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Introduction of Food Industry in Pakistan & the Present Status of Nestlé Industry
Prepared By: M Usman Waheed
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Agenda
1. INTRODUCTION OF FOOD INDUSTRY IN PAKISTAN 2. INTRODUCTION OF NESTLE2.1 HISTORY & BACKGROUND 2.2 VISION OF NESTLE PAKISTAN2.3 MISSION OF NESTLE PAKISTAN2.4 NESTLE COMPETITORS IN PAKISTAN3. PRODUCTS4. MILKPACK4.1 PROCESS FLOW DIAGRAM OF MILKPACK5. FINANCIAL VALUE/ASPECTS6. FUTURE OUTLOOK7. CERTIFICATION8. REFERENCE
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1. Introduction of Food Industry In Pakistan • Food Industry is the 2nd largest industry in Pakistan. Accounts for
27% of its value‐added production.• 16% of the total employment in manufacturing sector with an
estimated 169 million consumers.• Pakistan holds the world’s eighth largest market. More than 1000
large scale food processing enterprises in Pakistan. • 75% of rural based food manufacturers are in so-called informal
sector (difficulty in accessing raw material finance 11 material, skills, knowledge & management).
• Pakistan is one of the world’s largest producers and suppliers of the following;
Chickpea 2nd Date Palm 6th
Apricot 4th Milk 5th
Sugarcane 4th Mango 3rd
Onion 5th Rice 8th
Wheat 9th Oranges 10th
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2. INTRODUCTION OF NESTLE “Nestlé” is a Swiss-German word which means
“Little Nest” which is its trademark Nestlé is the worlds’ number one food company 5th largest company of the world according to its
turn over 2 million 31 thousand people employed from all
over the world Present in 81 countries of the globe having 522
factories Over 700 products renovated or innovated in the
past five years, with wellness in mind
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2.1 HISTORY & BACKGROUND• Nestle was founded in 1867 in Switzerland by Henri Nestle. • Nestle’s first product was “Farine Lactee Nestle”, an infant cereal. • In year of 1912 Nestle begins its long association with South Asia and starts importing and selling finished products in the Indian market as a Swiss Condensed Milk Company.
• 1979 Syed Babar Ali is the founded of Milkpack. • 1981 Production of UHT milk started at MILKPAK Ltd Sheikhupura factory. • 1988 Nestle 40 %Swetzerland acquires share of MILKPAK Ltd. • 1990 the Sheikhupura factory starts the production of nestle NIDO milk powder and cereals. • 1992 a new plant is developed at Kabirwala in the Punjab. • 1992 Maggi Noodles plant is installed at the Kabirwala factory. • 1996 MILKPAK Ltd. Is renamed Nestlé Milkpak Ltd. • 1997 the Kabirwala plant becomes a fully owned unit of Nestle Pakistan Ltd. • 1998 Nestle PURE LIFE bottled water is premiered in Pakistan.• 2005 Nestlé Milkpack Ltd is renamed Nestlé Pakistan Ltd. • 2008 Nestle kabirwala plant start milk powder production at new plant.
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2.2 VISION OF NESTLE PAKISTAN
• Nestle worldwide vision is to be the recognized leading NHW, Nutrition, Health and Wellness Company. Nestle Pakistan also have same vision; want to become the number one Nutrition, Health, and Wellness Company in Pakistan.
2.2 MISSION OF NESTLE PAKISTAN
• Nestle Pakistan positively improve the quality of life of the people of Pakistan by all that through our people, our brands and products and our CSV activities.
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2.4 NESTLE COMPETITORS IN PAKISTAN
• Unilever Pakistan.• Engro Foods. (Olpers Dairy Products)• Haleeb Foods. ( Haleeb Dairy Products)• Shakirgenj Foods (Goodmilk)• Noorpur Milk.• Pepsi Cola (Aqwafina water)• Coca Cola (Kenly Water)
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3. PRODUCTS
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4. PROCESS FLOW DIAGRAM OF MILKPACK
Milk Reception Lab Testing
QA Approved Milk
Chilling 4OC
Rejection
Cream Separator
Standardization
Homogenization
Cream
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Homogenization
Balance Tank
Filling / PackingIn Customer
Packing
Warehousing
Transportation
Regional WarehousingDistributor
Key Accounts
Final Consumer
Wholesale/Retailer
A
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5. FINANCIAL VALUE/ASPECTSPKR Million 2011 2012 ChangeSales 64,824 79,088 +22.0 %Gross Profit Margin 25.8% 27.2% +1.4%Operating Profit Margin 13.0% 13.9% +0.9Net Profit After Tax Margin 7.2% 7.4% +0.2%Net Profit After Tax 4,668 5,865 +25.6%Earnings Per Share 102.94 129.32 +25.6%
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6. FUTURE OUTLOOK
• Nestle Pakistan’s future operations seem promising with several projects and investments already in line. The company plans to approximately Rs 8 billion in 2013 for milk collection field development, upgrading of existing production facilities and increase in production capacity. The company also plans to continue with its Corporate Social Responsibility efforts in the coming year.
• Nestle Pakistan has also decided to contribute significantly to the Port Grand Project being initiated in Karachi with a Coffee Shop and Beverages Bar offering at the complex
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7. CERTIFICATION
• Nestlé’s adapt the existing (NIMS) Nestlé Integrated Management Systems to full conformity with the international Standards. Certifications of nestle Pakistan Ltd. Are as under;
• ISO 14001 (Environmental Management Systems)• OSHAS 18001 (Occupational Health & Safety Assessment Series)• HACCP (Hazard Assessment & Critical Control Point)• ISO 2200 (combination of HACCP and ISO 9001 related to quality management system and many more things)• FSSC 22000; contains a complete certification scheme for Food Safety Systems based on the food safety management standard ISO 22000: 2005 ‘Requirements for any organization in the food chain’ and the publicly available specification for Prerequisite programs on food safety for food manufacturing, PAS 220: 2008.
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8. REFERENCE
• Economic Survey of Pakistan 2005-06• Pakistan Country Overview 2006, the World Bank• “The State of Pakistan’s Competitiveness 2007”
Competitiveness Support Fund/Ministry of Finance, Islamabad.• Policy analysis on the Competitive Advantage of the Food
Processing Sector in Pakistan• www.nestle.pk/asset-library/.../nestle_annual_report_2011_e
n.pdf
• www.nation.com.pk/pakistan.../nestl-to-train-30-000-farmers-to-improve
• Muhammad Arshad, QA manager in Nestle Kabirwala Plant
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