1 History of the Nestle

Nestl headquarters in Vevey.

The company dates to 1867, when two separate Swiss enterprises were ounded that would
later orm the core o Nestl. !n "u#ust o that year, $harles ". and %eor#e &a#e, 'rothers
rom (ee $ounty, !( in the )nited States, esta'lished the "n#lo*Swiss $ondensed +il,
$ompany in $ham. !n Septem'er, in Vevey, -enri Nestl developed a mil,*'ased 'a'y
ood and soon 'e#an mar,etin# it. !n the succeedin# decades 'oth enterprises a##ressively
e.panded their 'usinesses throu#hout /urope and the )nited States. 0-enri Nestl retired
in 1871, 'ut the company, under new ownership, retained his name as 2arine (acte -enri
Nestl.3 !n 1877 "n#lo*Swiss added mil,*'ased 'a'y oods to its products, and in the
ollowin# year the Nestl company added condensed mil,, so that the irms 'ecame direct
and ierce rivals.
-enri Nestl.
!n 1451, however, the companies mer#ed to 'ecome the Nestl and "n#lo*Swiss
$ondensed +il, $ompany, retainin# that name until 1467, when the name Nestl
"limentana S" was ta,en as a result o the acquisition o 2a'rique de &roduits +a##i S"
0ounded 18863 and its holdin# company, "limentana S" o 7empttal, Swit8erland.
+a##i was a ma9or manuacturer o soup mi.es and related oodstus. The company:s
current name was adopted in 1477. ;y the early 1455s, the company was operatin#
actories in the )nited States, )nited 7in#dom, %ermany and Spain. <orld <ar ! created
new demand or dairy products in the orm o #overnment contracts= 'y the end o the war,
Nestl>s production had more than dou'led.
"ter the war, #overnment contracts dried up and consumers switched 'ac, to resh mil,.
-owever, Nestl>s mana#ement responded quic,ly, streamlinin# operations and reducin#
de't. The 14?5s saw Nestl>s irst e.pansion into new products, with chocolate the
company>s second most important activity.
&a#e 1 o 25

Nestle Quality Policy
@uality is the oundation o our ood, nutrition, -ealth and <ellness $ompany.
" Nestle 'rand name on product is a promise to the customers that A
!t is sae to consume.
!t complies with all relevant laws and re#ulation.
@uality is to win consumers trust and preerence.
<e are committed to oerin# products and services to all customers that meat their
needs.
@uality is every 'ody:s commitment.
Bur mana#ement ta,es the lead, sets the o'9ectives and demonstrates its
commitment towards quality.
"ll Nestle unctions across our value chain are ully responsi'le to ollow
mandatory norms.
@uality is to strive or Cero deect and no waste.
<e ocus on acts and results and we strive or Cero deect and e.cellence in every
thin# we do.
<e adopt DNo wasteE and we constantly loo, or competitiveness and
opportunities or continuous improvement o the quality standards delivered to our
customers.
@uality is to %uarantee, ood saety and ull compliance.
<e enorce ood saety, re#ulatory and quality requirements in every step o our
value chain.
&a#e 2 o 25
2 Business of the Nestle
Nestle is the lar#est ood company in the world. !t is present in all ive continents, has an
annual turnover o 76.7 'illion Swiss 2rances. There are 154 actories are runnin# in 8F
countries, havin# ?F1,555 employs
Company Mission

At Nestle, we beliee that research can help us to ma!e better foo", so that people
lie a better life#
%ood ood is the primary source o #ood health, so we are tryin# to ma,e #ood ood.
To provide resh and pure products to the customers, we introduced 0S-/3 Saety, -ealth
and environment policy to protect health o our employs and ,eep clean our surroundin#
environment
Company $ision

Vision o Nestle +il,pa, $ompany is to e.pand 'usiness accordin# to the
increasin# demand o mar,et.
"s per our company vision in ?5?5 production capacity o all plants wor,in# in
&a,istan is 'ein# increased.
2#1 %n"ustry&'ector
Nestl is conscious o the act that the success o a corporation is a relection o the
proessionalism, conduct and the responsi'le attitude o its mana#ement and
employees. Thereore recruitment o the ri#ht people and on#oin# trainin# and
development are crucial.
Nestl continues to maintain its commitment to ollow and respect all applica'le
local laws in each o its mar,ets.
G Bur products are manuactured in ive acilities scattered around the
country, rom !slama'ad in the north, to 7arachi in the south.
G Two state*o*the*art multipurpose actories are located in the a#ricultural
heartland o the &un9a', and the remainin# three are dedicated to producin#
our trusted 'rands o 'ottled water.
&a#e ( o 25
G "s citi8ens o &a,istan, we consider it our duty to ma,e sure that our
manuacturin# processes are clean, hy#ienic and sae.
G <e are constantly wor,in# to reduce emissions at our actories, reducin#
and treatin# wastewater, and ma,in# our pac,a#in# environmentally
riendly. He#ular audits have conirmed that our actories> environmental
mana#ement meets the Nestl international standard.
G "s is the Nestl policy around the world, we care or our people. <e
uphold the principles o the )N %lo'al $ompact and encoura#e women to
participate.
G !n 1445, Nestl +il,pa, acquired the 7a'irwala actory, located in
7hanewal district o the &un9a', as a su'sidiary. ;y 1447 it was a ully
owned unit o Nestl &a,istan (td.
G Soon ater it was acquired, we 'e#an up#radin# its capacity. !n 144? we
added a +"%%!I Noodles plant was added and 1446 saw an additional o
a mil, powder.
G Bver the years, the 7a'irwala actory was constantly enhanced. N/ST(JI
/V/HKL"KI tea whitenin# powder was introduced in ?55? and
revolutionised tea and coee drin,in# in homes and oices around the
country.
G !n ?551, the actory continued to ma,e nota'le achievements.
G ?556 has seen the commencement o 7a'irwala /.tension &ro9ect that
would 'e completed in "pril ?557 at a cost o a'out Hs. 6.5 'illion. The
pro9ect has seen e.pansion o mil, processin# capacity to triple its current
si8e, 'oth or powder and liquid.
G !n ?551 we acquired the "V"I water actory in !slama'ad. !t 'ecame a ully
owned unit in ?55F, and we immediately instituted a pro#ramme o ma9or
improvement to 'rin# the acility on par with international standards.
G Bver the years, 'etter and more eicient machinery has 'een introduced. This has
helped us speed up production, and provide our consumers with their avourite
'rands o 'ottled water in convenient pac,a#e si8es.
G <e are proud that the !slama'ad actory has made eorts to 'rin# &a,istani
women into the wor,orce, 'y providin# a comorta'le and ena'lin# wor,
environment.
&a#e ) o 25
2#2 'cope of *ra"e +National&%nternational,
&a,istan is an a#ricultural country. "ccordin# to +inistry o 2ood, "#riculture and
livestoc,, a#riculture accounts or ?5.4 percent o the %L&. Lairy industry contri'utes
64M to the a#riculture value and 11M to the %L&. "nnual production o mil, is F1.?1
;illion liters in the country= ;ut the &rocessed mil, is only 6M o the total production.
(i,e other countries Lairy is not a dedicated proession o the people, armers is
associated with dairy and a#riculture at the same time, &roita'ility or the armers is very
less. !nrastructure is not developed, coolin# tan,s and other acilities are not availa'le,
and the lar#e part o mil, production is wasted. There is a multi*hierarchal distri'ution
system o the mil,= the armers are not #ettin# reward o their wor,. "ll these actors are
ma,in# this industry unattractive or the armers and the industry is no developin# up to
mar,.
Bnly 6M o the total mil, production is processed and used in ur'an areas o the country.
Nestle +il,pa, have a #reat share in the dierent multinational companies. !t is
statistically calculated that Nestle +il,pa, have 15M share in the Nestle company and
now Nestle 'ecome the leader o all multinational companies in ood products and
'evera#es. Nestle is operatin# in all 'i# cities in &a,istan and try 'est to provide its
&roducts to other small cities and towns.
"ccordin# to &a,istan Lairy Levelopment "uthority
( Mana-ement Proce"ures
The e.ecutive 'oard, a distinct entity rom the 'oard o directors, includesA
&aul ;ulc,e , Nestl $/B
Nohn N. -arris, /V&, $hairman, and $/B o Nestl <aters
2rits van Li9,, /V& o "sia, Bceania, "rica, +iddle /ast divisions
&etraea -eyni,e, /V& o Strate#ic ;usiness )nits and +ar,etin#
2rancisco $astaOer, /V& o &harmaceutical and $osmetic &roducts, (iaison with
(>Bral, -uman Hesources
+ichael &owell, /V& o )nited 7in#doms Livision
&a#e 5 o 25
Names Sin#h, /V& o 2inance, $ontrol, (e#al, Ta., &urchasin#, /.port
(uis $antarell, /V& o /urope divisions
Hichard T. (au'e, Leputy /V& o Nutrition Strate#ic ;usiness units
<erner N. ;auer, /V& o Hesearch and Levelopment, Technical, &roduction,
/nvironment.
$urrent mem'ers o the 'oard o directors o Nestl areA &eter ;ra'ec,*(etmathe
0chairman3, &aul ;ulc,e, "ndreas 7oopmann, Hol -Pn##i, Nean*Hen 2ourtou, Laniel
;orel, Nean*&ierre +eyers, "ndr 7udels,i, $arolina +Qller*+Rhl, Steven -och, NaSna
(al 7idwai and ;eat -ess. The Secretary to the ;oard is Lavid 2ric,.
.oint entures
Nestl holds ?6.6M o the shares o (>Bral, the world>s lar#est company in cosmetics and
'eauty. The Laboratoires Inneov is a 9oint venture in nutritional cosmetics 'etween Nestl
and (>Bral, and Galderma a 9oint venture in dermatolo#y with (>Bral. Bthers include
$ereal &artners <orldwide with %eneral +ills, ;evera#e &artners <orldwide with $oca*
$ola, and Lairy &artners "mericas with 2onterra.
(#1 /r-ani0ation 'tructure of the /r-ani0ation

&roduct T Services oered 'y the Br#ani8ation
Nestle &a,istan has 'ein# at the oreront o development o dairy sector in &a,istan as
ma9or industrial sta,e holder or a while .internal eorts and some initiatives with
#overnment have 'ein# #oin# on since lon# in order to ma.imi8e the development o the
sector .still, a need or sector wise coordination and com'ine eorts was there to ensure
utili8ation o all availa'le resources to move orward in the direction.
Throu#h the a#ric*services department nestle has 'ein# involved with various
inrastructure and support related initiatives such as development o model arms, setup o
mil, chiller and import o "ustralian cow to 'oost mil, production .nestle is also wor,in#
towards settin# up me#a dairy arms to e.empliy 'est arm practices and ways to 'oost
mi,e production
&a#e 1 o 25
4. Product & Services offered by the Organization

Nestle %ood Start %entle &lus &owder 2ormula, 15 $ans U614.44
Nestle -ot $ocoa +i., Hich $hocolate, No Su#ar "dded, 8*$ount /nvelopes
$oee*+ate 2rench Vanilla Non*Lairy $reamer, Shel Sta'le,
Visit Store N/ST(/ N/S758?1 $oee $SN Bice
Visit Store ;a'y Huth ?6 V ?.1 B8 ;a'y Huth ?6 V ?.1 B8
Visit Store ;it*o*-oney, 1.7 o8 F6 ct ;it*o*-oney, 1.7 o8 F6 ct
&a#e 2 o 25
6 &ac,*F? B8. $ansW Nestle %ood Start...
Nestle +il, $hocolate ;ar ?6ct
Nestle $erelac Tri#o con (eche
Nestle %BBL ST"HT Supreme !nant...
N/ST(/ ... N/ST(/ N/S?6F55
&a#e 3 o 25
N/ST(/ ... N/ST(/ N/S46155 <on,a
Nestle -ot $ocoa +i., Hich $hocolate,...
Nestle Nips $andy $oee 6 o8
Nestle "ero Lar, ?6 V 6?# ;ars
Nestle Lar, Haisinets $hocolate...
&a#e 4 o 25
Bran" Name of 5ach Pro"uct 6 'erice /ffere"
Nestle Nuices
Nestle Nesvita
Nestle yo#urt
;ottled <ater
$hocolate
;a'y 2ood
+a##i noodles
Nescae
&a#e 17 o 25
"t Nestl, our chie commitment is to our consumers, and we ma,e every eort to ma,e
sure that their voices are heard.
<hen -enri Nestl prepared his irst 'o.es o inant ormula or sale, he put his address
on the pac,a#es. Today, our $onsumer Helationship &anel e.horts people to XTal, to
NestlX, e.pressin# the same 'elie in openness and accessi'ility.
Bur consumer services department is staed 'y e.perts in every area related to our
products and wellness, and is poised to provide prompt and relevant service to our
consumers.
<e 'elieve that consumer services requires us to tal, to consumers and also, a'ove all, to
listen to them.
Bnly 'y listenin# to what people say can we understand what they want and need. Bnly 'y
understandin# their needs can we serve our consumers to the ullest.
*ransaction 8etails
2requency,
amount and timin# o purchases,
items 'ou#ht,
prices paid,
)se o cash or credit.
Ac9uisitions 8etails
+ar,etin# channel,
&romotion type, and
"ddressWcity.
Bran" Ambassa"ors of /r-ani0ation&Pro"ucts
Nune 18, ?558 0Saw News3 * Nestle has dropped ;ollywood star Hani +u,er9i as 'rand
am'assador or its chocolate 'rand, Nestle +unch, 'ecause she has ceased to 'e a youth
icon.
&a#e 11 o 25
Hani had endorsed the product or the last our years, and eatured in many Television
commercials promotin# the 'rand.
" ew months earlier, Hani was dropped rom 2anta commercials, and replaced 'y risin#
South star "sin, "amir 7han>s %ha9ini co*star.
" top &H oicial o Nestle !ndia, 'ased in %ur#aon, tal,ed to us on condition o
anonymity.
XBur contract with Hani +u,her9ee was due to #et over and we were in the midst o
plannin# new mar,etin# strate#ies or our 'rand. !t is then that we decided that we won>t
'e renewin# our contract with her,X the oicial told us. XBur new strate#ies include
tar#etin# the youth and Hani ceases to 'e any ,ind o a youth icon anymore. -er ilms
haven>t really wor,ed out at the 'o. oice and we are loo,in# out or someone who is
very popular in this cate#ory. <e are wor,in# out on a ew options and a inal
announcement shall 'e made very soon.X
" source close to Hani conirmed the development, tellin# us, XHani is e.tremely
disappointed 'y Nestle>s unproessionalism. They ,new well that once the contract came
up or renewal, Hani would increase her price. They wanted to #o in or someone cheaper
perhaps. They should 'e than,ul that Hani has #ot their product noticed in last our
years.X
Nestle>s action seems to relect the ilm industry>s perception that Hani is no more the 'o.
oice draw that she once was.
Hani>s stoc, in the industry has dropped ollowin# the poor 'o. oice response to her
recent ilms li,e Saawariya 0?5573, (aa#a $hunari +ein Laa# 0?5573, Ta Ha Hum &um
0?5573, and ;a'ul 0?5563. She is also perceived to 'e too closely ali#ned to the Kash Ha9
2ilms 'anner 'y other ilmma,ers.
/ven her >riends> in the industry are not ready to 'et on her anymore.
<hen 7a9ol vacillated over si#nin# up or +y Name is 7han, the ilm>s producer and
director, 7aran Nohar, a close riend o Hani, surprised industry watchers 'y announcin#
that he would #o with 7areena instead, even thou#h Hani comes throu#h as a more natural
7a9ol replacement.
&a#e 12 o 25
1. Human :esource 8eelopment Policies
-H is dedicated to our employees, and ensures that we have all the ri#ht people with the
ri#ht s,ills, in the ri#ht places at the ri#ht time.
)nderstandin# that our people are the 'edroc, o all our 'usiness strate#ies, it is our
mandate to enhance their s,ills with cuttin#*ed#e trainin# and provide them with world*
standard acilities.
<e select le.i'le, innovative people who are ready to conront new challen#es and ma,e
a dierence. Bur #round'rea,in# +ana#ement Trainee &ro#ramme aims to develop
talented youn# men and women and help them achieve their potential in a dynamic and
ena'lin# environment.
Bver a hundred people travel out o the country every year to ta,e advanta#e o our
international trainin# and development events
5#1 :ecruitment 6 'election Proce"ures
/mployees, people and products are more important at Nestl han systems. Systems and
methods, while necessary and valua'le in runnin# a comple. or#ani8ation, should remain
mana#erial and operational aids 'ut should not 'ecome ends in themselves. !t is a question
o priorities. " stron# orientation toward human 'ein#s, employees and e.ecutives is a
decisive, i not the decisive, component o lon#*term success.
5#2 *rainin- 6 8eelopment Proce"ures
There are a num'er o ways you can 9oin us. <e li,e to recruit people into real 9o's, and
when a position 'ecomes availa'le, we will select the 'est person or it. Bur recruitment
and selection practices and procedures are transparent, air, and comply with le#al
requirements. +a,in# use o selection panels that are utilised or all vacancies ensures
transparency. The persons involved in the selection panels airly represent a diverse #roup.
Mana-ement *rainee Pro-ramme! you>re youn#, 'ri#ht and hard wor,in#, the
+ana#ement Trainee &ro#ramme may 'e the place or you.<e hire resh #raduates as
potential mana#ers to develop new competencies and s,ills throu#h on*the*9o'
development.Kou>ll 'e hired in one o various departments at inductee level on a 1?*month
trainin# pro#ramme. Bnce you>ve completed the pro#ramme, you will 'e assi#ned
independent responsi'ilities supportin# the company>s 'usiness needs. <e 'e#in sourcin#
+ana#ement Trainees in Nanuary. &reliminary interviews and screenin# is or#anised
accordin# to the #raduation schedules o &a,istani and orei#n universities, and are
&a#e 1( o 25
ollowed 'y interviews with senior mana#ement.! you have any queries a'out the
+ana#ement Trainee &ro#ramme, and drop us an emailY%nternships!nternships are a #reat
way to apply the ,nowled#e and s,ills you are developin# at university and #et e.perience
in a leadin# corporation. <e oer pro9ect*'ased internship positions in various
departments at Nestl &a,istan.Kou may 'e hired as an intern at various points durin# your
academic careerA durin# under#raduate study or #raduate school. +ost internship
assi#nments are oered durin# the summer months and #enerally run or 6 to 8 wee,s. "t
the end o the internship you will 'e required to su'mit a pro9ect or pro#ramme report to
the company on the topic assi#ned to you at the 'e#innin# o the internship pro#ramme. !
you impress us with your talent T hard wor,, you may 'e considered or employment
opportunities ater you have completed your studies.&lease contact us i you have any
queries a'out our internship pro#ramme.
6. Mar!etin- 'trate-y
Bur mission is toA
Z Bptimise and consolidate resources and processes or a low*cost 'ut eicient
Z Levelop and mana#e simpliied and eective supply networ, to achieve a hi#h
level o service
Z $reate a continuous improvement culture driven 'y perormance measures and reward
Today, Nestl +il,pa, produces in over 81 countries and achieves 48M o its turnover
outside /urope. Nestl mil,pa, is the world:s lar#est mil, company, which does 48M o
its 'usiness. !t has an annual turnover o 75 'illion Swiss rancs, 1?? new actories in 81
countries, ?55 operatin# companies, 1 'asic research outer and ?5 technolo#ical
development #roups, has more than ?F1,555 employees and more than 8555 products
around the #lo'e. There are three companies co*ordinate the activities o some ?55
operatin# companies around the #lo'e. Their unctions and details are as ollowsA The
irst, Nestl mil,pa,, holds the inancial shares in the allied companies. !t also chec,s the
proita'ility o these companies and to ensure the proita'ility o the #roup as whole.
The second, Nestl mil,pa,, has two areas o activities that are as ollowsA
Hesearch and technolo#ical development,
Technical assistance ;eside this, it provides ,now*how in en#ineerin#, mar,etin#,
production, or#ani8ation, mana#ement and personnel trainin# on a continuous
&a#e 1) o 25
'asis. The third company is Nestl <orld Trade $orporation that oversees the
import and e.port o merchandise worldwide.
Mar!et se-mentation an" tar-et strate-y inclu"in- consumer profilin-
!t is really a 'i# mar,et and it is always diicult to se#ment the 'i# mar,et. There are
many uses or se#mentation.
Nee"s Base" 'e-mentation
+il, &ac, has made dierent si8es o tetra pac,s which can match the needs o 'uyers,
ran#in# rom 5.?1 liters to 1.1 liter. ;uyers can 'uy accordin# to there need 'etween these
quantities.
&a#e 15 o 25
Pro"uct 'e-mentation
+anuacturers diversiy products within each needs 'ase to appeal to 'uyers with dierent
tastes and wealth.
1#1 %nte-rate" Mar!etin- Communication +%MC,
$ompany have a complete imc plan in which they that how can the
company will inorm their consumer a'out the new, upcomin# product and value added
services to the e.istin# product. The sources which can use 'y the company to inorm
their consumers are print, electronic as well as throu#h their we'sites.
"s a mother you want the 'est or your child and almost always [worry a'out hisWher
health. ;ut are you completely sure i your child is #ettin# suicient nutrition or his or
her #ood health and development\
+any o you may not 'e so sure. $hildren 'etween 1 to F years o a#e e.perience rapid
#rowth and stron# hei#ht and wei#ht #ains ma,in# their nutritional requirements unique.
That>s why we have N/ST(J N/S(", #rowin#*up mil, or children 1*F years o a#e.
N/ST(J N/S("$ provides the ri#ht vitamins and minerals in the ri#ht proportions that
your little one needs at this particular a#e.
N/ST(J N/S("$ is availa'le in -oney lavour and is enriched with the ri#ht 'alance o
&rotein, !ron, $alcium and +ultivitamins to help #ive your child a stron# and healthy
oundation or lieY
Mar!et Positionin-;
They will position our product as a hi#h quality product consumer ocused. +essa#es li,e
DThey ,nows your taste 'etter than usE, DNestle +il,pa, now at your door stepE= D"dd
additional lavors: to your lieE will help us portray our picture clearly and distinctly.
+il,pa, will position our product a#ainst the competitors and #ain competitive advanta#e
throu#h our eicient promotional methods, usin# innovations, and 'y reachin# closer to
our tar#et mar,et throu#h the arran#ement o events li,e ;"S"NT, V"(/NT!N/ L"K
&a#e 11 o 25
and etc. !n short consumers will view us as a product providin# hi#hly quality, in terms o
taste, customer ocused and, at the same time reasona'ly priced as compared to others.
1#2 Mar!et 'hare
Nestle steps up efforts to -row mar!et share
T-/ diicult operatin# conditions across the ast*movin# consumer #oods 02+$%3
industry have aected sales perormance o some products o Nestle !ndia last iscal.
Thou#h the company says that it has maintained its mar,et share in most o the product
cate#ories 'y ta,in# a ew measures, includin# mana#in# input costs and price points,
improvin# distri'ution networ, as well as mar,et penetration and ma,in# more eective
use o its supply chain, sales o some ,ey products remained 'elow e.pectations in ?556.
Ta,e or e.ample liquid )-T 0lon# shel*lie3 mil,. The Nestle !ndia $hairman, +r
+artial %. Holland, said in the latest annual report that the mar,et perormance o this
product has 'een 'elow e.pectations and a ull review is 'ein# underta,en. "nd even as
+a##i noodles continue to have the hi#hest sales volume in !ndia, amon# all Nestle
companies, +a##i sauces have perormed 'elow e.pectations durin# ?556 due to
a##ressive competition, he added.
+il,maid Sweetened $ondensed +il, did not perorm as per plan, and +r Holland said
the company is ta,in# corrective action to improve the perormance o +il,maid Squee8y.
Similarly, in conectionery, Nestle $hocostic, is 'ein# reviewed, even as the company
said products such as Nestle +il,y'ar /clairs, Nestle /clairs and &olo lo8en#es have
perormed well.
!n the recent past, Nestle has 'een reviewin# the perormance o +ilo $hocolate /ner#y
2ood Lrin, and it launched +ilo with ];adam Sha,ti> in select cities o Tamil Nadu
durin# last iscal. The $hairman said perormance o the new variant is 'ein# monitored.
"mon# the products that continue to perorm well rom the Nestle sta'le are Nestle
+unch and Nestle 7it,at chocolates, Nescae instant coee and /veryday Lairy
<hitener.
&a#e 12 o 25
7. <inancial Proce"ures
"n employee in 2inance T $ontrol ensures we ma,e inancially sound 'usiness decisions
to meet our lon#*term proita'ility #oals. Nestl is a inancial leader in the consumer
products industry and one o the ew irms around the #lo'e with a """ credit ratin#.
<e>re loo,in# or employees with stron# analytical and communication s,ills, a
willin#ness to em'race chan#e and the discipline to meet inancial standards.
2#1 Metho"s for :aisin- <un"s
Ambi!a Cotton to issue pref shares to =*% enture fun"
" V/NT)H/ und promoted 'y )T! "sset +ana#ement $ompany has orayed into
te.tiles account 'y choosin# to invest in the $oim'atore*'ased "m'i,a $otton +ills (td
0"$+3, a ,nown name in the premium se#ment cotton yarn production and e.ports.
"$+>s 'oard o directors early this wee, decided to issue 8.71 la,h shares to )T!
!nvestment "dvisory Services (td, trustees o the )T!>s venture und ]"scent !ndia 2und>,
throu#h preerential issue route. "m'i,a $otton will #ive the preerence shares at a
premium o Hs 171 per share 0o ace value o Hs 15 each3 and the company stands to mop
up Hs 16.18 crore rom the preerential issue to 'uttress its capital 'ase.
To acilitate the preerential share allotment to the )T!, the "$+>s 'oard has also decided
to raise the company>s authorised capital rom Hs 1 crore 015 la,h equity shares o Hs 15
each3 to Hs 15 crore 0one crore equity shares o Hs 15 each3.
The +ana#in# Lirector o the "$+, +r &.V. $handran, told Business Line that his
company had chosen the preerential issue route or its least cost proposition to stren#then
its capital 'ase, which is required to meet company>s e.pansion pro9ect. -e said an e.tra*
ordinary #eneral meetin# o the mem'ers o the company has 'een called on +ay 16 to
see, the shareholders approval or the preerential allotment.
These investments would also result in enhancin# the company>s turnover rom the present
Hs 86 crore to Hs 165 crore on completion o the pro9ects. "m'i,a $otton is eyein#
/urope and the )S as emer#in# mar,ets or its yarn e.ports.
"s per the present shareholdin# pattern o "$+, o the 15 la,h equity shares, the
promoters and their close relativesWassociates hold F6.11 la,h shares.
&a#e 13 o 25
8. Ma>or Competitors in the Mar!et
%N*5:NA? C/MP5*%*/:'
-alee' +il,
Blpers mil,
%ood +il,
Lairy @ueen +il,
5@*5:NA? C/MP5*%*/:'
L"NBN/
+!()&"
C/MP5*%*/:' A8$AN*AA5'
<e never compromise on quality and quantity
Bur e.tensive mil, collection system ensures that the +il, you #et is o the inest
quality.
Bur products are availa'le in every city and town
4. 'B/* Analysis
Bne opportunity that Nestle has is that health*'ased products are 'ecomin# more popular
in the world, includin# in the )nited States. $onsumers are 'ecomin# more health
conscious, and reali8e that livin# lon#er isn:t only 'y luc, and #enetics. ($1 has not 'een
introduced in the )nited States yet. Nestle also has an opportunity o 'ein# even a lar#er
mar,et leader in %ermany with ($*1. <ithin two years o launchin# the product in
%ermany, they had captured 65M o the mar,et. This was due to the act that they
dierentiated the product, and %ermans simply preerred the taste. "nother opportunity o
($1 is that, 'ecause they are a mar,et leader, they can introduce more health*'ased
products in %ermany.
" threat to Nestle is the act that some mar,ets they are enterin# are already mature.
Lanone had an esta'lished leadership position in the yo#urt mar,et in 2rance. Since
&a#e 14 o 25
Lanone was the irst to arrive in the mar,et, they have always 'een the mar,et leader
there. "lso consumers in 2rance li,ed the taste o ($*1, 'ut researchers 'elieve they did
not repurchase the yo#urt 'ecause they preerred the taste o Lanone products 'etter.
"nother threat to Nestle is that there is intense competition in the )nited States yo#urt
mar,et. %eneral +ills: Koplait division is the leader in the yo#urt mar,et in the )nited
States. Koplait has 'een the leader or years and is constantly innovatin# new health
products.
%eneral +ills has 'een a stron# competitor o Nestle and they are not short o e.perience
and stren#th. Bne stren#th that they have is their 'rand reco#nition. Bne o their main
#oals has 'een to deliver 'rands that consumers trust and value and they have succeeded.
"nother stren#th they have is their distri'ution. Koplait is distri'uted to more stores in the
)nited States than any other 'rand o yo#urt. This is one o the reasons why they have
'een the mar,et leader in yo#urt or so lon#. "nother stren#th that %eneral +ills has is the
act that consumers simply ,now Koplait is healthy. Koplait is the only leadin# 'rand o
yo#urt to oer vitamin L and this vitamin is especially important or adult women.
0Koplait.com3 !t is not 9ust a coincidence that Koplait has vitamin L, 'ut they have
purposely added this vitamin to tar#et emale consumers.
%eneral +ills also has some wea,nesses. They act that they are the mar,et leader in the
)nited States may 'e hinderin# them rom innovation. They have 'een producin# Koplait
yo#urt or many years, and have oered a series o new products in the past ew years in
the nutrition department. +ost o these products however, are very common, and are
widely oered in the )nited States. The health ood industry in the )nited States has 'een
'oomin# and %eneral +ills does not oer enou#h products in the smaller niche mar,ets.
They have not entered into many un,nown areas 'ecause o their success in the yo#urt
mar,et.
"n opportunity %eneral +ills has is that its Koplait division is so successul. Koplait is the
only division o %eneral +ills that is currently earnin# a proit. They have a lar#e mar,et
share over their main competitors in the yo#urt mar,et. "nother opportunity that they
share with Nestle is that the health*'ased and nutritional ood mar,et is 'oomin#. They are
continually releasin# and mar,etin# new products in these mar,ets and they will continue
to do so while the mar,et continues to yield proits.
&a#e 27 o 25
The main threat that challen#es %eneral +ills is that there is intense competition amon#st
the top players in the yo#urt and related mar,ets. Nutrition and health is 'ecomin# more
and more important to consumers in the )nited States, and worldwide. "lon# with this
comes increased competition to #ain mar,et share. Simple supply and demand theories are
prevalent in these mar,ets. "nother threat %eneral +ills has is that smaller companies are
producin# similar products with the same or added nutritional 'eneits.
'tren-ths
S,illed la'or.
/ducated sta.
(ar#e num'er o oerin#s.
&re purchase virtual display.
"rran#ement o events.
%ood 'ac,#round o the company.
/asy to approach outlets.
&hysical evidence Stron# ;rand ima#e
@uality product
Solid 2inancial position
Stron# supply chain networ,
@ualiied wor, orce
$ommitment to -i#h @uality &roducts
2ocus on research and development /stimations o )-T +il, &roduction and
$onsumption up to ?558^ 54
Kear "nnual &roduction
0million liters3 "nnual $onsumption
0million liters3
&a#e 21 o 25
2773C74 DE 1)3#)( (5(#21
2774C17 DE 25(#34 (22#75
Bea!nesses
&hysically impossi'ility to have tar#et mar,et.
There is wea, mar,etin# o +il,pa, as there is no advertisement o +il,pa, on
oicial we'site.
(ac, o awareness amon# the tar#et mar,et.
!t Lependency on others 0#ovt. T sponsors3 or the arran#ement o events. The
tar#et mar,et o Nestle +il,pa, is upper middle and hi#h class 'ecause lower middle
and poor class cannot aord to 'uy )-T mil, due to its premium price.
!t is a main wea,ness o mil,pa, that there are dierent companies o mil, 'ut the
name o nestle mil,pa, is always stand in the last 'ecause o low advertisin# and
mar,etin#.
/pportunities
!ncreasin# interest o people
F1'illion customers are there in &a,istan or mil,. )pton now only 6 'illion
customers are 'ein# acilitated.?7 'illion customer mar,ets is still availa'le to 'e
penetrated.
2ew and wea, competitors
/stimations o )-T +il, &roduction and $onsumption up to ?558^ 54
Kear "nnual &roduction
2773C74 _` 1)3#)( (5(#21
2774C17 _` 25(#34 (22#75
The pro9ected values o )-T +il, consumption and production are o'tained rom
the "H!+" model.
+ore people are comin# towards processed mil, 'ecause loose mil, is dan#erous
or health due to a lot o contamination.
&a#e 22 o 25
%rowth o processed mil, is increasin# with ?5M annually so Nestle +il,pa, has
the opportunity to capture a lar#e share o mar,et.
&a#e 2( o 25
*hreats
+a9or player may enter tar#et mar,et
(e#al and ethical issues.
+ar,et se#ment #rowth could attract new entrants.
/conomic slow down can reduce demand. Two main competitors -alee' and
Blpers are main threat or +il,pa, especially the Blpers is #rowin# very ast.
!nlation is #ettin# hi#her and hi#her so the purchasin# power o the people is
decreasin# day 'y day.
There is no entry 'arrier or new entrants as the Blpers has come in the mar,et.
Taste o consumer has already developed which is hard to chan#e
15. Conclusion
Problems <ace" By Nestle
Nestle is acin# the pro'lem that is re#ardin# the quality o mill . it is 'ein# perceive that
inant or child 'elon#in# to poor amily who use low quantity o mil, then required in
daily use are #ettin# eected.
!t is hard to a#ree the customer to swich to pac, mil, 'ecause o taste which is huredel or
urther e.pansion
:ecommen"ations
Nestle must state in writin# that it accepts that the international code and the su'sequent
relevant <orld -ealth "ssem'ly Hesolutions are minimum requirements or every
country.
Nestle must state in writin# that it will ma,e required chan#es to 'rin# its ;a'y 2ood
+ar,etin# policy and practice into line with !nternational $ode and Hesolutions.
&a#e 2) o 25
11. :eferences
www#nestle#com F Me"ia
wi!ipe"ia#or-&wi!i&NestlG
www#foo"an""rin!europe#com
www#foo"nai-ator#com
www#Aoo-le#com
www#share infoline#com
As!#com
share!hanCfirststep#com
&a#e 1 o 25