nestle economic envirnment

PROJECT ONBUSINESS ENVIORNMENT

OF

NESTLESUBMITTED TO :

GEETANJALI KAPOOR MA’AM

GROUP MEMBERS

• PRADNYA BHALERAOC-03

• SWAPNIL GALGALIKARC-13

• RAKESH LALWANIC-19

• CHAITALI SWAMIC-36

• PRATIKSHA RANEC-42

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

HISTORY• Nestlé was founded in 1867 on the shores

of Lake Geneva in Vevey, Switzerland

• Nestlé India is a subsidiary of Nestlé S.A.

of Switzerland

• Nestlé’s 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.

HISTORY

• After India’s independence in 1947,

economic policies of the Indian

Government emphazised the need for local

production.

• Nestlé responded to India’s 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.

BOARD OF DIRECTORS

EXPANSION IN INDIA• Beginning with its first investment in Moga

in 1961, Nestlé’s regular and substantial

investments established that it was here to

stay.

• In 1967, Nestlé set up its next factory at

Choladi (Tamil Nadu) as a pilot plant to

process the tea grown in the area into

soluble tea.

EXPANSION IN INDIA• The Nanjangud factory (Karnataka),

became operational in 1989,

• The Samalkha factory (Haryana), in

1993

• In 1995 and 1997, Nestlé

commissioned two factories in Goa at

Ponda and Bicholim respectively.

• It commissioned in 2006 its 7th

factory at Pant Nagar in Uttarakhand.

They want to be dedicated towards

continuous improvement in the food

safety and quality of every product they

make and in every activity in which they

perform

FEATURES

• Nestlé India is a vibrant Company that

provides consumers in India with

products of global standards

• Acknowledged as India's 'Most

Respected Companies'

• 'Top Wealth Creators of India'

Manufactures products of truly

international quality under

internationally famous brand names

In recent years they introduced

products of daily consumption

NESTLÉ Milk

NESTLÉ SLIM Milk

NESTLÉ Fresh 'n' Natural Dahi

NESTLÉ Jeera Raita.

EXPORTS

• Milk Products

• Beverages

• Prepared dishes and cooking aids

• Chocolates and confectionery

CAPITAL

• Owned Capital of Rs. 418.42 crores including reserves of Rs. 322,00,84,000

• Borrowed Capital of Rs. 2.87 crores

ASSETS

• Fixed Assets of Rs. 675.50 crores

CURRENT ASSETS• Negative Current Assets but high

Fixed Assets backing• Interest free financing

INVESTMENTS

• Investment in Government securities i.e. Treasury Bills

• It has also invested in various Mutual Funds

(Rs. in Million) 2007 2006

-Gross Revenue 35,298 28,367-Earning before Interest and Tax excluding Other Income (EBIT) 6,215 4,752-Interest 8 4-Impairment Loss on Fixed Assets (Net) 12 4-Additional Employee Cost 753 --Provision for Contingencies (Net) (590) 145-Provision for Tax 2,148 1,654-Net Profit 4,138 3,151-Profit Brought Forward 105 72-Balance Available for Appropriation 4,243 3,223-Interim Dividends 2,941 2,458-Final Dividend Proposed 241 --Corporate Dividend Tax 522 345-Transfer to General Reserve 414 315-Surplus carried in Profit and Loss Account 125 105

Financial Results and Operations

At Glance• NET SALES : Rs.3504.35 Crores. [Increases by Rs.688.29 Cr. UP

24.4%] • NET PROFIT : Rs.413.81 Crores.

[Increases by Rs.98.71 Cr. UP 31.3%]

• Highest Ever Full Year Dividend of 330 %

• Income tax paid Rs. 214,80,16,000

Taxation Policy

• In India Corporates are taxed at 30 % of income as per income tax act

• Corporates are subject to 10% surcharge if the income exceeds 1crore

Excise Duty• Various plants in India in various states -basic duty 8%

PROMOTION• Availability of the vending machine

network.• New consumption opportunities for

chocolates were identified and developed in areas like

• railway platforms• college canteen• major events.• ‘Café Nescafe’ and ‘Coffee Corners’

across metros and mini-metros.

DISTRIBUTION

• Low sales growth in chocolate and other products

• Added 15 regional sales offices in its sales and distribution structure

SUPPLY CHAIN

Nestle India has continuously focused on improving the supply chain to reduce wastageimprove efficiencies and provide consumers with fresh stocks all the time.

COMPETITORS

ADVERTISING

CHANGE THEIR ADVERTISEMENTS

ACCORDING TO THEIR PRODUCTS

BRAND AMBASSADOR

HR POLICIES

• Each employee has a distinct responsibility in dealing with people be it as a leader of a team or as a peer

• Partnership is the key for efficiency in people management

A shared Responsibility

• Strong interpersonal relationships

• A prerequisite for dealing with

people is respect and trust

Dealing with People

• Best personal attitudes and professional skills

• Decision is not left with consultants or experts

Joining Nestlé

• Commitment towards The Corporate Business Principles

• Suggestions from employees are welcome

Employment at Nestlé

• Nestlé believes that the employee’s private

and professional life should have a good balance

• Nestlé appreciates employees taking active participation in life of the community

Work/Life Balance

Remuneration

• Favors fair remuneration structures offering an overall competitive compensation package

• Implement flat & flexible organizational structures

Learning among employees is highly encouraged

Professional Development

• Shares good report with unions and other representative associations

• Wishes to sustain the long-term development of the Company, both to the benefit of the employees and of the Company

Industrial Relations

• Nestlé is highly people and product centric

• Believes humans as an asset

HR Organization

CORPORATE SOCIAL

RESPONSIBILITY

Creating Shared Value “Nestlé's business is part of social fabric of

the community in which it operates. Our business objective is create value that can be sustain over the long term for company and society, and create opportunity and prosperity as partner in growth.”

CORPORATE SOCIAL RESPONSIBILITY

• Reduction in emission of GHG by 16%• Reduction in overall water consumption by

28%• Overall production increased by 76%• Invested over 100 million in environment-

related industrial improvements• Free technical assistance to over 600,000

farmers

Green house gases emission

Energy consumption

CORPORATE SOCIAL RESPONSIBILITY

• Started school for

poor children in

villages

• Developing dairy

farmers

• Empowering village women

Village covered – 550

Women covered – 30,000

CORPORATE SOCIAL RESPONSIBILITY

Opportunity

1. Potential for expansion in the smaller towns and other geographies

2. Development of modern retail formats3. Potential for growth through increased

penetration4. Growing trend for ‘Out of Home’

consumption5. Leverage Nestlé Technology to develop more

products that provide Nutrition6. Growing per capita income

Threat

1. Rising prices of raw materials and fuels.

2. Change in fiscal benefits/laws.

3. People attraction and retention.

4. Competitive environment with diverse

AWARDS & RECOGNITIONS

• In 2007 – Nestlé was voted among the Top 50 Future Shaping business company by the St. Louis RCGA magazine.

• In 2008 - “Best Places to Work” in St. Louis by the St. Louis Business Journal based on their unique culture

AWARDS & RECOGNITIONS

• In 2008 – "Heroes of the Planet Award" for their Sustainable Operations

• In August 2008 – Nestle’s positive work environment and unique culture where associates are welcome to bring their pets to work were highlighted in AAIM's Connection Magazine.

• Nestlé USA was recognized by Business Week among their list of Best Places to Launch a Career

• In 2008, Nestlé was ranked #1 in the consumer food products industry in Fortune Magazine's annual survey of America's Most Admired Companies

• In 2007, Nestlé was named among "World's Most Admired Companies" by Fortune Magazine

CONCLUSION

WIBLOGRAPHY

• www.nestleindia.com