Nestle

Nestl was founded in 1866 by Henri Nestl and is today the world's biggest food and
beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn.
Nestl employ around 250,000 people from more than 70 countries and have factories or
operations in almost every country in the world. The history of Nestl began in Switzerland
in 1867 when Henri Nestl, the pharmacist, launched his product Farine Lacte Nestl, a
nutritious gruel for children. Henri used hissurname, which means little nest, in both the
company name and the logotype. The nest, which symbolizes security, family and
nourishment, still plays a central role in Nestls profile. Since it began over 130 years ago,
Nestls success with product innovations and business acquisitions has turned it into the
largest Food Company in the world. As the years have passed, the Nestl family has grown to
include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other
food products. Beginning in the 70s, Nestl has continued to expand its product portfolio to
include pet foods, pharmaceutical products and cosmetics too. Today, Nestl markets a great
number of products, all with one thing in common: the high quality for which Nestl has
become renowned throughout the world The Company's strategy is guided by several
fundamental principles. Nestl's existing products grow through innovation and renovation
while maintaining a balance in geographic activities and product lines. Long-term potential is
never sacrificed for short-term performance. The Company's priority is to bring the best and
most relevant products to people, wherever they are, whatever their needs, throughout their
lives. Taste of Nestl in each of the countries where Nestl sell products.

Nestle India

NESTL's relationship with India dates back to 1912, when it began trading as The NESTL
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.

After India's independence in 1947, the economic policies of the Indian Government
emphasised the need for local production. NESTL 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 NESTL to develop the milk economy. Progress in Moga required the
introduction of NESTL's Agricultural Services to educate, advise and help the farmer in a
variety of aspects. From increasing the milk yield of their cows through improved dairy
farming methods, to irrigation, scientific crop management practices and helping with the
procurement of bank loans.

NESTL set up milk collection centres that would not only ensure prompt collection and pay
fair prices, but also instil amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and sustainable basis that has
resulted in not just the transformation of Moga into a prosperous and vibrant milk district
today, but a thriving hub of industrial activity, as well.

NESTL has been a partner in India's growth for over a century now and has built a very
special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging materials, services and
other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness
through its product offerings. The culture of innovation and renovation within the Company
and access to the NESTL Group's proprietary technology/Brands expertise and the
extensive centralized Research and Development facilities gives it a distinct advantage in
these efforts. It helps the Company to create value that can be sustained over the long term by
offering consumers a wide variety of high quality, safe food products at affordable prices.

NESTL India manufactures products of truly international quality under internationally

famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced products of
daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and
NESTL Jeera Raita.

NESTL India is a responsible organisation and facilitates initiatives that help to improve the
quality of life in the communities where it operates
Founders profile

Heinrich Nestle was born on 10 August 1814, in Frankfurt am Main, Germany. He was the
eleventh of fourteen children of Johann Ulrich Matthias Nestle and Anna-Maria Catharina
Ehemant. Nestle's father, by tradition, inherited the business of his father, Johann Ulrich
Nestle, and became a glazier in Tngesgasse. The later Lord Mayor of Frankfurt am Main,
Gustav Edmund Nestle, was his brother. Before Nestl turned 22 in 1836, he had completed a
four-year apprenticeship with J. E. Stein, an owner of a pharmacy. Although the exact date is
unknown, at some stage between 1834 and 1839 he had migrated for reasons unknown to
Switzerland. At the end of 1839, he was officially authorized in Lausanne, Switzerland, to
perform chemical experiments, make up prescriptions, and sell medicines. During this time,
he changed his name to Henri Nestl in order to adapt better to the new social conditions in
French-speaking Vevey, Switzerland, where he eventually settled.

In 1843 Henri Nestl bought into one of the region's most progressive and versatile industries
at that time, the production of rapeseeds. He also became involved in the production of nut
oils (used to fuel oil lamps), liqueurs, rum, absinthe, and vinegar. He also began
manufacturing and selling carbonated mineral water and lemonade, although during the crisis
years from 1845 to 1847 Nestl gave up mineral water production. In 1857 he began
concentrating on gas lighting and fertilizers.

It is not known when Nestl started working on the infant formula project, although by 1867
Nestl was able to produce a viable powdered milk product. His interest is known to have
been spurred by several factors. Although Nestl and his wife were childless, they were aware
of the high death rate among infants. Nestl would have been aware of Justus von Liebig's
work in developing an infant formula. In addition, fresh milk was not always available in
large towns and women in higher society were starting to view breast feeding as an
"unfashionable" option

Vision of Nestl

Nestl's vision of making good food central to enjoying a good healthy life for consumers
everywhere. This implies gaining a deeper understanding in many areas of nutrition andfood
research and transforming the scientific advances into applications for the company. Having a
broad vision the company is doing its best for their consumers to show the great sense of
responsibility.
Nestls aim is to meet the various needs of the consumer every day by marketing and
selling food of a consistently high quality.

The confidences that consumers have in our brands is a result of our companys many years
of knowledge in marketing, research and development, as well as continuity -consumers
relate to this and feel they can trust our products

Nestle product profile

With a diverse portfolio of drinks, Nestl offers many sources of nourishment and
refreshment. Whether its for the healthy development of children, sports, a special treat or
everyday refreshment, Nestl products deliver taste and health.

Nestl produces a lot of products related to beverages and drinks but there are only a few of
its brands that are ready to drink beverages and drinks. Only those brands are being looked
upon in this matter of study.

Nestl ready to drink beverages and drink brands and their product profiles are as follows

Nestl Milo
Tasty and trusted, Milo brand is the worlds leading chocolate malt beverage that can be
prepared with hot or cold milk or water. It offers essential vitamins and minerals to meet
the nutrition and energy demands of young bodies and minds. Launched in Australia in the
early 1930s, the Milo brand takes kids' development seriously. It has long been known as
an energy beverage strongly associated with sports and good health.
 In helping to nurture strong kids, Milo brand supports nutrition and sports programmes in
many countries. In Australia we sponsor the Milo in2CRICKET program. Founded in
1996, the programme is recognised as Australian cricket's premier junior development
programme. It provides children aged 5 to 10 years with the opportunity to learn cricket
skills, make new friends, develop team skills and have fun.

Most commonly sold as a powder in a green tin, often depicting various sporting activities,
Milo is available as a premixed beverage in some countries, and has been subsequently
developed into a snack bar and breakfast cereal. Its composition and taste differ in some
countries.

Nestl Nesquik
Nesquik brand offers quick and easy ways to complement the natural nutrition of milk and
make irresistibly delicious drinks. Nesquik is a brand of products made by Nestl. In 1948,
Nestl launched a mix for chocolate-flavoured milk called Nestle Quik. This was released
in Europe during the 1950s as Nesquik. Nesquik name appears on a wide range of
products, including breakfast cereals, powdered mixes for flavoured milk, syrups, ready to
drink products, candy bars, chocolate fondue fountains, hot cocoa mix, and more.

Nestl introduced Ready-to-Drink Nesquik (Quik at the time) Chocolate Milk in 1983.
Strawberry was added in 1987, and Banana was added in 1990. Vanilla and Double
Chocolate are also available. Fat-Free Nesquik Chocolate Milk was introduced in 1998.
Nesquik Milkshakes come in Chocolate and Strawberry. Chocolate Caramel was
introduced in 2007. Nestl introduced Nesquik "Magic" Straws in 2008. The ready-to-
drink versions of Nesquik ended production in 2009 in the UK.

Nestl Nestea
Nestea is a brand of iced tea manufactured by Coca-Cola and distributed by Nestl
Companys beverage department in the United States and by Beverage Partners Worldwide
(BPW), a joint venture between The Coca-Cola Company and Nestl, in the rest of the
world. It competes with Unilever/PepsiCo's Lipton Iced Tea and Brisk. It provides a
variety of tea products, in regular and diet forms, including liquid and powdered tea
concentrates, refrigeratable teas, and ready-to-drink bottles dispensed by vendor or
vending machine. The beverage comes in several flavours, depending on the country.

In January 2012, it was announced that the joint venture between Coca Cola and Nestl
would be phased out by the end of the year in the United States. Nestl retained the right
 to the Nestea brand name, while Coca Cola continues to manufacture the same drink under
another brand, Fuze.

Bottled Water
Henri Nestls water bottling factory was the earliest incarnation of what would eventually
become the worlds leading bottled water company. Nestl took a step onto the world stage
with giants such as Perrier and Nestl Pure Life. This is commercialized since 1998. Today
this impressive portfolio encompasses 50 brands on five continents.

Details of Nestls Products (all products along with brand names)

Coffee

Nescaf, Tasters Choice, Ricor, Ricoffy, Nespresso,Bonka, Zogas, Loumidis

Water

Nestl Pure Life, Nestl Aquarel, Perrier, Vittel, Contrex, S.Pellegrino, Acqua Panna,
Levissima, Arrowhead, PolandSpring, Deer Park, Ozarka, Hpar, Ice Mountain, Zephyrhills

Other beverages

Nestea, Nesquik, Nescau, Milo, Carnation, Libbys, Caro, Nestomalt, Nestl

Shelf stable

Nestl, Nido, Nespray, Ninho, Carnation, Milkmaid, LaLechera, Moa, Klim, Gloria, Svelty,
Molico, Nestl OmegaPlus, Bear Brand, Coffee-Mate,milk pak,yougart

Chilled

Nestl, Sveltesse, La Laitire, La Lechera, Ski, Yoco,Svelty, Molico, LC1, Chiquitin

Ice cream

Nestl, Antica Gelateria del Corso, Dreyer's/Edy's,Drumstick/Extrme, Maxibon/Tandem, M

ega, Mvenpick,Sin Parar/Sem Parar/Non Stop

Infant nutrition

Nestl, Nan, Lactogen, Beba, Nestogen, Cerelac, Neslac, Nestum, Guigoz, Good Start
Performance nutrition

PowerBar, Pria, Musashi

HealthCare nutrition

Nutren, Clinutren, Peptamen, Modulen

Bouillons, soups, seasonings, pasta,sauces

Maggi, Buitoni, Thomy, Winiary, Torchin

Frozen foods

Stouffers, Lean Cuisine, Hot Pockets, Buitoni, Maggi

Refrigerated products

Nestl, Buitoni, Herta, Toll House

Chocolate and biscuits

Nestl, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties, Butter finger, Aero, Polo

Cosmetics

Biotherm, Body Shop , Cosmence, Garnier, Helena Rubenstein, Innov , La Roche-Posay,

Lancme, L'Oreal ,Matrix , Maybe line ,Metamorphosis ,Plenitude ,Red ken

Pet food

Arthur's, Bakers, BETA, Bonio, Felix, Friskies Go-Cat, Go-dog, Pro Plan, Purina, Spiller's
Winalot.

Cereals

Cheerios & Honey Nut Cheerios, Cinnamon and Golden Grahams ,Clusters, Cookie Crisp
Shreddies , Fibre 1,Fitnesse ,Force Flakes Fruitful ,Golden Nuggets ,Nesquik cereal Shredded
Wheat including: Bite size, Fruitful, Honey Nut, Shred dies: Coco and frosted

Nestl Organizational Structure

Nestl has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who was the
former Nestl CEO. The day-to-day management of the Nestl business is taken care of by
our Executive Board. The 13 designated Board Members manage diverse parts of the global
business.

The Nestl Group is managed by geographies - Zones EMENA (Europe, Middle East and
North Africa), Americas and Asia/Oceania/sub-Saharan Africa - for most of the food and
beverage business, with the exceptions of our globally managed businesses, which include
Nestl Waters, Nestl Nutrition, Nespresso, Nestl Health Science and Nestl Skin Health.
Nestl also has joint ventures with companies such as Cereal Partners Worldwide and
Beverage Partners Worldwide.

Nestle Company is a decentralized organization that is organized according to the matrix

structure. Nestle as a decentralized organization permits to subordinate branches to enjoy a
proportionately high-level of independence. Although it still makes major strategy decisions
at the headquarter level, daily operations are left up to subordinate branches to derive and
perform. The responsibility for operating decisions is push down to local units

Nestle, over its long historical development from a small village operation to the world's
leading food Company, has illustrate an excellent capability to adjust to an ever-changing
external environment, without losing its basic beliefs and core values, so important for long-
term success. Over the years to come, this capability will continue to be challenge even more
as Nestle is growing in size and complexity up to a dimension, which demands a continuous
development of its organisation and of the way in which it run
The Organizational Structure of Nestl S.A. Worldwide:
Nestle India key executives

Present market share

Nestl India Ltd continued to lead coffee with a value share of 36% in 2016.
Nestls market share in chocolates has fallen from 29% in 2006 to 14% now and is expected
to be at a CAGR of 13% over CY16E-18E

Nestls market share in Prepared Dishes and Cooking Aids to grow at a CAGR of 19.3%
Nestle said it has 23.8% in ketchup and sauces, and 56.7% share in pasta

Nestls market share in Milk Products and Nutrition Market is 22.1% over last five years

Nestle India Ltd.s instant noodle brand Maggi, whose sales were severally hit by the Food
Safety and Standards Authority of India (FSSAI) ban last year, has regained its leadership
position capturing 57% share of the market in June this year.

Future Strategies
The Nestl Strategic Roadmap is the compass that guides the organisation, driving internal
alignment behind the goals. The roadmap shows how they deliver profitable growth, the
competitive advantages that they leverage and the organisation they have chosen, in order to
be effective and efficient. It is the framework that the company uses to establish priorities and
drive execution.

In addition, the company has set out six strategic priorities.

Firstly, Make Choices: put resources behind the ideas, products and categories that help the
company on the journey to recognised Nutrition, Health and Wellness leadership, and to
deliver sustained financial performance.

Secondly, Grasp Opportunities: see the opportunity in change and trends, and translate them
into concrete business opportunities.

The third is Value What Consumers Value: all that the company does should create value for
consumers and drive out waste.

Fourth, Engage with Stakeholders: the company wants to be trusted by all consumers and
stakeholders as a genuine and responsible member of the community.

Fifth, Embrace Digital: deepen the connection with consumers through the growing e-
commerce channel and through real-time listening, engagement and dialogue.

Sixth is Win through People and Teams: the company needs the right people with the right
capabilities and effective leadership at all levels to engage, empower and enable everyone to
give their best.

As the company strives to become a more agile and higher-performing organisation they
ensure that they embed strong culture and values across all its operating companies,
especially those that are newly acquired, all within the framework of compliance which
governs all that the company does. The company takes a long-term view, framed in a robust
set of principles and values that are based on respect: respect for people, respect for future
generations, respect for the environment and respect for the diverse world we live in.
Financials

(In cr. Rupees)

Total revenue

2015-16 8,285.40 2014-15 9,942.16

Profit/Loss for the Period

2015-16 563.27 2014-15 1,184.69

Accounting ratio analysis

Dec 14 Dec 13 Dec 12 D

Dec 15

Per Share Ratios

Basic EPS (Rs.) 58.42 122.87 115.87 110.76
Diluted EPS (Rs.) 58.42 122.87 115.87 110.76
Cash EPS (Rs.) 94.43 157.87 150.08 139.50 1
Book Value [Excl Reval Reserve]/Share
292.25 294.26 245.67 186.52 1
(Rs.)
Book Value [Incl Reval Reserve]/Share
292.25 294.26 245.67 186.52 1
(Rs.)
Dividend / Share(Rs.) 48.50 63.00 48.50 48.50
Revenue from Operations/Share (Rs.) 847.89 1,022.07 943.90 864.40 7
PBDIT/Share (Rs.) 172.68 219.78 210.61 192.53 1
PBIT/Share (Rs.) 136.67 184.77 176.39 163.79 1
PBT/Share (Rs.) 84.38 184.02 174.03 161.03 1
Net Profit/Share (Rs.) 58.42 122.87 115.86 110.76
Profitability Ratios
PBDIT Margin (%) 20.36 21.50 22.31 22.27
PBIT Margin (%) 16.11 18.07 18.68 18.94
PBT Margin (%) 9.95 18.00 18.43 18.62
Net Profit Margin (%) 6.88 12.02 12.27 12.81
Return on Networth / Equity (%) 19.98 41.75 47.16 59.38
Return on Capital Employed (%) 12.23 26.53 22.49 26.53
Return on Assets (%) 9.26 20.35 17.69 20.68
Total Debt/Equity (X) 0.01 0.01 0.50 0.58
Asset Turnover Ratio (%) 134.45 169.34 144.13 161.39 1
Liquidity Ratios
Current Ratio (X) 1.68 1.45 1.71 1.31
Quick Ratio (X) 1.12 0.83 1.16 0.65
Inventory Turnover Ratio (X) 9.96 11.67 12.37 11.18
Dividend Payout Ratio (NP) (%) 83.01 51.27 41.85 43.78
Dividend Payout Ratio (CP) (%) 51.35 39.90 32.31 34.76
Earnings Retention Ratio (%) 16.99 48.73 58.15 56.22
Cash Earnings Retention Ratio (%) 48.65 60.10 67.69 65.24
Valuation Ratios
55,674.1
Enterprise Value (Cr.) 61,087.78 51,516.21 48,930.67 40,9
5
EV/Net Operating Revenue (X) 6.81 6.20 5.66 5.87
EV/EBITDA (X) 33.44 28.83 25.37 26.36
MarketCap/Net Operating Revenue (X) 6.87 6.24 5.61 5.77
Retention Ratios (%) 16.98 48.72 58.14 56.21
Price/BV (X) 19.93 21.68 21.56 26.76
Price/Net Operating Revenue 6.87 6.24 5.61 5.77
Earnings Yield 0.01 0.02 0.02 0.02
Achievements

Nestle received a prestigious award from the World Environment Centre in 2013.The Quality
Management System of Nestle provides food safety and compliance with quality standards.
The organization applies internationally recognized Good manufacturing Practices (GMP) to
ensure quality and food safety.

Nestle Maggi quality check In June, 2014 Nestle has won the International Coaching
Federations Prism award in Switzerland for outstanding organization coaching.

In 2012, it was listed as number 18 in the annual supply chain top 25 organizations in the
world.

Nestle also received several prestigious awards such as Global Food Industry Award, Great
Place to work Award.

Nestle chocolates Nestle had been ranked at significant position in the list of 10 most
admired companies in the world for four consecutive years, making it the only food giant to
hold such a place

In May 2006, Nestl's executive board decided to adapt the existing Nestl management
systems to full conformity with the international standards ISO 14001 (Environmental
Management Systems) and OHSAS 18001 (Occupational Health and Safety Management
Systems) and to certify all Nestl factories against these standards by 2010. In the meanwhile,
a lot of the Nestl factories have obtained these certifications.

Nestl Purina received in 2010 the Malcolm Baldrige National Quality Award for their
excellence in the areas of leadership, customer and market focus, strategic planning, process
management, measurement, analysis and knowledge management, workforce focus and
results.

In March 2011, Nestl became the first infant formula company to meet the FTSE4Good
Index criteria in full.

In September 2011, Nestl occupied 19th position in the Universum's global ranking of Best
Employers Worldwide. According to a survey by Universum Communications, Nestl was, in
2011, the best employer to work for in Switzerland.
The International Union of Food Science and Technology (IUFoST) honoured Nestl in 2010
with the Global Food Industry Award.

In May 2011, Nestl won the 27th World Environment Center (WEC) Gold Medal award for
its commitment to environmental sustainability.

On 19 April 2012, The Great Place to Work Institute Canada mentioned Nestl Canada Inc.
as one of the '50 Best Large and Multinational Workplaces' in Canada (with more than 1,000
employees working in Canada and/or worldwide).

On 21 May 2012, Gartner published their annual Supply Chain Top 25, a list with global
supply chain leaders. Nestl ranks 18th in the list.

In September 2012, Nestl was among the top-scoring companies on the Climate Disclosure
Leadership Index (CDLI)

In 2013, Nestl retained its number one position in charity Oxfam's sustainability scorecard
and improved its ratings on the issues of land, workers, and climate.

In 2014, Nestl received the Henry Spira Corporate Progress Awards for altering its policies
and practices to minimize adverse impacts on animals.

In March 2015, Nestl ranked second in Oxfam's Behind the Brands scorecard, where the
NGO ranks the world's 'Big 10' consumer food and beverage companies on their policies and
commitments to improve food security and sustainability. Nestl assumed the number one
ranking for land rights while the company also outperformed its peers on transparency and
water
Refrences

https://www.nestle.in/aboutus/allaboutnestl%C3%A9

https://www.scribd.com/doc/21544545/Introduction-Nestle-Was-Founded-in-1866-by-Henri-
Nestle-And

http://www.moneycontrol.com/financials/nestleindia/

https://successstory.com/companies/nestle

https://www.nestle.in/investors/directorsofficers

http://www.euromonitor.com/coffee-in-india/report

https://www.karvyonline.com/viewdocument.aspx?DocumentID=13869