Nestle Milkpak Limited

Annual Report 2000 Contents

Directors' Report to the Shareholders Performance at a Glance Notice of Annual General Meeting General Information Management Organisation Company Directory Regional Sales Offices Group History About Nestle S.A. Business Review Milk Collection Production Marketing Exports Auditors' Report Balance Sheet Profit & Loss Account Cash Flow Statement Notes to the Accounts Pattern of Share-holding

Directors' Report to the Shareholders

The Directors are pleased to submit their Annual Report along with the audited financial statements of the company for the year ended December 31, 2000. OPERATING RESULTS The year 2000 offered no relief from the difficult economic environment that had badly impacted the country in 1999. To make matters worse, some major disruptions in the trade affected our retailing activities over several months in the form of strikes against the taxation policies of the government. However, despite this difficult business climate, we can reasonably consider the year 2000 as another successful year for Nestle Milkpak Ltd. The company achieved a double-digit (15.5%) real internal growth for the third consecutive year, driven by a strong performance on our milks category and by the successful development of some more recently launched products: soluble coffees and water. Total sales for the year reached Rs.6.57 bio. showing a growth of 14% over the previous year. After tax profit for the year was stable in absolute. terms at Rs.272.4 mio, owing to the difficulties faced in increasing our consumer selling prices and to a higher effective tax rate. MARKETING UHT milk grew at a faster pace than the industry, mainly due to price stability and

aggressive media and non-media activities. NESTLE Plain Yogurt was launched on November 1, 2000 in the biggest branded yogurt market - Lahore, supported by a fully integrated marketing campaign. The product was very well received by the consumers. We continued to expand our water business. While NESTLE PURE LIFE retained its significant market share in the retail sector, we launched the Jumbo Service (5-gallon bottles for home and office consumption) in July 2000 in Lahore, thereby entering a very promising market segment. The results are very positive and the market is developing fast. In addition, significant progress was achieved across the broad range of our business activities such as Information systems, logistics, sales and distribution structure where strong distribution and effective merchandising made a major contribution in achieving the high rate of growth as mentioned above. MILK COLLECTION As regards fresh milk, the year under review saw excellent progression. The quantity of milk collected increased by over 12%, while the quality improved considerably, thanks to the substantial investments made in chilling lines over the last years. DIVIDEND Considering these satisfactory results and the confidence that it places in the continuous development of this company, the Board of Directors has recommended to pay a final dividend of 45% (Rs. 4.50 per share) in addition to the interim dividend of 20% (Rs. 2.00 per share) paid in August, 2000. APPROPRIATIONS Rupees Mio. Net profit for the year 272.4 Un-appropriated profit brought forward 160.3 ---------------432.7 Appropriations Interim dividend Rs. 2.00 per share (20%) Final dividend Rs. 4.50 per share (45%) 203.7 ---------------294.2 ---------------Un-appropriated profit carried forward 138.5 ========== PERSONNEL Relationship with the staff (total staff as at 31.12.2000: 1.149 as against 1.097 at the end of 1999) specially the workers, remained cordial. All achievements made during the period under report were only possible due to a great deal of dedicated efforts and team work by the company's staff. The directors take this opportunity to thank all of them for 90.5

their hard work and commitment. FUTURE OUTLOOK We feel that economic difficulties currently faced by the country are likely to continue in the year 2001 and that much of the un-certainty will remain. In-spite of this difficult business environment, we are confident to maintain our growth momentum and perform satisfactorily in the coming year. We shall continue to focus on a long-term view of the business, quality consciousness and operational efficiency through innovation and renovation.

FOR AND BEHALF OF THE BOARD OF DIRECTORS

FRIEDRICH G. MAHLER Lahore: March 15, 2001 Chief Executive

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 23rd Annual General Meeting of Nestle Milkpak Ltd., will be held at 10.00 a.m. on Monday, April 30, 2001 at the Company Office, at 304Upper Mall, Lahore to transact the following business: ORDINARY BUSINESS 1. To confirm the minutes of the Annual General Meeting held on April 17, 2000. 2. To receive, consider and approve the Audited Accounts of the Company for the year ended December 31, 2000 together with the Directors' report thereon. 3. To appoint Auditors of the Company and fix their remuneration. 4. To approve dividend. The Directors have recommended final dividend of 45% i.e. Rs. 4.50 per share. 5. To elect seven Directors of the Company for a period of three years commencing from June 27, 2001 in accordance with the provision of Section 178 of the Companies Ordinance 1984 in place of the following retiring Directors. I. Mr. M.W.O. Garrett II. Mr. Marcel Fischli III. Mr. D. Dupont IV. Mr. Friedrich G. Mahler V. Syed Baber Ali VI. Syed Yawar Ali VII. Syed Hyder Ali SPECIAL BUSINESS 6. To pass the following resolutions as a special resolution: RESOLVED THAT the consent of the shareholders be and is hereby accorded:

(i) to approve the investment made in purchasing/acquiring 80% fully paid ordinary shares of Rs. 10/- each at a value of Rs. 44.76 million of Universal Aqua (Pvt.) Limited. (ii) to approve the loan of Rs. 27.1 million granted to Universal Aqua (Pvt.) Limited. 7. To transact any other business with permission of the Chair. BY ORDER OF THE BOARD

(PHILIPPE BLONDIAUX) Lahore: 09th April 2001 Company Secretary NOTES: 1. Share Transfer Books of the Company will remain closed from 23/04/2001 to 03/04/2001 (both days inclusive) for the purpose of Annual General Meeting and to determine entitlement for dividend. 2. A member entitled to attend and vote at the General Meeting is entitled to appoint another member as proxy to attend and vote instead of him/her. 3. The instrument appointing a proxy must be received at the Registered Office of the Company at 308-Upper Mall, Lahore, not later than forty-eight (48) hours before the Meeting. 4. Shareholders are requested to notify the change of address, if any, immediately.

STATEMENT UNDER SECTION 160 (b) OF THE COMPANIES ORDINANCE, 1984

The following information is tendered to the shareholders in this behalf. (a) Equity Investment: i. Universal Aqua (Pvt.) Limited is otherwise an unrelated company (i.e. not an associated company) and no director or shareholder of Nestle Milkpak Limited has any interest in it. ii. Nestle Milkpak Limited has acquired 80% fully paid ordinary shares (360,240 shares) of face value Rs.10/- each, at the price of Rs. 124.25 per share. iii. The breakup value of the shares as at June 30,2000 is Rs.-9.70, and the earning per share is Rs.-4.80 (1999: Rs.-14.90). iv. Nestle Milkpak Limited has used its own funds to make the acquisition. v. The investment has been made on long term basis and is expected to be beneficial in respect of the water business.

vi. No director or any relative of a director is interested in the investment. (b) Loan i. A loan of Rs. 27.1 million has been given as part of the transaction to acquire shares. This loan replaces the loan given by the sponsors from whom shares have been acquired. ii. Apart from this loan, Universal Aqua (Pvt.) Ltd. has not availed any other financing. iii. No collateral is being obtained as Nestle Milkpak Limited is the only creditor and also 80% shareholder of the company. iv. The mark-up rate being charged is floating rate of SBP discount + 1% p.a. v. Nestle Milkpak Limited has used its own funds to make the loan. vi. The loan is expected to be repaid over a period of 2 years. vii. The loan has been extended as part of the transaction for acquisition of shares for the future benefit of Nestle Milkpak Limited and the shareholders.

Management
Board of Directors Syed Yawar Ali Friedrich G. Mahler Syed Babar Ali M.W.O. Garrett Marcel Fischli D. Dupont Syed Hyder Ali Company Secretary Philippe Blondiaux The Management Team Friedrich G. Mahler Philippe Blondiaux Olivier Desponds Nimal Koswanage Managing Director Finance & Control Manager Marketing Manager Factory Manager Chairman Managing Director

Organisation
Head Office Factories Regional Sales Offices Milk Collection Centres

Company Directory
Registered & Corporate Office 308 - Upper Mall, Lahore PABX: 5757082-95 Fax: 5711820

Factories

Sheikhupura 29th Kilometer, Lahore - Sheikhupura Road Sheikhupura, Punjab, Pakistan Phone: (042) 6369321 - 26 & 7228300 Fax: (042) 6368710 Kabirwala Khanewal- Kabirwala Road, Kabirwala District Khanewal, Punjab, Pakistan Phone: (0692) 53168 & (06512) 411433 Fax: (0692) 53169 & (06512) 411432

Auditors Legal Advisors Bankers

A.F. Ferguson & Co. (Chartered Accountants) Cheema & Ibrahim (Advocates) ABN Amro Bank Standard Chartered Grindlays Bank Ltd. Bank of Tokyo-Mitsubishi, Ltd. Citibank N.A. Credit Agricole Indosuez Deutsche Bank A.G. Habib Bank Ltd. Muslim Commercial Bank Ltd. Standard Chartered Bank

Regional Sales Offices

Karachi F - 77/1, Block 7, Clifton, KDA Scheme 5, Karachi, Sind, Pakistan. Phone: (021) 5833935-6 Fax: (021) 5833937 178, Block C, Unit 2 Latifabad, Hyderabad, Sind, Pakistan Phone: (0221) 860403 Fax: (0221) 863202 29-B, Main Gulberg, Lahore, Punjab, Pakistan Phone: (042) 5754335-6, 5752583 Fax: (042) 5761491 Surij Miani Road, Chungi No.1, Multan, Punjab, Pakistan Phone: (061) 515061 Fax: (061) 515057 House No. 24-Y-103 Madina Town, Faisalabad, Punjab, Pakistan Phone: (041) 546993, 734538 Fax: (041) 543538 23. D.C. Road. Gujranwala, Punjab, Pakistan. Phone: (0431) 256320 Fax: (0431) 256320

Hyderabad

Lahore

Multan

Faisalabad

Gujranwala

Peshawar

201,2nd Floor, City Tower, Jamrud Road, B Block, Peshawar, N.W.F.P., Pakistan Phone: (091) 840859, 842415 Fax: (091) 45516 63 B - D, Chaman Housing Scheme, Opposite Askari Park Quetta, Baluchistan, Pakistan. Phone: (081) 834887 Fax: (081) 822297 74-W, Yaseen Plaza, 1st Floor, Blue Area, Islamabad, Pakistan Phone: (051) 2271874-5, 2824328 Fax: (051) 2821899

Quetta

Islamabad

Group History
The Nestle Story Nestle S.A., the present Switzerland based international food group, originally consisted of two companies and two products: Henri Nestle and his baby food in Vevey, and the Anglo-Swiss Condensed Milk Company and its condensed milk in Cham, both in Switzerland. In 1866 the Page Brothers from the United States set up a new industry in Cham, making condensed milk from a raw material that was available in abundance in the region. In 1867 Henri Nestle, a chemist in Vevey, created a milk and cereal based food which promptly saved the life of a baby which its mother could not feed. The companies competed vigorously until 1905, when they merged and became the starting point of the present food group. Dynamic Expansion The history of Nestle includes the development of many different products as well as acquisitions, mergers and the purchasing of shares in companies, mainly abroad. Over the course of the years, this enabled it to broaden its range of products and diversify its operations, while at the same time strengthening the economic foundations of the company. Amongst the most important acquisitions were Carnation in Los Angeles (milk, culinary products and pet foods) and more recently Rowntree Mackintosh in York (chocolate and confectionery), Buitoni in Perugia (pasta) as well as Perrier in France (mineral water). Nestle, which does 98% of its business outside Switzerland, also has interests in non-food sectors, in cosmetics (a large share holding in L'Oreal) and ophthalmic products (acquisition of Alcon Laboratories Inc.) while continuing to give priority to food products.

Nestle Today
Nestle is now the world's largest food company. It is present on all five continents, has an annual turnover of 74.7 billion Swiss francs, runs 509 factories in 83 countries and employs about 231,000 people the world over.

The Company owes its current status to the pioneering spirit inherited from its founders which continues to inspire it, to its concern with quality and to its constant search for new ways of satisfying man's nutritional needs. Wherever possible, it sets up factories locally, employs personnel from the country concerned and relies on indigenous raw materials. Its agricultural services provide assistance to improve the quality and yield of the raw materials it uses. Much attention is devoted to professional training and to the integration of the Company in its economic and social environment. Research & Development Nestle, the world's biggest food Group, is also the global leader in the industry with regard to Research and Development (R&D), No other food company matches the R&D presence of Nestle, with a worldwide network of centres in 17 locations on four continents. No other food company dedicates so many human and financial resources to R&D: an international staff of 3500 engaged in the search for innovative new products and the renovation of existing ones. Year after year, Nestle invests some 800 million Swiss francs into R&D as a major driving force of its double strategy: to strengthen the Company's brands worldwide and to continue to support future longterm growth and competitiveness through innovation and renovation. At the threshold of this new millennium, Nestle's objective is to consolidate and strengthen its leading position at the cutting edge of innovation in the food area, in order to meet the needs and desires of consumers around the world, for pleasure, convenience, health and well being.

Business Review
Milk Collection The core raw material of Nestle Milkpak is milk. Over the last twelve years, the Company's prime concern has been to improve the quality and volume of milk for UHT processing and for other milk based products. Driven by its commitment to quality and having realized that only self collection could eliminate its dependence on poor quality milk available from outside sources, the Company successfully established its own collection system and expanded its operations over a very large milk shed area in Punjab. Owing to this tremendous growth in the volume of an extremely high quality raw milk, Nestle Milkpak now produces a superior quality and better tasting UHT milk, with longer shelf life. Today, Nestle Milkpak can boast of the largest milk collection network in the country, unmatched in size, productivity and efficiency. Milk is collected through a vast network of village milk centers (VMCs), sub-centers and centers. At these centers, chillers have been installed to lower milk temperature to 4C for preventing bacteria development during long hauls to the factories, which are undertaken by a large fleet of specially insulated tankers. In terms of quality, the milk collected by Nestle Milkpak is low in sodium, high in fat and solid-non-fats (SNF) and very low in Total Plate Count (TPC) which, stated simply, means the bacteria count. This was achieved through a comprehensive strategy and sustained efforts to overhaul the milk collection process, intensive education program for the

farmers and the milk collection staff, upgradation of milk loading and transportation system, increase in the chilling capacity and above all, adherence to the highest acceptance standards at all milk collection points, including the factories. As a service to farmers, Nestle Milkpak has established an Extension Service, staffed by qualified veterinary doctors, who assist them in vaccination and treatment of livestock, improved breeding, good animal husbandry practices, provision of high yield fodder seed etc. By taking professional help and guidance to their doorsteps, which they otherwise find difficult to access, coupled with incentives and a good and prompt return for their milk, Nestle Milkpak has created a mutually beneficial relationship with the farmers, which translates into opportunities of economic uplift for the rural population. To promote milk production, Nestle Milkpak is successfully promoting the use of molasses to enrich the fodder and has arranged its distribution to farmers at cost.

Production As a consequence of joint venture arrangement between Nestle S.A. of Switzerland and Milkpak Ltd. in 1988, the existing production facility of Milkpak in Sheikhupura became a part of Nestle Milkpak. The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT milk. By 1988, it had expanded its operation and was also producing butter, cream, desi ghee - all under the brand name of MILKPAK and juice drinks under the brand name FROST. To meet the demands of the large food market that Pakistan offered, Nestle Milkpak reorganized and reinforced the production of existing brands and gave shape to new production lines. The first to come was a milk powder plant, which not only began producing NIDO in 1990 but was also critical to the production of several milk-based products in the future. With the installation of the roller dryer in 1990, the first such product to come was CERELAC - an internationally recognized brand of infant cereal. This was followed by LACTOGEN 1 & 2 in 1991. The year 1992 saw the introduction of tea whitener EVERYDAY and milk powder in bulk packing named GLORIA. MILO and NESLAC came under production in 1994 and MILO RTD in 1995. Local packing of imported coffee under the name of NESCAFE 3 in 1 commenced the same year. In 1996, Nestle Milkpak's first confectionery plant of POLO Mint was installed and the production of NESTLE PURE ORANGE JUICE commenced. Packaging of coffee under the brand name of NESCAFE CLASSIC was undertaken the same year. In 1997 NESTLE WHEAT and two variants of POLO viz. Strawberry and Orange were introduced. In 1998 a substantial capital investment was made to launch several products and install two new state-of-the-art technologies. SWEET TREETS were launched in early 1998. The addition of two flavours of POLO: Blackcurrant and Strong Mint, increased the number of POLO variants to five. A new variant Lemony was added to the range of popular FROST fruit drink flavours and a new 1-liter packing of FROST was introduced. Flavoured milks under the brand FRESH & FRUITY came under production on the new Tetra Filling Machine equipped with the modern "slim" format. MILO RTD and UHT Cream

were also shifted over to this new format. A new flexible confectionery line enabled the manufacture of a wide range of high and low boiled sweets and toffees, including TOFFO and two variants of SOOTHERS' Menthol Eucalyptus and Honey Lemon. Nestle Milkpak also contracted to supply dairy mixes to McDonald's, for its popular soft serves and milk shakes. And to top it all, the most prestigious project, NESTLE PURE LIFE was also commissioned in December. Based on the latest water treatment and bottling technology, this marked the entry of Nestle Milkpak in the Pakistan water market and that of Nestle in the world water market. The expansion of high boiled sweet line continued in 1999 with the introduction of Fruit Drops and BUTTERSCOTCH. The year 2000 saw the production of some exciting products. First came NESCAFE Frothe Original, followed by its two other flavours: Mocha and French Vanilla. NESCAFE Frappe RTD was to come next. The fruit juice range was expanded by the production of Mango and OrangeMango Mix. On the confectionery side, Tutti Fruiti was added under the umbrella of POLO and Wild Cherry was added to the SOOTHERS range. The success of NESTLE PURE LIFE in PET bottles encouraged the commissioning of 5-gallon bottles production line for home and office in June. And the last product line of the year to be commissioned in November was that of NESTLE Plain Yogurt, a high quality product with special Stay-Fresh Seal. To meet the needs of safe and quality storage for the ever expanding product range and their volumes, a National Distribution Center (NDC) was completed and became functional in June, 2000. Spread over 6614 square meters, it has the capacity to store up to 8300 pallets (approximately 8000 tons). Kabirwala Factory In 1986 Milkpak Ltd. acquired the services of Kabirwala Dairy Ltd. for co-packing of UHT milk under the brand name MILKPAK. Nestle Milkpak acquired KDL in 1990 as a subsidiary and installed a MAGGI NOODLES plant, which became operational in 1992, producing three flavours: Chicken, Masala and Chatkhara. The second milk powder plant was commissioned in September 1996 and produces NIDO, GLORIA and skim milk powder. The UHT line was discontinued in June 1996 and the same year witnessed the launching of MAGGI YAKHNI. With the merger of this factory with Nestle Milkpak in April 1997, Kabirwala Factory, as it is now called, is a fully owned unit of Nestle Milkpak Ltd. The factory milk powder spray drying capacity was doubled in 1999 with the commissioning of the new evaporator. 1999 also saw the installation of a pouch-filling machine, making KWF self sufficient in the filling of full cream milk powder. A new continuous butter making line is under installation in the year 2000 that will produce very high quality cultured butter under Nestle branding. Indus Fruit Products Ltd. Indus Fruit Products Ltd. was leased by Nestle Milkpak in 1998 for pulping and production of MAGGI Cold Sauces. Tomato Ketchup, Mitch Masala and Khatti Meethi flavours are being produced under the brand

name MAGGI.

Marketing
DAIRY PRODUCTS NESTLE MILKPAK UHT MILK Launched in 1981, it has become synonymous with quality milk. Backed by a very strong brand name, aggressive marketing and distribution plans, consistent quality and availability through out the year, MILKPAK UHT has been extremely successful. In September 1999, MILKPAK UHT milk was launched as NESTLE MILKPAK UHT MILK. NESTLE MILKPAK UHT MILK is available in three pack sizes of 1000, 500 and 250 ml. MILKPAK BUTTER A continuous butter-making machine was commissioned at Kabirwala factory in the year 2000 to produce high quality cultured butter. This new butter was an improvement upon the earlier product and carries Nestle branding that endorses its superior quality. It has an excellent taste and aroma and is easy to spread. The new NESTLE BUTTER is available in two pack sizes of 200g and 100g in new attractive packaging. NESTLE PLAIN YOGURT Launched in November 2000 in Lahore, NESTLE Plain Yogurt is the latest addition to Nestle Milkpak's dairy family. Its unique 'Stay Fresh seal and a 21-day shelf life gives the brand a formidable competitive advantage. The brand provides valuable access to future product launches in the chilled product category through a dedicated chilled distribution. In a very short time the brand has gained a substantial market share. Through future expansion into markets other than Lahore and a strong marketing and sales support, NESTLE Plain Yogurt will undoubtedly grow into a strong brand and, in time, will achieve the status of market leader. MILKPAK UHT CREAM MILKPAK UHT CREAM was introduced under the MILKPAK brand in 1986. It is available in 200-ml pack size in an attractive slim pack. The consumer trust in the brand name and the product has ensured its dominant share in the cream category. MILKPAK CREAM was also introduced in an economical 1000ml pack size in the year 2000. This SKU has been developed for Food Services to cover institutions using large quantities of fresh cream. MILKPAK DESl GHEE MILKPAK DESI GHEE was introduced in 1986 in tin packaging. The packaging was later changed to Tetra Pak. However, in line with the current market trend, MILKPAK DESI GHEE was relaunched in 1Kg tin packaging in the year 2000. The product was also introduced in 16kg tin packing to

tap the huge potential of loose desi ghee. NESTLE EVERYDAY To target the massive potential offered by the tea-whitening segment, NESTLE EVERYDAY tea whitener was launched in 1992. Supported by aggressive marketing using multi-media activities, focused distribution with sampling drives and excellent consumer acceptance, the brand has shown strong growth and holds good promise for the future. NESTLE NIDO NESTLE NIDO has been present in the Pakistan market since early 70's and on account of the consumer confidence in its quality it has become a pillar of Nestle's success. Local production commenced in 1990 and within a short time the brand achieved market leader status in the full cream milk powder category. Made from very superior quality milk and with the addition of vitamins A and D, NESTLE NIDO is the best quality milk for growing children. The brand has now launched a low unit priced SKU that offers half a liter of quality milk at a very affordable price. NESTLE NIDO is well on its way to becoming a mega brand. CHOCOLATE DRINKS MILO POWDER To provide convenience to consumers, NESTLE MILO was launched in its new 130gm. SKU in an attractive airtight jar in February 2000. This was done with a view to bring our packaging in line with the industry practice of making milk fortifiers and modifiers available in jars and tins and to reverse the trend of consumer preference for imported MILO or similar products over local MILO. Consumer response to the new initiative has been very positive. MILO RTD To cater for consumer convenience, MILO RTD (ready to drink) was launched in 1995 and is now available in an attractive 180ml slim pack. Popular with all age groups, specially among the growing segment of nutrition conscious consumers, it is an excellent substitute for cold drinks. COFFEE NESCAFE CLASSIC NESCAFE, Nestle's international flagship brand, is locally repacked and marketed in 2gm. and 25gm. Sachet, 75gm. bottles and 500gm. soft packs. The brand enjoys a special position in the country's coffee consuming segment. NESCAFE FROTHE NESCAFE Frothe (Original), a premix in 18gm. single serve sachet, was launched in January 2000. The product profile was developed through consumer research and was accordingly offered as a sweet, creamy and foamy coffee. Encouraged by extremely good consumer response to this cappuccino style coffee, French Vanilla and Mocha flavours were introduced in November to offer a wider choice and to enhance the young and fashionable image of this mixes category.

NESCAFE FRAPPE To promote summer consumption of coffee and to change consumer perception that coffee is only a winter beverage, NESCAFE Frappe was launched in June 3000. This iced, creamy, ready-to-drink coffee in 180ml slim pack was positioned to appeal to the youth and gain a strong share from other summer beverages. The launch was extensively supported by promotional programs in major towns and the product is fast gaining in popularity. FRUIT DRINKS FROST A well-known brand, FROST was introduced in 1986 and has the largest share of the countrywide market. Positioned as a cold drink and alternate to cola drinks, its strength lies in the convenience attached to its usage. NESTLE JUICES Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996, the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavours in the year 2000. This has further strengthened the position of Nestle as leader in the value added/premium drinks market. Consumer response to these new flavours has been very upbeat and is expected to gain further. DIETETIC & INFANT PRODUCTS LACTOGEN LACTOGEN 1 and LACTOGEN 2 are infant and follow-up formulae launched in 1991 and are available in two sizes. The brands provide both affordability and quality. CERELAC Launched in 1989, CERELAC is the dominant player in the growing infant cereal market. Available in 5 flavours, the brand provides balanced nutrition to infants from 4 months onwards. NESTLE RICE An affordable starter weaning cereal, NESTLE RICE offers the flexibility of preparation with a variety of meals. Glutenfree, the brand is available in 125 gm. packs and is specially suited to the needs of infants from 4 months onwards. It was launched in 1994. NESTLE WHEAT NESTLE WHEAT is a wheat-based infant cereal without milk, for infants of 4 months and above. It was launched in 1997 and is available in packs of 125 and 250 gm. NESLAC NESLAC is a growing-up milk, formulated specially for 1 to 4 year olds. It contains just the right balance of proteins, calcium, iron, vitamins and essential minerals in order to cater to the nutritional needs of a growing child during this special age. The product was launched in 1994. CULINARY PRODUCTS

MAGGI 2-MINUTE NOODLES Fast to cook, good to eat - MAGGI 2-MINUTE NOODLES were launched with local production in 1992 and in doing so Nestle pioneered the category of instant noodles in Pakistan. MAGGI 2-MINUTE NOODLES have special appeal for children, are fun to eat and offer a range of interesting flavours, namely: Chicken, Masala, Chilli and Chatkhara. Affordably priced and backed by focused marketing activities, MAGGI NOODLES have shown good progress in 2000. MAGGI COLD SAUCES Nestle entered the Cold Sauces' category in 1999 with the launch of MAGGI Ketchup, MAGGI Mirch Maza and MAGGI Khatti Meethi - the first Imli sauce in Pakistan. The innovative taste of Khatti Meethi together with the more traditional tastes of Ketchup and Mirch Maza, were received well by the consumers.