Nestle India Shareholders Approve Continued Royalty Payments

Nestle India shareholders have approved continuing royalty payments to its parent firm at 4.5% of net sales. Earlier, a proposal to increase the rate to 5.25% over five years was rejected. The decision was confirmed in the company's AGM held on July 8, 2024, with substantial support.

Nestle India shareholders have given the green light to continue royalty payments to its parent company, maintaining the rate at 4.5% of net sales.

Previously, a proposal to incrementally raise the royalty to 5.25% over five years was turned down. However, the Board later decided to continue paying the existing rate, subject to shareholder approval.

At the Annual General Meeting on July 8, 2024, the resolution for the continued payment of royalties was overwhelmingly passed, with 99.54% votes in favor and just 0.46% against.

(With inputs from agencies.)