NESTLE

Introduction
Nestlé S.A. is a Swiss transnational food and drink company headquartered in Vevey, Vaud,

Switzerland. It is the largest food company in the world, measured by revenues and other

metrics, since 2014. It all began from a little venture by a Swiss pharmacist, Henri Nestlé, to

develop an alternative for infants who cannot be breastfed, with a combination of milk, wheat

flour, and sugar. Not only did this formula help reduce infant mortality from malnutrition across

Europe, but also formed the basis for the world’s largest food and beverages company. Nestlé

soon added chocolate, milk, and Nescafe coffee to its line of items through mergers and research.

Nestlé kept increasing the length and width of its product lines to cater to a wide range of

consumer needs. As Nestlé was making its operations global, it found an eager market in

Pakistan. Nestlé has been serving Pakistani consumers since 1988, when its parent company, the

Switzerland-based Nestlé SA, first acquired a share in Milk Pak Ltd. (Khan, 2011)

Headquartered in Lahore, the company operates four production facilities. Two of its factories in

Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and one in

Karachi produce bottled water. The factory in Kabirwala is the largest milk intake plant in the

Nestlé world. Nestlé Pakistan operates the biggest milk collection system in Pakistan, currently,

Nestlé Pakistan collects milk from an estimated 190,000 farmers spread over 146,000 sq km’s in

the province of Punjab and Sindh. (Head of Corporate Affairs, 2011). Company has ten regional

sales offices in following cities of Pakistan; Karachi, Hyderabad Sukkur, Lahore, Multan,

Faisalabad, Gujranwala, Quetta, Islamabad and Peshawa.

Till date, Nestlé Pakistan has invested over 50 Billion PKR and had an annual turnover of Rs 51

Billion PKR in 2010. (Head of Corporate Affairs, 2010)

Organization Structure

The departments are divided function-wise and product-wise. All the products use

differentfunctional departments, and all the functional departments have specific product

departments within them. Each department head has many direct and indirect reporting relations

with his subordinates. All employees have two or more departments to report

to, directly or indirectly. The Managing Direction of Pakistan reports directly to the Head Office

in Switzerland and gets guidance and objectives from them. The Business Executive Managers,

Head of Human Resource Department, Head of Sales Department, Head of Supply Chain, Head

of Food Services Department and Head of Technical Department report directly under

the Managing Director. While the departments such as, Head of Nutrition, Head of Waters and

UNDP Project have indirect reporting relationship with the Managing Director.

Nestle Factories

Nestle is operating a total of 436 factories in 85 countries worldwide. Nestlé is selling its

products in 189 countries. A total of about 335,000 employees are working with Nestlé.

In Pakistan, Nestlé collects milk from 140,000 farmers and working with 1154 suppliers,

operating 4 factories with the help of 4000+ employees managing 25+ brands and dealing with

250,000 retailers which complete their supply chain for all the consumer end products like Milk

Pack, Fruita Vitals, and Nestlé Water. The company estimates that a million people earn their

living with Nestlé in Pakistan, from employees, farmers and distributors to suppliers, transport

companies and retailers (Recorder report, 2017). Nestlé is also one of the top employers in

Pakistan, creating jobs in the local economy.

Nestle Products

Nestlé’s products are the focus of continual innovation and renovation so that they will be

relevant and appealing to today’s and tomorrow’s consumers.

Beverages

UHT Milk, is made through the process called as Ultra High Temperature Milk treatment.

Through this Process the Milk Becomes Suitable for Health and is done keeping the value of

consumer in mind. Some of Milk Related Products are; Nestle NIDO, Nestle NESVITA, Nestle

MILK PAK, Nestle EVERYDAY. A spring water under the Nestlé Aquarel brand was launched

in 2000.

Nutrition and Prepared dishes

A diversified range of soups, stocks, sauces and culinary preparations, primarily under the Maggi

brand, is adapted to local tastes, recipes and ingredients in each country. Maggi instant noodles

and Maggi stocking cubes.

Chocolate, Confectionery and Biscuits

The range includes international brands such as Nestlé, KitKat, Yorkie, and Caramac etc.
 REFERENCES

Baloch, F. (2014). Nestle Pakistan records 43% rise in net profit (EXPRESS TRIBUNE)

Khan, D. (2017). Project report on Strategic Marketing Nestle Company. (Academia)

Recorder Report. (2017). Nestle Pakistan Limited

Nestle Pakistan Internship Report (2018)

Nestle Pakistan Ltd (2016)

Management Report. (2000). Nestle Pakistan Ltd. (Academia)

Ayaz, Y. (2017). Financial management term project report on Nestle Pakistan Ltd. (Scribd)