Nestlé India paid Rs 1,024.5 crore in general licence fees to Swiss group company Société des Produits Nestlé S.A. during FY26, marking an increase of nearly 14% from Rs 897.9 crore paid in the previous financial year, according to the company’s latest annual report.
The payment, disclosed under related-party transactions, was one of the company’s largest transactions with fellow subsidiaries during the year. The annual report noted that the licence fee was paid under General Licence Agreements (GLAs) that give Nestlé India access to the Nestlé Group’s trademarks, patents, proprietary technology, know-how, intellectual property and technical support.
Nestlé India said the agreements enable it to benefit from the parent group’s global research and development network, helping the company customise products for local markets, improve manufacturing efficiency, strengthen quality standards and adopt sustainable sourcing and packaging solutions.
The company highlighted that it continues to derive significant benefits from the Nestlé Group’s centralised R&D capabilities, which are backed by an annual global R&D outlay of approximately CHF 1.7 billion. According to the report, access to these capabilities allows Nestlé India to optimise local R&D spending while benefiting from global scientific expertise and innovation.
Nestlé India also stated that imported technology received from the Nestlé Group remains an ongoing process, helping the company manufacture and market products across categories while maintaining competitiveness and product quality.
The disclosure comes as Nestlé India reported total sales of Rs 23,071.5 crore for FY26, driven by double-digit volume-led growth and market share gains across categories.
The company further noted that there were no material modifications to the terms and conditions of the General Licence Agreements during FY26, and all related-party transactions were conducted in the ordinary course of business and on an arm’s-length basis.
