INTRODUCTION

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a largenumber of co-packers, Nestl India is a vibrant Company that provides consumers in India withproducts of global standards and is committed to long-term sustainable growth and shareholdersatisfaction.The Company insists on honesty, integrity and fairness in all aspects of its business and expectsthe same in its relationships. This has earned it the trust and respect of every strata of society thatit comes in contact with and is acknowledged amongst India's 'Most Respected Companies' andamongst the 'Top Wealth Creators of India'.Nestl's relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products inthe Indian market. After India's independence in 1947, the economic policies of the Indian Government emphasisedthe need for local production. Nestl responded to India's aspirations by forming a company inIndia and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlto develop the milk economy. Progress in Moga required the introduction of Nestl'sAgricultural Services to educate, advise and help the farmer in a variety of aspects. Fromincreasing the milk yield of their cows through improved dairy farming methods, to irrigation,scientific crop management practices and helping with the procurement of bank loans.Nestl set up milk collection centres that would not only ensure prompt collection and pay fairprices, but also instil amongst the community, a confidence in the dairy business. Progressinvolved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thrivinghub of industrial activity, as well. For more on Nestl Agricultural Services.Nestl has been a partner in India's growth for over nine decades now and has built a very specialrelationship of trust and commitment with the people of India. The Company's activities in Indiahave facilitated direct and indirect employment and provides livelihood to about one millionpeople including farmers, suppliers of packaging materials, services and other goods.The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellnessthrough its product offerings. The culture of innovation and renovation within the Company andaccess to

the Nestl Group's proprietary technology/Brands expertise and the extensivecentralized Research and Development facilities gives it a distinct advantage in these efforts. Ithelps the Company to create value that can be sustained over the long term by offeringconsumers a wide variety of high quality, safe food products at affordable prices.Nestl India manufactures products of truly international quality under internationally famousbrand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAIDand NESTEA and in recent years the Company has also introduced products of dailyconsumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and NESTLJeera Raita.Nestl India is a responsible organisation and facilitates initiatives that help to improve thequality of life in the communities where it operates.

1.1 HISTORY OF NESTLE

Nestle is one of the major food and beverages company in the world. It was established in1867 by Henry Nestle, who was a trained pharmacist. The introduction of the company inthe market was through the development of an alternative source of infant nutrition for mothers who were unable to breast feed and named it as Farine Lactee Nestle. He chosehis surname 'Nestle' which means a 'little nest' for his company's name logo.In 1904 Nestle introduced its chocolates in the market. But when the availability of rawmaterials reduced during the First World War, Nestle purchased lot of factories in U.S andincreased their production to twice as their prewar production. Immediately, after the end of the war consumers switched back their choice to fresh milk due to which Nestle recorded itsfirst loss. However they streamlined their operations and brought production in line withsales and thereby dropping the debts.The 1930's saw Nestle introducing several new products like Milo and Nescafe. Nestleachieved considerable growth after the end of Second World War because of diversificationwithin the food sector. The sales of Nescafe instant coffee quadrupled between 1960 and1974.In 1980's Nestle drew flak from many organizations on account of promotion of infantformula over breast feeding which allegedly led to death of infants in less developedcountries. The boycott of Nestle products was suspended in 1984 after Nestle agreed tocomply with the international code.Nestle had major acquisitions of the Italian mineral water company San Pellegrino, SpillersPet Foods in UK in the year 1990's,

and Ralston Purina in 2002. Nestle also formed amerger with Anglo-Swiss Condensed Milk Company with the aim of widening its productrange and merged its ice cream business with Dreyer's in U.S.Since its entrance in the market, Nestle has prospered in various product innovations andbusiness achievements due to which it had become the major Food and Nutrition Companyin the world. In 2010, Nestle was also recognised as the top 4th Innovative Companyamong the Innovative companies for food for by the Fast Company Magazine.Nestle has introduced a wide range of products like chocolates, soups, coffee, cereals,frozen products, yoghurts, mineral water, food products, pet foods, pharmaceutical productsand even cosmetics in the family of NESTLE. They diversified beyond food industry byacquiring a major share in L'Oral cosmetics and acquired an American pharmaceuticalcompany, Alcon Industries. In all these products one common outcome is the high quality of NESTLE

Nestl processing units in India After nearly a century-old association with the country, today, Nestl India has presence across Indiawith 7 manufacturing facilities and 4 branch offices spread across the region. Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up factories inNanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by thecommissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. Theseventh factory was set up at Pantnagar,Uttarakhand,in2006. The 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012.The 4 branch offices in the country help facilitate the sales and marketing of its products. They are inDelhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon, Haryana. Nestl S.A. announced the establishment of the first R&D Centre in India in 2010, a part of theglobal R&D network. The foundation stone for the new Centre was unveiled on 22nd of September, 2010, in Manesar, Haryana.Mr. Subodh Kant Sahai, Honourable Minister of Food Processing Industries, Government of India, was the Chief Guest for the ceremony. Also present at the ceremony were His ExcellencyMr. Philippe Welti, Ambassador of Switzerland, Mr. Ashok Sinha, Secretary for Ministry of Food Processing Industries, Mr. Klaus E. Zimmermann, Global

Head of R&D Centres, NestlS.A., and Mr. A. Helio Waszyk, Chairman and Managing Director, Nestl India Limited. Mr.Zimmermann commented that the event not only marked Ne stls continuing long-term commitment to R&D, but also celebrated the building of Nestls first R&D Centre in India. He mentioned that the R&D Centre would allow Nestl to offer consumers in India and beyond, thechoice of tasty, healthy, and nutritious products. Mr. Waszyk emphasized that the Nestl Boardsdecision to establish an R&D Centre in India at the request of Nestl India, would be an additional competitive advantage. It would help accelerate the Companys growth and at the same time contribute towards reducing nutritional deficiencies in the country.

Architects impression of the facility, expected to be fully functional in 2012 Better nutrition for India is a perpetual challenge. It's meaning changes with the countrys stageof development, the degree of social awareness, and scientific consensus. The new Nestl R&Dfacility in India will help develop great tasting food solutions that are relevant for consumers inIndia, creating products that take the promise of taste and health to a broader economic and social section than ever before. It will also strengthen Nestls leadership in emerging marketsand fortify Nestl Indias position as the leader in Nutrition, Health and Wellness. Ms. Shivani Hegde, Chairperson of R&D India and also Head of the Foods Business, reiteratesthat Nestl India has always had Research and Development support from the Nestl R&Dnetwork across the world, and now, with the foundation being laid for the new R&D Centre inManesar, theCompany for part of its research, will benefit from a greater Indian consumerfocus. Having an R&D Centre close to the Nestl India Head Office will bring Research andDevelopment closer to Businesses, and reflects the Nestl spirit of R&D-Business partnershiptowards developing Winning concepts, suited to the local consumer. It will help Nestl R&D tobring out strong localised concepts that are in accordance with the Nestl Group thrust onaffordable Nutrition, Health and Wellness. Ultimately, these concepts will not just be relevantfor emerging markets like India, but could be transferred to Nestl worldwide.

Mr. Simon Robertson, Head of R&D India, sees that the target to complete the building in 2012is a challenging one, but one that the team is set to deliver. Work on the building is moving forward and day by day we see the progress on site as we start to create the latest R&D Centre.At the same time, we are also building bridges with local institutions and government bodies thatwill give us a deeper understanding of the products needed in India and to support our future development programmes."* This pictorial representation does not purport to be the political map of India. India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a variety of food products such as infant food, milk products, beverages, prepared dishes & cooking aids, andchocolates & confectionary. Some of the famous brands of Nestle are NESCAFE, MAGGI,MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLESLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita.Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestle's first product was"Farine Lactee Nestle", an infant cereal. In 1905, Nestle acquired the Anglo-Swiss CondensedMilk Company. Nestle's relationship with India started 1912, when it began trading as TheNestle Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling

finishedproducts in the Indian market.After independence, in response to the then economic policies, which emphasized localproduction, Nestle formed a company in India, namely Nestle India Ltd, and set up its firstfactory in 1961 at Moga, Punjab, where the Government wanted Nestle to develop the milkeconomy. In Moga, Nestle educated and advised farmers regarding basic farming and animal husbandry practices such as increasing the milk yield of the cows through improved dairy farming methods, irrigation, scientific crop management practices etc. Nestle set up milk collection centres that ensured prompt collection and paid fair prices. Thus, Nestle transformed Moga into a prosperous and vibrant milk district.In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the teagrown in the area into soluble tea. Nestle opened its third factor in Nanjangud (Karnataka) in1989. Thereafter, Nestle India opened factories in Samalkha (Haryana), in 1993 and two in Goaat Ponda, and Bicholim in 1995 and 1997 respectively. Nestle India is now putting up the 7thfactory at Pant Nagar in Uttarakhand.Today, Nestle is the world's largest and most diversified food company. It has

around 2,50,000employees worldwide, operated 500 factories in approximately 100 countries and offers over8,000 products to millions of consumers universally.

History of Nestl

Nestl began in Switzerland in the mid 1860s when founder Henri Nestl created one of the firstbaby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable tobreastfeed often lost their infants to malnutrition. Henris product was a carefully formulatedmixture of cows milk, flour and sugar. Nestls first product was called Farine Lacte(cornflour gruel in French) Henri Nestl. The product was first used on a prema ture baby who could not tolerate his mothers milk or other alternative products of that time. Doctors gave upon treating the infant. Miraculously the baby tolerated Henris new formula and it provided thenourishment that saved his life. Within a few years the first Nestl product was marketed inEurope.In 1874 the Nestl Company was purchased by Jules Monnerat. Nestl developed its owncondensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. TheAnglo-Swiss Condensed Milk Company made products like cheese and instant formulas. Thetwo companies merged in 1905, the year after Nestl added chocolate to its line of foods. The newly formed Nestl and Anglo-Swiss Milk Company had factories in the United States, Britain,Spain and Germany. Soon the company was full-scale manufacturing in Australia withwarehouses in Singapore, Hong Kong and Bombay. Most production still took place in Europe.The start of World War I made it difficult for Nestl to buy raw ingredients and distributeproducts. Fresh milk was scarce in Europe, and factories had to sell milk for the public needinstead of using it as an ingredient in foods. Nestl purchased several factories in the U.S. tokeep up with the increasing demand for condensed milk and dairy products via government contracts. The companys production doubled by the end of the war. When fresh milk became

available again after the war, Nestl suffered and slipped into debt. The price of ingredients wasincreasing, the economy has slowed and exchange rates deteriorated because of the war.An

expert banker helped Nestl find ways to reduce its debt. By the 1920s Nestl was creatingnew chocolate and powdered beverage products. Adding to the product line once again, Nestl developed Nescaf in the 1930s and Nestea followed. Nescaf, a soluble powder, revolutionizedcoffee drinking and became an instant hit.With the onset of the Second World War, profits plummeted. Switzerland was neutral in the warand became increasingly isolated in Europe. Many of Nestls executive officers weretransferred to offices in the U.S. Because of distribution problems in Europe and Asia, Nestlopened factories in developing countries in Latin America. Production increased dramaticallyafter America entered the war. Nescaf became a main beverage for the American servicemen inEurope and Asia. Total sales increased by $125 million from 1938 to 1945.Nestl continued to prosper, merging with Alimentana S.A., a company that manufactured soupsand seasonings, in 1947. In the coming years, Nestl acquired Crosse & Blackwell, Findusfrozen foods, Libbys fruit juices, and Stouffers frozen foods. Nescaf instant coffee salesquadrupled from 1960 to 1974, and the new technology of freezedrying allowed the company tocreate a new kind of instant coffee, which they named Taster s Choice. Expanding its product line outside of the food market, Nestl became a major stockholder in LOral cosmetics in 1974. Soon after the company suffered with increasing oil prices and the slowing growth in industrialized countries. Foreign exchange rates decreased, in turn reducingthe value of sterling, the pound, dollar and franc. Prices of coffee beans and cocoa rose radically,presenting further problems for Nestl. The company decided to venture into the pharmaceuticalindustry by acquiring Alcon Laboratories, Inc. While trying to deal with unstable economicconditions and exploring its new ventures, Nestl faced the crisis of an international boycott. Many organized groups began boycotting allof Nestls products because they disapproved of Nestl marketing its baby formula in developing countries. Problems like illiteracy and povertycaused some mothers to use less formula than recommended. In a watered down formula, vitalnutrients are lessoned. Contaminated water presented another problem, since the formulas had tobe mixed with water. The organizations argued that the misuse of formula resulted in themalnutrition or death of many infants in developing countries.According to Nestl the World Health Organization never made statements tying infant death ormalnutrition with baby

formulas. The company didnt deny the superiority of breastfeeding andagreed that substituting breast milk for other substances could be very dangerous. Nestlexplained that breastfeeding and non-breastfeeding mothers in developing countries often gavetheir babies whole cows milk, tea, cornstarch, rice water or a mix of flour and water. Thesealternatives were very unhealthy and a nutritional baby formula was a better choice. Nestl says that it has never discouraged breastfeeding when it was possible. Nestl agreed to follow theInternational Code in developing countries in 1984, and the boycott was suspended. It resumedseveral years later when the organizations believed Nestl was sending free or low cost babyformulas to developing countries. Nestl said it only sent formula to countries that allowdonations for orphans, multiple births, and babies with no access to breast milk. The companyhas stopped all public advertising for formula in developing countries for almost 20 years. The boycott continues to some extent to this day without satisfactory resolution.By the 1980s Nestl had a new Chief Executive Officer. The company focused on improving itsfinancial situation and continuing to expand. In the one of the largest takeovers at that time,Nestl bought Carnation for $3 billion and parted with any unprofitable businesses. Internationaltrade barriers diminished in the 1990s, opening trade with parts of Europe and China. In the1990s Nestl acquired San Pellegrino, and Spillers Petfoods of the UK. With the acquisition of Ralston Purina in 2002, the Nestl-owned pet care businesses joined to form the industry leaderNestl Purina PetCare. The leading in the food industry, Nestl brings in $81 billion in overallsales and has 470 factories around the world. Nestl will continue to grow, introduce newproducts and renovate existing ones. The companys mission is to focus on long -term potentialover short-term performance.

Nestls Main Brands Nestl expands across many different markets including beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of course candy. Some of Nestls main brands include: Kit Kat, Butterfinger, Smarties, Crunch, Quality Street, Milkybar/Galak, TollhouseNestea, Nescaf, Tasters Choice, Nesquick, Carnation, Libbys

OPERATIONS Nestl has been a partner in India's growth for over nine decades now and has built avery special relationship of trust and commitment with the people of India. TheCompany's activities in India have facilitated direct and indirect employment andprovides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changinglifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition,Health and Wellness through its product offerings. The culture of innovation andrenovation within the Company and access to the Nestl Group's proprietarytechnology/Brands expertise and the extensive centralized Research andDevelopment facilities gives it a distinct advantage in these efforts. It helps theCompany to create value that can be sustained over the long term by offeringconsumers a wide variety of high quality, safe food products at affordable prices.

Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT,BAR-ONE, MILKMAID and NESTEA and in recent years the Company has alsointroduced products of daily consumption and use such as NESTL Milk , NESTLSLIM Milk , NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita . Nestl ndia is a responsible organization and facilitates initiatives that help to improve thequality of life in the communities where it operates. PRESENCE IN INDIA Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factoryat Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area intosoluble tea. The Nanjangud factory (Karnataka), became operational in 1989, theSamalkha factory (Haryana), in 1993 and in

1995 and 1997, Nestl commissioned twofactories in Goa at Ponda and Bicholim respectively. Nestl India has commissioned in2006 its 7th factory at Pant Nagar in Uttarakhand.

BRANDS

MILK PRODUCTS AND NUTRITION EVERYDAY DAIRY WHITENER

EVERYDAY GHEE MILK SLIM MILK SILM MILK NEVISTA PRO-HEART MILK FRESH n NATURAL DAHI

FREAH n NATURAL SLIM DAHI JEERA RAITA NESVITA DAHI MILKMAID FRUIT YOGHURT MILKMAID

 MILKMAID FUNSHAKES NIDO BEVERAGES NESCAFE CLASSIC SUNRISE PREMIUM SUNRISE SPECIAL CAPPUCCINO MILO SMART PLUS READY TO- DRINK CED TEA WITH GREEN TEA NESTEA ICED TEA PREPARED DISHES AND COOKING AIDS MAGGI 2 MINUTE NOODLES VEG ATTA NOODLES RICE NOODLES MANIA CUPPA MANIA

 SAUCES PICHKOO PIZZA MAZZA MAGIC CUBES BHUNA MASALA COCONUT MILK POWDER HEALTHY SOUPS HEALTHY SOUP-SANJEEVNI CHOCOLATES AND CONFECTIONERY = KIT-KAT KIT-KAT CHUNKY MUNCH MUNCH POP CHOC MILKYBAR MILKYBAR CHOO

 BAR-ONE MILK CHOCOLATE POLO ECLAIRS MILKYBAR ECLAIRS

NESTLE & COMMUNITY

Nestl India has always focused on long term, sustainable and profitable growth andhelped communities around its factories to improve their quality of life in a similar manner. Nestl Agricultural Services has used the experience gained by Nestl acrossthe world to set up a system of direct and efficient contact with the farmers. Company veterinarians and agronomists supervise the milk routes and advise farmers on variousissues including proper feed for the herds. Milk storage facilities have been set up closeto the farmers. Veterinary services are provided free, and medicines at wholesale cost. The company assists farmers in artificial insemination programs for provided

OBJECTIVE Evaluating companys performance relating to distribution channel.

To identify the strengths and weakness of the company.

To find out selection criteria of channel of company.

To find out how company manage their product and distribution.

From

the

analysis

of

distribution

channel

management,

knowing

how

to

managedistribution for day to day requirement.

To identify how they satisfying their customer

CHAPTER-6 RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Research is a systematic and objective analysis and record of controlled observation thet maylead to development of knowledge, principle and theory.Research is the method of studying, analyzing and conceptualizing social life in order toverifying, modifying, and correcting knowledge, weather that knowledge is for practices ortheory.Research is systematic and objective way of finding answer to question or solution of theproblem. The marketing research is a process involve number of interrelated activities, whichoverlap and do rigidly follow particular sequence. It consist of the following step:

Formulating the objective of the study. Designing the method of data collection. Selecting the sample plan. Collection of data. Data analyzing.

RESEARCH DESIGN Research design is the method and process of analyzing information needed. It is frame workof the project that analyze what information is to be collected from what source and whatprocedure.Research design is the plan structure and strategy of investigating conceived so as to obtainanswer to research question and to control variance. The research design constitutes the blueprint for the collection, measurement and analysis of data.I have chosen the descriptive research design.

DESCRIPTIVE RESEARCH DESIGN:Descriptive research also known as statistical research, describes data and characteristicsabout the population or phenomenon being studied. Descriptive research answers thequestions who, what,where, when and how...In descriptive research, researcher must able to define clearly, what he want to measure andmust find adequate method for measuring it along with a clear cut definition of population hewant to study. The descriptive study may be concerned with the attitude or views of

apeopletoward any thongs e.g. attitude toward presidential form of government, right to strike,ca pital punishment, collage autonomy e.t.c

Collection of data is preliminary step in enquiry. There are two type of data through whichwe collect the information and execute the result afterward.

Primary data,

Secondary data. PRIMARY DATA It is the information which has never been discovered or found out or available in written format.This data or information is totally new and help very efficiently to solve the unansweredquestion. such data are original in character and are generated in large number of surveysconducted mostly by government or by individuals, institution and

research bodies.Following are the method of collecting primary data:Interview Questionnaire Observation Group discussion

SECONDARY DATA

Secondary data is the information which has been

already found out by someone or availablein

written format. As the data is already published and known in general is called secondary data.We use secondary data for collection of information in project.We get secondary data from: Internet Books Magazines Newspaper And many more.Here we done analysis on the basis of secondary data, which includes:industry profile

Company profile

Information about Product and services

Distribution channel of the company e.t.c. Suggestions

NESTLE should improve its customer service. As it plays an important role in attractingcustomers. Employees should be trained to handle customers.

The

company

should

come

forward

with

meaningful

advertisements

and

awarenesscampaigns to create awareness among customers regarding services and to make thepopular amount the entire age and income groups.

Proper communication channel should be there between customer and the company,especially in NESTLE. Product information has to be communicated to the customer.There are many product of HINDUSTAN UNILIVER which are normal customer isunaware off.

Company like HINDUSTAN UNILIVER should improve there network of branches.They should enter the rural area which is a major part of Indian market.

The company as to improve the distribution channel of product and services so as tosatisfying customer.

Company has to launch the new product of low range so that low income people can alsobuy.

System should be simple to used, fast and user friendly. Service should we standardizedso that wherever it is used the customer is familiar with the procedure followed.Customer should have ready sources of advise, weather this is to call centers, throughpublicity or through physical presence.

Conclusion Most of the people are aware of the services given by the company either

NESTLEorHINDUSTAN UNILIVER. New generation people mostly prefer NESTLE services. Here,advertisement plays advertisement plays a major role in making people aware of the servicesoffered by the different company. New company and foreign company have entered the market,which has made the competition intense. Innovative ways of marketing has to be use. Theservice plays a very important role in attracting customers. Special care has to be taken incustomer service. As we know that NESTLE is a private company so its brand image is

muchhigher than other company, and under this analysis also the NESTLE has very strong marketingstrategy in comparison to HINDUSTAN UNILIVER. So from the above information I analyzedthat nestle have more chance of success then HINDUSTAN UNILIVER. The satisfaction level isalso more in NESTLE, from the research we conclude that normal person that have low incomenot able to invest in NESTLE products. By Studying the recent developments we can see thatboth company are contracting on a rural and urban area for business.So we can conclude that both company are taking special marketing initiative to capture theRural market of India. From this research we can conclude that NESTLE also has to take care ofthe weaker section of the society, so there marketing strategies are restricted. From the researchwe also see that distribution channel of the company are still not good so as to fulfill need of customer. Websites:

www.nestle.com .

WWW.hindustanuniliver.com

www.distributionchannelofnestle.com

www.distributionchannelofhindustanuniliver.com

Growth potential Nestl recorded sales of CHF 1.4 billion in India in 2010. Its most popular brands are Maggi , the countrys

leader in instant noodles, and Nescaf instant coffee. Nandu Nandkishore, Nestls Executive Vice President and Zone Director for Asia, Oceania, Africa and the Middle East thinks there is much potential for further growth. India is a success story in the making, he said. It has a large, progressive populat ion. Consumers trust our products for their high quality. Opportunities will continue to grow as more and more people want to buy nutritious, branded food and beverages.

Investment Nestl India has invested USD 500 million to increase its capacities over the last two years.This includes CHF 70 million in a new manufacturing site in Nanjangud to produce Maggi products. The construction of Nestls eighth factor y in Tahliwal, Himachal Pradesh, is progressing rapidly. Existingfactory sites in Moga, Samalkha, Ponda and Bicholim are also being expanded.Nestl S.A. is investing CHF 50 million in a newresearch and development centre in Manesar, Haryana, whichwill become operational towards the end of 2012. Scientific expertise

India faces significant nutritional challenges.The majority of Indian women and children suffer from basic micronutrient deficiencies such as vitamin A, iron,iodine and zinc.At the same time a large proportion of the population also suffers from non-communicable diseases such asobesity and diabetes.Mr Nandkishore believes that tackling the double burden of under and over nutrition will make a positive impact on Indias productivity and that Nestl has a role to play in this.

Nestl is an integral part of India, he continued. Our unmatched research and developme nt capabilities haveenabled us to create products which offer improved, affordable nutrition to consumers in all segments of Indian society.

With our expertise in science based nutrition, we can contribute significantly to improving Indian consumers health and wellbeing, as well as creating value for the economy.

Addressing micronutrient deficiency Nestl is helping to address micronutrient deficiency among lower income consumers in India and otheremerging markets with its affordable, fortified Popularly Positioned Products (PPP). Nestls PPPs are smaller or daily -

portion packs designed to be boug ht on a regular basis. They aremanufactured locally, using local raw materials to minimise value chain costs.PPP products in India include the iron-, iodine- and vitamin A-fortified Maggi Masala-ae-Magic spicemix and Maggi 2-Minute Noodles with added calcium and protein.Nestl India has a factory in Uttarakhand dedicated to PPP production.The new Nestl S.A. R&D centre in Manesar will also work predominately on PPPs. Rural development Nestl built its first Indian factory in Moga in 1961, developing milk production in the region. The companynow has seven factories in the country.Over the years, Nestl has helped to develop the area around that first factory, setting up milk collection pointsand training farmers to improve productivity and quality. The companys agronomists provide farmers with technical support to impr ove sustainable water management, including help with irrigation and rainwater

harvesting.Nestl India has built more than 160 drinking water fountains in schools near its factory in Moga, providingabout 65,000 students with access to clean water.The company has also improved the sanitation facilities in girls schools close to the factory to encourage young women to continue with their education. These efforts are part of what Nestl calls Creating Shared Value, an approach to business that aims to create value for shareholders at the same time as for those communities where the company operates.

Latest Brand NESCAF GOLD One whiff of NESCAF GOLD'S intensely rich, captivating aromaand you know its coffee all others will be measured against.Rising above all to the highest standards set by coffee connoisseurs.Come indulge your senses with a truly precious coffee experience. Brands Nestl India has many brands mostly in the food and beverages segment many of itsbrands are household names in India. The several brands of Nestl India can be dividedinto four categories. Please find below a list of main Nestl India brands under corresponding categories. 1 ) M I L K P R O D U C T S

&

N U T R I T I O N

NESTL EVERYDAY

NESTL Milk

NESTL NESVITA NESTL Fresh n Natural

NESTL CEREVITA

NESTL MILKMAID

NESTL NIDO 2 ) C O F F E E

A N D

B E V E R A G E S

NESCAF

NESTL MILO

NESTEA 3 ) P R E P A R E D

D I S H E S

&

C O O K I N G

A I D S

MAGGI 4 ) C H O C O L A T E S

&

C O N F E C T I O N E R Y

NESTL KIT KAT

NESTL MUNCH

NESTL MILKYBAR

NESTL BAR-ONE

NESTL Milk Chocolate

POLO

NESTL Eclairs Nestl has two popular brands Cerelac and Lactogen in infant food category butadvertisement for them is banned in India as per law. An important thing to note isNestl follows an umbrella branding strategy where most of its brands have the name Nestl associated with it and the same is true with its sub -brands as well.