introduction of food industry in pakistan & the present status of nestle pakistan

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  • Introduction of Food Industry in Pakistan & the Present Status of Nestl Industry 1Prepared By: M Usman Waheed
  • Agenda 1. INTRODUCTION OF FOOD INDUSTRY IN PAKISTAN 2. INTRODUCTION OF NESTLE 2.1 HISTORY & BACKGROUND 2.2 VISION OF NESTLE PAKISTAN 2.3 MISSION OF NESTLE PAKISTAN 2.4 NESTLE COMPETITORS IN PAKISTAN 3. PRODUCTS 4. MILKPACK 4.1 PROCESS FLOW DIAGRAM OF MILKPACK 5. FINANCIAL VALUE/ASPECTS 6. FUTURE OUTLOOK 7. CERTIFICATION 8. REFERENCE 2
  • 1. Introduction of Food Industry In Pakistan Food Industry is the 2nd largest industry in Pakistan. Accounts for 27% of its valueadded production. 16% of the total employment in manufacturing sector with an estimated 169 million consumers. Pakistan holds the worlds 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 worlds 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 3
  • 2. INTRODUCTION OF NESTLE 4 Nestl is a Swiss-German word which means Little Nest which is its trademark Nestl 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
  • 2.1 HISTORY & BACKGROUND Nestle was founded in 1867 in Switzerland by Henri Nestle. Nestles 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 Nestl 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 Nestl Milkpack Ltd is renamed Nestl Pakistan Ltd. 2008 Nestle kabirwala plant start milk powder production at new plant. 5
  • 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. 6
  • 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) 7
  • 3. PRODUCTS 8
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  • 4. PROCESS FLOW DIAGRAM OF MILKPACK Milk Reception Lab Testing QAApproved Milk Chilling 4OC Rejection Cream Separator Standardization Homogenization Cream A 10
  • Homogenization Balance Tank Filling / Packing In Customer Packing Warehousing Transportation Regional Warehousing Distributor Key Accounts Final Consumer Wholesale/Retailer A 11
  • 5. FINANCIAL VALUE/ASPECTS PKR Million 2011 2012 Change Sales 64,824 79,088 +22.0 % Gross Profit Margin 25.8% 27.2% +1.4% Operating Profit Margin 13.0% 13.9% +0.9 Net 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% 12
  • 6. FUTURE OUTLOOK 13 Nestle Pakistans 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
  • 7. CERTIFICATION 14 Nestls adapt the existing (NIMS) Nestl 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.
  • 8. REFERENCE Economic Survey of Pakistan 2005-06 Pakistan Country Overview 2006, the World Bank The State of Pakistans 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_en.pdf www.nation.com.pk/pakistan.../nestl-to-train-30-000- farmers-to-improve Muhammad Arshad, QA manager in Nestle Kabirwala Plant 15
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