New Delhi: Nestle India shareholders voted against Proposal To increase royalty payment till canned foods manufacturerParent company of AG Nestle SA,

shareholders Of Nestle India Limited have turned down company proposal To increase its royalty payments swiss parents, The proposal did not pass, with 57 percent of its shareholders voting against the plan. can food The manufacturer said in a stock exchange filing on Friday.

The proposal was to increase the royalty by 0.15 percent of sales each year over a five-year period. The revised payment charges were to come into effect from July 1.

manufacturer of Maggi noodles and nescafe Coffee had last month announced a proposal to increase the license fee from the current 4.5 per cent to 5.25 per cent of net sales over a period of five years.

Seventy percent of the company’s public shareholders and 57 percent of total shareholders voted against the increase in royalty payments to the Swiss parent company, the world’s largest packaged food maker.

Avnish Roy, Executive Director Nuvama Institutional Equities Said that this development is a big positive step for Nestlé.

Nestle India An increase of 27 percent was recorded in Net Profit Net profit in the fourth quarter ended March 2024 stood at Rs 934 crore, compared to Rs 737 crore in the year-ago period, which was attributed to strong demand And low material costs, Revenue from operations rose 9 per cent to Rs 5,268 crore in the quarter, from Rs 4,830.5 crore in the year-ago period.

The company has meanwhile entered into a firm agreement Dr Reddy’s Laboratories Forming a joint venture to launch nutraceutical brands including vitamins, minerals, herbs and supplements Nestle Health Sciences (NHSC). Dr Reddy’s stake in the joint venture will be 51 per cent and Nestle India will hold 49 per cent, with the latter having a call option. Increase shareholding Up to 60 per cent after six years at fair market value.