In American today there is a bit of a rush toward India. “The 1.4 trillion dollar economy, growing at 7 percent. They like India. The last three US presidents have visited India, much more so than before.” All this is true.

But some foreign companies have been doing business in India since the early 20th Century. (And I don’t include the colonials of the British East India company).

General Electric supplied a hydroelectric plant in over a hundred years ago. And Nestlé began India operations in 1912.  According to Consumer Goods Technology,Nestlé’s first sales agents in India began work in Chennai and Kolkata in 1912. Today, the company directly employs 6,000 people in India  and tts products are sold in more than 3.5 million outlets across the country. Nestlé recorded sales of CHF 1.4 billion in India in 2010. Its most popular brands are Maggi, the country’s leader in instant noodles, and Nescafé instant coffee. I grew up in (admittedly tea-drinking)north India thinking that coffee and Nescafe were the same thing.

What this means to new entrants:

You’re the new kids on the block in India. Be prepared to pay your dues before you can succeed. In most markets in India, there are smart local and foreign companies who can run you over if you don’t go fully prepared and with good advisors.

Executives from Nestle and General Mills attended the opening of an innovation center for Cereal Partners Worldwide, (CPW), a joint venture between the two companies located in Orbe, Switzerland.

Nestle India is allying with National Diabetes, Obesity and Cholesterol (NDOC) Foundation to study the specifics and patterns of diabetes prevalence in the country. Dr Anoop Misra, Director, department of diabetes and metabolic diseases, Fortis Hospitals will lead the research.   (Last year I visited Dr. Misra and reviewed some of his great work for diabetes awareness in India).

According to news reports, the MoU with Nestle revolves around two pillars, one on increasing nutritional awareness on dietary modification needed to prevent and manage diabetes and secondly, around research around the disease in the Indian landscape.

Diabetes is a huge problem in India due to genetic predisposition. Increasing sedentary lifestyles, inappropriate diets are causing a rise in the incidence of the disease. At the same time, affluence is increasing the number of patients who can access treatment and diagnosis.

Swiss food and consumer goods giant Nestlé will open a research and development center in Manesar, Haryana, south of India’s capital city, where it will use local ingredients and spices, as well as low-cost Indian research and engineering to make products for India as well as other countries.

According to the New York Times, Nestlé will focus on making nutritionally enhanced foods for people with lower incomes, said Klaus Zimmermann, senior vice president and head of research and development. The $50 million facility will open by 2012.  Click here to see Nestle management on CNBC television talking about their plans.