Nestle India board approves hike in royalty payment to parent company
The fees are payable in a staggered manner over five years by making an increase of 0.15 per cent per annum over the current licence fees of 4.5 per cent per annum effective from July 1, 2024, the company added.
)
The Nestle India Board of Directors has approved a staggered hike of 0.15 per cent per annum in royalty payment to its parent company.
“The Board of Directors, on the recommendation of the audit committee, approved the payment of general licence fees (royalty) by the company to Societe des Produits Nestle S.A. (licensor), being a related party as per Regulation 2(1)(zb) of the Listing Regulations, at the rate not exceeding 5.25 per cent, net of taxes, of the net sales of the products sold by the company as per the terms and conditions of the existing general licence agreements," Nestle India said in a statement.
The fees are payable in a staggered manner over five years by making an increase of 0.15 per cent per annum over the current licence fees of 4.5 per cent per annum effective from July 1, 2024, the company added.
Emkay Global Financial Services, meanwhile, said in a research report that Nestle India is among the prime beneficiaries of heightened consumer adoption of packaged foods.
The current capex cycle of Rs 64 billion for CY20-25 is likely to support the company in addressing the segment demand more effectively. Nestle's thrust on penetration-led volume growth is also helping it outperform the sector volume growth, while strong pricing power is an added advantage and a likely factor for faster margin recoup, it said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

LIC Saral Pension Plan: How to get Rs 64,000 annual pension on Rs 10 lakh one-time investment in this annuity scheme that everyone is talking about

Rs 1,500 Monthly SIP for 20 Years vs Rs 15,000 Monthly SIP for 5 Years: Know which one can give you higher returns in long term

LIC Saral Pension Plan: How much should you invest one time to get Rs 64,000 annual pension for life?

Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible

SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme
10:33 PM IST