Bhubaneswar: Nestlé India is set to expand its domestic manufacturing footprint with its 10th manufacturing facility near Khurda, Odisha, while placing dairy supply-chain decarbonisation at the centre of its broader sustainability strategy.
The new facility is being positioned as an example of how resource efficiency, energy management and sustainable engineering can be integrated into industrial expansion. According to Kunwar Himmat Singh, Director–Corporate Affairs and ESG, Nestlé South Asia Region, sustainability considerations are incorporated into decisions involving capital expenditure, equipment procurement and product reformulation, rather than being treated as a standalone corporate function.
Dairy supply chain accounts for over 70% of footprint
While Nestlé India is working on sustainability across manufacturing, packaging, logistics and sourcing, the company has identified upstream dairy sourcing as accounting for more than 70% of its overall sustainability footprint.
This makes milk procurement and on-farm practices a critical area for reducing greenhouse-gas emissions.
The company’s dairy decarbonisation efforts therefore focus on areas including methane management, farm-level interventions, resource efficiency and regenerative livestock practices across its milk-sourcing network.
Net-zero strategy drives investment decisions
Nestlé’s broader climate strategy uses 2018 as its baseline, with interim targets of reducing greenhouse-gas emissions by 20% by 2025 and 50% by 2030.
The company says it has already surpassed its 2025 reduction milestone and remains focused on achieving its 2030 target. Progress is being assessed through environmental indicators such as reduced plastic consumption, improved water management and automated energy monitoring.
From factory efficiency to farm-level emissions
The Odisha expansion highlights an increasingly important shift in the food and dairy industry: decarbonisation cannot be addressed only inside factories.
For companies sourcing large quantities of milk, a significant share of environmental impact occurs upstream through cattle feed, enteric methane emissions, manure management, farm energy use and other agricultural activities.
As a result, improvements in milk procurement systems, animal nutrition, methane reduction, manure utilisation and climate-resilient dairy farming are becoming increasingly important components of corporate sustainability programmes.
Nestlé is also applying sustainable sourcing principles to other agricultural supply chains, including coffee and spices, through programmes such as the Nescafé Plan.
Why it matters for India’s dairy sector
The development could have wider implications for India’s dairy industry. As large food companies face growing pressure to reduce Scope 3 emissions, sustainability requirements are increasingly moving beyond factories and into the farmer-level supply chain.
For dairy cooperatives, private processors and milk producers, this could create greater emphasis on measurable low-carbon milk production, improved feed efficiency, methane mitigation, renewable energy and sustainable manure management.
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