Nestle India shareholders reject royalty payment increase to parent company

Shareholders of Nestle India Ltd. have rejected the company’s proposal to increase the royalty payments to its Swiss parent company. The decision came after 57% of shareholders voted against the plan, as revealed in a stock exchange filing on Friday.

Nestle India had announced in April its intention to raise the general license fees, or royalty, from 4.5% to 5.25% of turnover. This increase was to be implemented gradually over five years, with an annual increment of 0.15%. The new rate was scheduled to take effect on July 1.


In 2023, Nestle India reported total sales of Rs 16,790 crore and a net profit of Rs 2,390 crore. Despite the company’s strong financial performance, the majority of shareholders were not in favor of the proposed increase in royalty fees.

The rejection of this proposal highlights the shareholders’ concerns and their influence over major financial decisions within the company.