Nestlé India has initiated a Rs 900 crore factory in Khordha, Odisha, boosting the ‘Make in India’ initiative. It aims to enhance local production, create jobs, and reduce logistics costs.
Nestlé India, on Friday, marked a significant milestone in its manufacturing journey with the announcement and groundbreaking ceremony of a new factory in Odisha — its tenth nationwide and the very first in eastern India- to be set up in the Khordha district with an initial outlay of Rs 900 crore.
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Notably, this facility in Odisha is a major push for the ‘Make in India’ movement. Further, by building a production base closer to emerging consumption hubs, Nestlé is not only sharpening its logistics edge but also deepening domestic manufacturing capabilities.
In doing so, it’s reducing reliance on inter-state supply chains and paving the way for faster, locally-made innovations tailored for Indian palates. This localisation will not only improve cost efficiencies but also increase the use of local raw materials, suppliers, and technical talent, helping the state become a truly self-reliant economy.
Nestlé’s Factory Footprint in India: A Strategic Map
The Khordha plant will join a network of nine other Nestlé India facilities spread across Punjab, Haryana, Karnataka, Tamil Nadu, Goa, Uttarakhand, Himachal Pradesh and Gujarat.
Each factory plays a specialised role: Moga in Punjab is Nestlé’s oldest and is focused on dairy; Nanjangud in Karnataka produces ready-to-cook products; and Sanand in Gujarat is a model of female workforce participation.
As of now, the Odisha plant represents a geographic rebalancing of Nestlé’s operations to align with consumer trends in under-served eastern markets.
What Will the Odisha Unit Produce?
According to the press release shared by the company, the Khordha facility will focus on Nestlé’s prepared dishes and cooking aids portfolio, which includes popular brands like Maggi noodles, seasonings and mixes.
It will also help reduce logistic costs and cut delivery timelines for eastern and northeastern markets, which until now have relied on supply from plants located over 1,000 kilometres away.
Jobs, Inclusion and Local Upliftment
Beyond production, the plant is expected to play a transformative role in local employment. Online media reports have hinted at a workforce model similar to its Sanand factory in Gujarat, where women constitute over 60% of the staff, but the company is yet to shed light on the same.
With Khordha’s industrial infrastructure developing fast and the government offering incentives, the plant could create several thousand direct and indirect jobs in the coming years, especially for women and young professionals in technical trades.
Moreover, the project falls within Odisha’s Food Processing Policy framework, promising integration with local agri-value chains and MSMEs (Micro, Small and Medium Enterprises). As a result, this could spur upstream rural employment and develop supplier ecosystems around spices, flour, and packaging.
Why The Odisha Investment Matters
Nestlé’s Rs 900 crore commitment to Odisha is not just a factory announcement; it signals confidence in the state’s economic future. The eastern region, long ignored by multinationals, is now emerging as a manufacturing hotspot with lower land and labour costs, improved infrastructure, and government support.
The Khordha facility will also reflect Nestlé’s global push towards sustainability as company officials have indicated the use of energy-efficient technologies, water conservation systems, and minimal environmental footprint design – aligning with Nestlé’s net-zero emissions goal.
As Odisha prepares to host its first major FMCG manufacturing hub, Nestlé’s arrival may set a precedent for more brands looking to tap into eastern India’s untapped potential.
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