FMCG giant Nestle India votes against increase in royalty to Swiss parent
Nestle (Representative image)
Shareholders in Nestle India have rejected a company proposal to increase royalty payments to its Swiss parent Nestle, the company said late on Friday.
The motion called for the royalty paid to its parent to climb to 5.25 per cent of net sales, net of taxes, compared to the current level of 4.5 per cent. The increase was proposed at a rate of 0.15 per cent per annum.
About 70.8 per cent of public shareholders voted against the increase, a filing showed.
Under Indian regulations, the potential change would be classified as a related party transaction, which means that controlling shareholders were not allowed to vote.
The company did not say whether it intends to review the proposal.
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First Published: May 18 2024 | 11:04 AM IST