Nestle India pays Rs 1,024.5 cr licence fee to Swiss parent entity in FY26 - Moneycontrol.com

Published 7 June 2026 · india

Besides, Nestle India also paid a 'withholding tax on general licence fees' of 102.47 crore for the financial year ended March 2026 In the preceding

Besides, Nestle India also paid a 'withholding tax on general licence fees' of 102.47 crore for the financial year ended March 2026 In the preceding year of FY25, Nestle India paid a general licence fee of Rs 899.41 crore and Rs 89.71 crore as 'withholding tax on general licence fees'. General licence fees (royalty) paid by FMCG major Nestle India to its Switzerland-based group entity Société des Produits Nestlé S.A. were up 13.91 per cent to Rs 1,024.5 crore in FY26, according to the company's latest annual report. Besides, Nestle India also paid a 'withholding tax on general licence fees' of 102.47 crore for the financial year ended March 2026. In the preceding year of FY25, Nestle India paid a general licence fee of Rs 899.41 crore and Rs 89.71 crore as 'withholding tax on general licence fees'.

Nestlé India obtains access to the Nestlé Group's technology and intellectual property through General Licence Agreements for manufacturing and marketing its products, while continuously benefiting from technological advancements and innovations across the product categories it produces and sells. It pays a royalty of 4.5 per cent of net sales to its parent firm. Promoter entities Nestlé S.A. and Maggi Enterprises Ltd together hold a 62.76 per cent stake in Nestle India as of March 31, 2026. Last year, shareholders of Nestle India rejected a proposal to increase the royalty payment to its parent firm by 0.15 per cent per year for the next five years, raising it to 5.25 per cent of net sales. The company had proposed implementing the increase from July 1, 2024; however, it failed to secure shareholders' nod.

"During the financial year ended 31st March 2026, there was no material modification in the terms and conditions of General Licence Agreements, as defined by the Audit Committee and specified in the RPT Policy," the annual report said. In FY26, Nestle India's revenue from sales was up 14.2 per cent to Rs 23,071.46 crore. The company owns popular brands such as Maggi, Nescafé, KitKat, MILKMAID, and Cerelac, among others. Besides, there was also a marginal decline in the total number of permanent employees at Nestle India to 8,382 in FY26, though the company is investing in capex and is in the process of setting up its tenth factory in India. In FY25, the number of permanent employees on the rolls of the company was 8,419. This number was at 8,736 in FY24, though this number was not comparable because the FY24 figure comprises data of 15 months from January 2023 to March 2024, due to a change in the financial reporting schedule.