nestle economic envirnment
TRANSCRIPT
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