New Delhi, Feb. 5 -- Nestle India Ltd could be a beneficiary of the much-awaited boost to urban consumption from the budget as and when it starts to trickle in. The company derives around 75% of its sales from the urban market.

In a recent meeting with analysts, the management displayed confidence about the long-term prospects given the industry's compelling growth opportunity led by relatively low per capita packaged foods consumption.

But there are near-term challenges. Like many other consumer-focused companies, Nestle too is facing the wrath of the general dull demand conditions in the country, which is marked by moderating urban demand and comparatively faster rural growth. High food inflation is another factor hurting growth. The ...