Nestle India Pays Rs 1,024.5 Crore Licence Fee to Swiss Parent Entity in FY26

Nestle India Sees 13.91% Rise in Licence Fees Paid to Parent Firm

Nestle India, a leading FMCG major, has seen a significant increase in licence fees paid to its Switzerland-based parent firm Société des Produits Nestlé S.A. for the financial year ended March 2026. According to the company's latest annual report, the licence fees paid by Nestle India increased by 13.91% to Rs 1,024.5 crore in FY26.

This is in addition to the withholding tax on general licence fees, which stood at Rs 102.47 crore for the same period. In comparison, the company had paid a general licence fee of Rs 899.41 crore and a withholding tax of Rs 89.71 crore for FY25.

Nestle India obtains access to the Nestlé Group's technology and intellectual property through General Licence Agreements, which enables the company to benefit from technological advancements and innovations across its product categories. The company pays a royalty of 4.5% of net sales to its parent firm.

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As of March 31, 2026, Nestlé S.A. and Maggi Enterprises Ltd, the promoter entities, together hold a 62.76% stake in Nestle India. In FY26, the company's revenue from sales increased by 14.2% to Rs 23,071.46 crore, driven by the growth of its popular brands such as Maggi, Nescafé, KitKat, MILKMAID, and Cerelac.

Nestle India's employee numbers saw a marginal decline to 8,382 in FY26, while the company is investing in capex and setting up its tenth factory in India. The median remuneration of employees increased by 7.3% in FY26, compared to 4.9% in FY25. The remuneration ratio of the company's Chairman and Managing Director, Manish Tiwary, and its employees stands at 134:1.