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Nestlé is the worldǯs leading nutrition, health and wellness company. The
company employs more than 280,000 people and has 456 factories in 84
countries. Nestlé products are sold in almost every country in the world.

Founded in 1866 in Vevey, Switzerland, where it is still based, Nestlé has

often been called Dzthe multinational among multinationalsdz. Only about 1.5
percent of its sales are generated in its home country, and all but 12 of its
factories are situated abroad. The CEO is Paul Bulcke, and the General
Management includes a Belgian, two Canadians, one Dutch, a Frenchman, a
German, a South African/British, three Spaniards, one Swiss, one American
and a Swiss-American.

Nestlé is a truly public company with over 250,000 shareholders of which

around one third are Swiss. No single shareholder owns more than 3% of
the stock. US investors, who, together, hold over 30% of the capital, can
purchase ADRs through a sponsored program. As the worldǯs leading
nutrition, health and wellness company, Nestlé is the worldwide leader in
product categories such as soluble coffee, infant nutrition, bottled water,
condensed and evaporated milk, ice cream, as well as chocolate and malt
drinks, and culinary. The Group is also a co-leader in pet care.

The Company is committed to delivering shareholder value through

sustainable, capital efficient and profitable long-term growth. Over the past
years it has concentrated on furthering organic growth and performance
improvement.

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Born in Germany, as a young man Heinrich Nestle moved to a French-

speaking area of Switzerland, where he changed his name to the more
French-sounding Henri Nestlé. Working as a pharmacist's apprentice, he
became concerned about infant mortality, and created a source of
nourishment for babies who are allergic to mother's milk. After his 

  -- a dry mixture of cow's milk, sugar, and chemically-altered wheat
flour -- saved an infant's life in 1867, Nestlé began marketing the first
commercially-made infant formula. He retired in 1874, only seven years
after founding his company, and Nestlé's chocolates and candies, coffees

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and seasonings, frozen foods and pet foods and dozens of other products
were all added after the founder's death.

Ironically, Nestlé's first product has become its most controversial. Nestlé
(the corporation, not the man) has been criticized for marketing infant
formula in third-world nations, where the "just add water" instructions are
dangerous because local water frequently carries disease, and where poor
and uneducated parents might not understand that unless an infant is
intolerant of mother's milk, breastfeeding is a healthier choice than any
manufactured formula.

r
 
 
  

Today, Nestlé SA is the world's largest Food and Beverages Company, and a
global leader in health, nutrition and wellness. Consumers around the
world, from village squares in Nigeria to the skyscrapers of New York and
Chicago, are united by the Nestlé promise of quality, taste, nutrition and
convenience.
Though headquartered in Vevey, Switzerland, they now have 487 factories
dotted around the globe, employing over 250,000 people in 86 countries.
Their products are available in almost every country.

 

 


The key factor which drove the early history of the enterprise that would
become The Nestlé Company was Henri Nestlé's search for a healthy,
economical alternative to breastfeeding for mothers who could not feed
their infants at the breast. Nestléǯs first product was called Farine Lactée
(Dzcorn flour grueldz in French) Henri Nestlé. Nestlé's first customer was a
premature infant who could tolerate neither his mother's milk nor any of
the conventional substitutes, and had been given up for lost by local
physicians.

People quickly recognized the value of the new product, after Nestlé's new
formula saved the child's life and within a few years, Farine Lactée Nestlé
was being marketed in much of Europe.

The Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans

Charles and George Page, broadened its product line in the mid-1870s to
include cheese and infant formulas. The Nestlé Company, which had been
purchased from Henri Nestlé by Jules Monnerat in 1874, responded by

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launching a condensed milk product of its own. The two companies

remained fierce competitors until their merger in 1905.

Some other important firsts occurred during those years. In 1875 Vevey
resident Daniel Peter figured out how to combine milk and cocoa powder
to create milk chocolate. Peter, a friend and neighbor of Henri Nestlé,
started a company that quickly became the world's leading maker of
chocolate and later merged with

Nestlé. In 1882 Swiss miller Julius Maggi created a food product utilizing
legumes that was quick to prepare and easy to digest.

His instant pea and bean soups helped launch Maggi & Company.. 


The Company formed by the 1905 merger was called the Nestlé and Anglo-
Swiss Milk Company. By the early 1900s, the Company was operating
factories in the United States, Britain, Germany and Spain. In 1904, Nestlé
added chocolate to its range of food products after reaching an agreement
with the Swiss General Chocolate Company.

Condensed-milk exports increased rapidly as the Company replaced sales

agents with local subsidiary companies. In 1907, the Company began full-
scale manufacturing in Australia, its second-largest export market.
Warehouses were built in Singapore, Hong Kong, and Bombay to supply the
rapidly growing Asian markets.

Most production facilities remained in Europe, however, and the onset of

World War I brought severe disruptions. Acquiring raw materials and
distributing products became increasingly difficult. Fresh-milk shortages
throughout Europe forced factories to sell almost all their supplies to meet
the needs of local towns. Nevertheless, the war created tremendous new
demand for dairy products, largely in the form of government contracts. To
keep up, Nestlé purchased several existing factories in the United States. By
war's end, the Company had 40 factories, and its world production had
more than doubled since 1914.






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The end of World War I brought with it a crisis for Nestlé. Government
contracts
dried up following the cessation of hostilities, and civilian consumers who
had grown accustomed to condensed and powdered milk during the war
switched back to fresh milk when

It became available again. In 1921, the Company recorded its first loss.
Nestlé's management responded quickly, bringing in Swiss banking expert
Louis Dapples to reorganize the Company.


The effects of the onset of World War II were felt immediately by
Nestlé. Profits dropped from $20 million in 1938 to $6 million in 1939.

Neutral Switzerland became increasingly isolated in a Europe at war, and

the Company transferred many of its executives to offices in Stamford,

The first truly global conflict ended forever the traditional Company
structure. To overcome distribution problems in Europe and Asia, factories
were established in developing countries, particularly in Latin America.

Ironically, World War II helped speed the introduction of the Company's

newest product, Nescafé. After the United States entered the war, Nescafé
became a staple beverage of American servicemen serving in Europe and
Asia. Annual production levels reached one million cases by 1943.

As in World War I, production and sales rose in the wartime economy:

Nestlé's total sales jumped from $100 million in 1938 to $225 million in
1945. As the end of the war approached, Nestlé executives found
themselves unexpectedly heading up a worldwide coffee concern, as well a
company built upon Nestlé's more traditional businesses.


The close of World War II marked the beginning of the most dynamic phase
of Nestlé's history. Throughout this period, Nestlé's growth was based on
its policy of diversifying within the food sector to meet the needs of
consumers. Dozens of new products were added as growth within the
Company accelerated and outside companies were acquired.

In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi

seasonings and soups, becoming Nestlé Alimentana Company. The

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acquisition of Crosse & Blackwell, the British manufacturer of preserves

and canned foods, followed in 1960, as did the purchase of Findus frozen
foods (1963), Libby's fruit juices (1971) and Stouffer's frozen foods (1973).

Meanwhile, Nescafé continued its astonishing rise. From 1950 to 1959,

sales of instant coffee nearly tripled, and from 1960 to 1974, they
quadrupled.


After the agreement with L'Oréal in 1974, Nestlé's overall position changed
rapidly. For the first time since the 1920s, the Company's economic
situation deteriorated as the price of oil rose and growth in the
industrialized countries slowed. In addition, foreign exchange rates
deteriorated with the French franc, dollar, pound sterling, and mark all
losing value relative to the Swiss franc. Finally, between 1975 and 1977,
the price of coffee beans quadrupled, and the price of cocoa tripled. As in
1921, the Company was forced to respond quickly to a radically changed
marketplace.

Nestlé's rapid growth in the developing world partially offset a slowdown

in the Company's traditional markets, but it also carried with it the risks
associated with unstable political and economic conditions. To maintain a
balance, Nestlé made its second venture outside the food industry by
acquiring Alcon Laboratories, Inc., a U.S. manufacturer of pharmaceutical
and ophthalmic products.

Taking such a step in a time of increased competition and shrinking profit

margins required boldness and vision. Even more than the L'Oréal move,
Alcon represented a leap into unknown waters for Nestlé. But, a as Group
Chairman Pierre Liotard-Vogt noted, "Today we find ourselves with a very
wide range of activities, all of which have one thing in common: they all
contribute to satisfying the requirements of the human body in various
ways."


Under a new Chief Executive Officer, Helmut Maucher, Nestlé approached
the 1980s with a renewed flexibility and determination to evolve. The
Company's strategy for this period was twofold: improve its financial
situation through internal adjustments and divestments, and continue its
policy of strategic acquisitions.

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Thus, between 1980 and 1984, the Company divested a number of non-
strategic or unprofitable businesses. At the same time, Nestlé managed to
put an end to a serious controversy over its marketing of infant formula in
the Third World. This debate had led to a boycott of Nestlé products by
certain lay and religious organizations. This issue is still alive in some
quarters, but there is no longer any significant boycott activity.

In 1984, Nestlé's improved bottom line allowed the Company to launch a

new round of acquisitions, including a public offer of $3 billion for the
American food.


The first half of the 1990s proved to be a favorable time for Nestlé: trade
barriers crumbled and world economic markets developed into a series of
more or less integrated trading areas. The opening of Central and Eastern
Europe, as well as China, and a general trend towards liberalization of
direct foreign investment was good news for a company with interests as
far-flung and diverse as Nestlé. While progress since then has not been as
encouraging, the overall trends remain positive.

In July 2000, Nestlé launched a Group-wide initiative called GLOBE (Global

Business Excellence), aimed at harmonizing and simplifying business
process architecture; enabling Nestlé to realize the advantages of a global
leader while minimizing the drawbacks of size.

There were two major acquisitions in North America in 2002: in July,

Nestlé announced that the U.S. ice cream business was to be merged into
Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef
America, Inc. , a leading U.S.-based hand-held frozen food product business.

Also in 2002, the joint venture Dairy Partners Americas was set up with
Fonterra; and Laboratoires innéov was set up, another joint venture, this
time with L'Oréal.


The year 2003 started well with the acquisition of Mövenpick Ice Cream,
enhancing Nestlé's position as one of the world market leaders in this
product category. The years that followed saw consistent business growth
through innovation and renovation of the products.

In 2006, Jenny Craig, the USA weight management company and Uncle
Toby's were acquired as well as Delta Ice Cream.
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Nestlé made three significant acquisitions in 2007. The first was Novartis
Medical Nutrition which put Nestlé in a a strong number two position
globally for healthcare nutrition. Gerber, the iconic US baby food brand was
the second acquisition and the third was the Swiss water company, Sources
Minérales Henniez S.A.

The end of 2007 was marked by a strategic partnership with the Brussels-
based luxury chocolate maker Pierre Marcolini.

 

  




×c The Nestlé logo was launched by Henri Nestlé in 1868 on the basis of
the meaning of his name in German, i.e. little nest, and of his family
emblem children.

×c Henri obtained a 15-year French patent for his logo in 1868. After he
retired, it was registered in Vevey in 1875 by the new owners of his
company.

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×c In 1938, the traditional nest design was combined with the "Nestlé"
name to form what is called the combined mark.

×c In 1966 the design was simplified.

×c In 1988, the worm in the mother bird's beak was removed and the
fledglings became two instead of three. It is said that it was meant to
better illustrate the activities of the company, no longer active only in
nutrition, and to reflect the average modern family of two.

×c The logo we know now has just been simplified. The tree is supposed
to represent an oak and the birdǯs thrushes.





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Nestlé is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

×c Nestlé's business objective is to manufacture and market the

Company's products in such a way as to create value that can be
sustained over the long term for shareholders, employees,
consumers, and business partners.
×c Nestlé does not favor short-term profit at the expense of successful
longterm business development.
×c Nestlé recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the Company behind
brands in which they place their trust, and that without its
consumers the Company would not exist.
×c Nestlé believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas,
additional guidance to staff in the form of voluntary business
principles is beneficial in order to ensure that the highest standards
are met throughout the organization.
×c Nestlé is conscious of the fact that the success of a corporation is a
reflection of the professionalism, conduct and the responsible
attitude of its management and employees. Therefore recruitment of
the right people and ongoing training and development are crucial.
×c Nestlé continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.



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×c Nestle is now the world's largest food company.

×c It is present on all five continents.
×c has an annual turnover of 74.7 billion Swiss francs.
×c It operates 500 factories in approximately 100 countries.
×c Employs about 231,000 people the world over.
×c It offers over 8,000 products to millions of consumers universally.

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DzNestléǯs aim is to meet the various needs of the consumer everyday by

marketing and selling foods of a consistently high quality.dz

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DzWe strive to bring consumers foods that are safe, of high quality and
provide optimal nutrient to meet physiological needs. Nestle helps provide
selections for all individual taste and lifestyle preferences.dz

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×c Nestléǯs business objective is to manufacture and market the

Companyǯs products in such a way as to create value that can be
sustained over the long term for shareholders, employees,
consumers, and business partners.
×c Nestlé does not favor short-term profit at the expense of successful
long-term business development.
×c Nestlé recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the Company behind
brands in which they place their trust and that without its consumers
the Company would not exist.
×c Nestlé believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas,
additional guidance to staff in the form of voluntary business
principles is beneficial in order to ensure that the highest standards
are met throughout the organization.
×c Nestlé is conscious of the fact that the success of a corporation is a
reflection of the professionalism, conduct and the responsible
attitude of its management and employees. Therefore recruitment of
the right people and ongoing training and development are crucial.







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Ôè 

×c A prerequisite for dealing with people is respect and trust.
×c Transparency and honesty in dealing with people are a sine qua non
for efficient communication. This is complemented by open dialogue
with the purpose of sharing competencies and boosting creativity.
×c To communicate is not only to inform; it is also to listen and to
engage in dialogue.
×c The willingness to cooperate, to help others and to learn is a required
basis for advancement and promotion within our company.

" 

 

Vc Nestlé's business objective: to create value that can be sustained over

the long term for shareholders, employees, consumers, and business
partners.

Vc Nestlé does not favor short-term profit at the expense of successful

long-term business development.

Vc Nestlé recognizes that its consumers have a sincere and legitimate

interest in the behavior, beliefs and actions of the Company and
without its consumers the Company would not exist.

Vc Nestlé believes that, legislation and additional guidance to staff is

beneficial in order to ensure highest standards.

Vc Nestlé is conscious about its reflection of the professionalism,

conduct and the responsible attitude of its management and
employees

Vc Nestlé continues to maintain its commitment to follow and respect all

applicable local laws in each of its markets.





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Nestléǯs relationship with India dates back to 1912, when it began trading
as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited,
importing and selling finished products in the Indian market.

After Indiaǯs independence in 1947, the economic policies of the Indian

Government emphazised the need for local production. Nestlé responded
to Indiaǯs aspirations by forming a company in India and set up its first
factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to
develop the milk economy. Progress in Moga required the introduction of
Nestléǯs Agricultural Services to educate, advise and help the farmer in a
variety of aspects. From increasing 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. Nestlé set up
milk collection centres that would not only ensure prompt collection and
pay fair prices, but also instil amongst the community, a confidence in the
dairy business. Progress involved 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 thriving hub
of industrial activity.

Nestlé has been a partner in India's growth for over nine decades now and
has built a very special relationship of trust and commitment with the
people of India. The Company's activities in India have facilitated direct and
indirect employment and provides 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

changing lifestyles of India and anticipate consumer needs in order to
provide Taste, Nutrition, Health and Wellness through its product offerings.
The culture of innovation and renovation within the Company and access to
the Nestlé Group's proprietary technology/Brands expertise and the
extensive centralized Research and Development facilities gives it a distinct
advantage in these efforts. It helps the Company to create value that can be
sustained over the long term by offering consumers a wide variety of high

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quality, safe food products at affordable prices.

Nestlé India manufactures products of truly international quality under

internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR,
MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the
Company has also introduced products of daily consumption and use such
as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and
NESTLÉ Jeera Raita.

Nestlé India is a responsible organization and facilitates initiatives that

help to improve the quality of life in the communities where it operates.

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Nestle India Limited has grown over the years into the most desired brand
in the food and beverage sector in India. The company has succeeded in
meeting the expectations of the Indian government in bringing a marked
change in the milk industry through its suggestion on latest dairy farming
techniques and upkeep of cows to improve the milk yield. Nestle India
Limited gave directions to the farmers in incorporating the advanced
technological methods with regard to crop maintenance and irrigation. The
company proposed the set up of centers that not only catered to the storing
and selling of milk, but also maintained contacts with the farmers.

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Nestle India Limited initiated its workings in India with the Moga unit in
Punjab in 1961; succeeded by the Choladi unit located in the state of Tamil
Nadu. The Moga unit dealt entirely with the proper management of dairy
products whereas the Choladi unit diverted its interests to the tea industry.
The main purpose behind the set up of Choladi unit was to treat the tea
crop to produce soluble tea. Nestle India Limited is also the proud of owner
of Nanjangud unit in Karnataka; Samalkha unit in Haryana; Ponda and
Bicholim units in Goa; and Pant Nagar unit in Uttarakhand.

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Nestle India Limited has spread its wings to significant areas within the
food and beverage industry. It has various products like chocolates, infant
food, confectionery, prepared dishes and so on. The company produces
delicious chocolates of varied tastes, quality, make, and ingredients to
allure the taste buds to the level of indulgence with such widely known
chocolates as Milky Bar and Kit Kat, which differ in their hues. The
beverage section offers refreshing Nescafe, and health drinks such as Milo,
Nestle Milk and the mouth-watering condensed milk, known as Milkmaid.
Maggi noodles, Nestle Jeera Raita fall under the category of prepared
dishes, whereas the latest additions of Nestle India like Nestle Fresh "n"
Natural Dahi and Nestle Slim Milk have won million hearts with their
exquisite flavours.

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Nestle India's popularity is visible in its financial figures published for the
second quarter starting from April and ending in June 2007. The net profit
for this quarter records a growth of 18.1%, amounting to Rs. 95.7crores,
and the net sales figure marks a rise of 23.2%; whereas the exports
delineate improvement by 15.6 %, which is calculated as Rs. 82crores. The
net domestic sales have also grown at a very fast pace to Rs. 756.9 crores,
showing a jump of approximately 24 %, when compared with the financial
figures of the same period, that is, from April to June in the previous year.

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At Nestlé India we make big investment in people, they are our top priority.
For us, our people are the key drivers for our success. Nestlé India provides
its employees a dynamic professional environment bound by one spirit,ǯ
The Nestlé Spirit' and that makes Nestlé India a great place to work.

Nestlé India is a vibrant company enhancing the quality of life of its

consumers by offering them world class food products driven by Nutrition,
Health and Wellness. At Nestlé India your integrity, professional skills and
performance is what matters. We trust our people and believe in giving
early responsibilities and encourage them to actively contribute to the log
term sustainable growth of the business.

At Nestlé India we believe in building leaders who can take on challenges,

innovate and write success stories. Nurturing starts from day one on the
job. Business dynamics and need directed training programs offer
employees with opportunities to acquire and develop desired functional,
people management and decision making skills enabling success at work.

As we achieve milestone after milestones we invite you to be part of this

exciting journey and assure you that the exposure and experience would be
unparalleled.


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×c Productǯs growth through innovation and renovation (while

maintaining a balance in geographic activities and product lines).
×c Long-term potential
×c Build business based on sound human values and principles.
×c Long-term commitment to the health and well being of people in
every country in the scope of their operations.
×c Business should be conducted by adhering to the values and
management principles of the organization.

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×c Low cost - less price transparency is followed.

×c Differentiation - to reduce the risk of complexity of supply chain and
lower attractiveness for discounters.

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×c Research and development (R&D),

×c Its product range
×c Global reach and
×c 280,000-strong workforce

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×c Nutrition
×c Emerging consumers
×c Premium goods and
×c DzOut-of-homedz goods.

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Nestlé Agricultural Services has used the experience gained by Nestlé in

different parts of the world to set up a system of direct and efficient contact
with the farmers in Moga. Company veterinarians and agronomists
supervise the milk routes and advise farmers on various issues
including on the most appropriate feed for the herds and milk storage
facilities have been set up in close location to the farmers. While veterinary
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services are provided free of charge, medicines are provided at wholesale

cost. The costs are adjusted against subsequent milk payments to the
farmers. The company assists farmers in artificial insemination
programmes for their cattle, subsidises their purchase of milking machines
and helps them in procuring loans.

During the past few years, the company has invested approximately Rs.500
million for the installation of farm cooling tanks, chilling centres, ensuring
veterinary aid, breed improvement, dairy development projects and other
related activities. Aside of this, the company has also spent approximately
Rs.300 million in the past few years in procuring goods on behalf of the
farmers, to be supplied at wholesale prices.

Furthermore, Nestlé India is continuously

implementing initiatives that improve the
quality of life of the communities around
its factories in order to further strengthen
the trust between Nestlé India and the
community.

 
 
&&


Nestlé India has always focused on long term, sustainable and profitable
growth and helped communities around its factories to improve their
quality of life in a similar manner. Nestlé Agricultural Services has used the
experience gained by Nestlé across the 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 various
issues including proper feed for the herds. Milk storage facilities have been
set up close to the farmers. Veterinary services are provided free, and
medicines provided at wholesale cost. The company assists farmers in
artificial insemination programs for their cattle, provides subsidy and helps
them in procuring loans. For more on Nestlé Agricultural Services.
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Water is a scarce resource. In India, availability of clean drinking water
is a major concern for many communities. Almost 200 million people do
not have access to clean drinking water. Nestlé India is committed to
improving the situation and believes that the first step is to create
awareness in the communities around its factories. A key focus area of
our Corporate initiatives is to help provide Clean Drinking Water and
educate children in schools to conserve this scarce resource.

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Nestlé supports initiatives to create awareness about the right to

education and encourages the communities around its factories to send
their children to school. Nestlé India employees have developed a
special play 'Let Us Go to School' for this purpose. This has been staged
amongst the communities around our factories, and its recordings
screened at smaller gatherings along the milk routes.

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The Company also recognizes the active role that village women play in
adopting good dairying practices in dairy farms and regularly conduct
special programs that help them.

Nestlé India supports local schools, helps in the maintenance of public

parks and green belts, facilitates blood donation camps and health
awareness programs. The key messages of conservation, hygiene, health
and wellness are progressively built into the communities where the
Company is present. All these initiatives strengthen the bond between
Nestlé India and the community.

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$è  $
 
!$&  

Mc Training and development on good farm Practices

Mc Regular audits of farmers to ensure that good farm practices are

implemented & maintained

Mc Testing of milk at collection and cooling Centers

Mc The financial well-being of producers

Mc Veterinary & field staff offering round the clock technical services

Mc Veterinary medicines are provided to farmers

Mc Artificial insemination centers

Mc highly pedigreed bulls are provided

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STRENGTHS

×c Parent support - Nestle India has a strong support from its parent
company, which is the worldǯs largest processed food and beverage
company, with a presence in almost every country. The company has
access to the parentǯs hugely successful global folio of products and
brands.
×c Brand strength - In India, Nestle has some very strong brands like
Nescafe, Maggi and Cerelac. These brands are almost generic to their
product categories.

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×c Product innovation - The Company has been continuously

introducing new products for its Indian patrons on a frequent basis,
thus expanding its product offerings.
×c Operated factories in 77 countries (all six continents), a truly global
company.
×c Considered the innovation leader in the global food and nutrition
sector(3500 scientist in company R&D network)
×c Low cost operators (beat the competition by producing low cost
products, edging ahead with low operating costs)
×c Offering thousands of local products.
×c Have a great CEO, Peter Brabeck, and a very strong workforce.

WEAKNESSES

×c Exports Ȃ The companyǯs exports stood at Rs 2,571 m at the end of

2003 (11% of revenues) and continue to grow at a decent pace. But a
major portion of this comprises of Coffee (around 67% of the exports
were that of Nescafe instant to Russia). This constitutes a big chunk
of the total exports to a single location. Historically, Russia has been a
very volatile market for Nestle, and its overall performance takes a
hit often due to this factor.

×c Supply chain - The Company has a complex supply chain

management and the main issue for Nestle India is traceability. The
food industry requires high standards of hygiene, quality of edible
inputs and personnel. The fragmented nature of the Indian market
place complicates things more.
×c Some of their product were positioned as too scientific, and
consumers didnǯt quite understand (i.e. LC-1 was a food and not a
drug)

OPPORTUNITIES

×c Expansion - The Company has the potential to expand to smaller

towns and other geographies. Existing markets are not fully tapped
and the company can increase presence by penetrating further. With

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India's demographic profile changing in favor of the consuming class,

the per capita consumption of most FMCG products is likely to grow.
Nestle will have the inherent advantage of this trend.
×c Product offerings - The Company has the option to expand its
product folio by introducing more brands which its parents are
famed for like breakfast cereals, Smarties Chocolates, Carnation, etc.
×c Global hub - Since manufacturing of some products is cheaper in
India than in other South East Asian countries, Nestle India could
become an export hub for the parent in certain product categories.
×c Health-based products are becoming more popular in the world,
including in the United States
×c Unaffected by current economic conditions (its share of the UK
confectionery market rise to 15.6 per cent with a 0.5 per cent growth
this year)

THREATS

×c Competition - The Company faces immense competition from the

organized as well as the unorganized sectors. Off late, to liberalize its
trade and investment policies to enable the country to better function
in the globalised economy, the Indian Government has reduced the
import duty of food segments thus intensifying the battle.
×c Changing consumer trends - Trend of increased consumer spends on
consumer durables resulting in lower spending on FMCG products. In
the past 2-3 years, the performance of the FMCG sector has been
lackluster, despite the economy growing at a decent pace. Although,
off late the situation has been improving, the dependence on
monsoon is very high.
×c Sectoral woes - Rising prices of raw materials and fuels, and inturn,
increasing packaging and manufacturing costs. But the companiesǯ
may not be able to pass on the full burden of these onto the
customers.
×c Some markets they are entering are already mature
×c Global competitors.
×c There are intense competitions in the United States, especially yogurt
market (General Mills)

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Nestléǯs Philosophy on Code of Governance

Nestlé India Ltd. is a subsidiary of Nestlé S.A. of Switzerland and over the
years it has followed best practice of Corporate Governance and adhered to
practices laid down by the Nestlé Group.

Nestlé Indiaǯs business objective and that if its management and employees
is to manufacture and market the Companyǯs products in such a way as to
create value that can be sustained over the long term for consumers,
shareholders, employees, business partners and the national economy.
Nestlé India is conscious of the fact that the success of a corporation is a
reflection of the professionalism, conduct and ethical values of its
management and employees. In addition to compliance with regulatory
requirements, Nestlé India endeavors to ensure that highest standards of
ethical and responsible conduct are met throughout the organization.

The two most significant documents from the Nestlé Group, which define
the standard of behavior of Nestlé India, are DzNestle Corporate Business
Principlesdz and DzNestlé Management and Leadership Principlesdz.




The Nestlé policy is to hire staff with personal attitudes and professional
skills enabling them to develop a long-term relationship with the Company.
Therefore the potential for professional development is an essential
standard for recruitment.
Each new member joining Nestlé is to become a participant in developing a
sustainable quality culture which implies a commitment to the organization
and a sense for continuous improvement leaving no room for complacency.
Therefore, and in view of the importance of these Nestlé values, special
attention will be paid to the matching between a candidate's values and the
Company culture.




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×c Administrative
×c Training
×c Recruiting
×c Development
×c Labor Relations
×c Org Development
×c Compensation and Internal Communication


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Campus Recruitment Programs

Internship Programs

For graduate students, Nestle offer a summer internship in brand

management for MBA students. Marketing Interns are challenged with
leading integral aspects of our brands' marketing plans. This highly
competitive program could also give you the opportunity to transition into
a full-time position.

Professional Development Programs

Adequate training programs are developed at the level of each operating

company capitalizing on the availability of local, regional or global
resources of the Group. It is the responsibility of HR staff to assist the
management in the elaboration of training programs. Following type of
programs are conducted at Nestle:

Ãc Training programs enhancing the language skills of the employees.

Ãc Training programs aimed at developing and sharing best practices of
the various management disciplines practiced in the Group. They also
strive to strengthen corporate cohesion as well as to promote
networking throughout the Group.
Ãc E-learning programs as a complement to or a substitute for formal
training programs.

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The following HR practices take place at Nestle:

×c Recruitment and Training

×c Performance Management
×c Rewards and Incentives
×c Benefits
×c Employee Relations
×c Change Management
×c Safety and Health

The Nestle Operational Safety, Health and Risk-Management Strategy

document illustrates that:
- Nestle is dedicated to safe & healthy work environment.
- Regular safety assessments & audits take place by internal &
external bodies.

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