Nestle India to pay royalty licence fee to parent firm at 4.5%

On Wednesday, June 12, the board of Nestle India approved the continuation of payment of royalty licence fee to its Swiss parent company Société des Produits Nestlé S.A. at the current rate of 4.5 per cent, the company said in a stock market disclosure.

The announcement has been made 'respecting the decision of the (board) members and feedback from other stakeholders', the company added.

On May 18, the majority of Nestle India shareholders voted against a plan to boost royalty payouts to Swiss parent Nestle SA. More than 57 per cent of Nestle India's shareholders voted against increasing royalty.

Simultaneously, the company has also announced the appointment of veteran finance professional Sidharth Kumar Birla as an additional director and independent non-executive director for five years.

Meanwhile, shares of Nestle India closed at Rs 2,532.95 each, down 0.40 per cent on BSE today, June 12.

This is a developing story. More details will be added shortly.