Business Development

The rapidly evolving COVID-19 pandemic not only posed a health risk in 2020, but it also had
a significant impact on businesses and the global economy. The company committed to the
nation's fight against COVID-19 and faced the uncertainties by focusing on three key
priorities: "protecting the health and well-being of its people, ensuring business continuity
to meet consumer demand, and supporting communities through its relief efforts. The
company collaborated closely with employees, local communities, and business partners to
navigate the unprecedented times, reduce manufacturing complexities that arose as a result
of the lockdown, and make its products available to consumers with speed and agility.
During these difficult times, the company stood by nearly 100,000 dairy farmers, purchasing
every drop of milk they offered. To alleviate distress, the company continued to work closely
with its 3,500 coffee farmers, 1,250 spice growers, and extended its support to numerous
farmers in Karnataka by sourcing a substantial number of tomatoes from them through its
suppliers. Despite a challenging environment, your Company delivered robust growth across
all its categories, largely driven by volume and mix-led growth. NESCAFÉ, KITKAT, EVERYDAY,
MAGGI noodles, MASALA-Ae-MAGIC outperformed and continued to be significant growth
drivers. Due to an increase in in-home consumption, the Company delivered a strong
performance in the e-commerce channel. During these rapidly changing times, the company
continued its journey of innovation and renovation to meet consumer needs, and according
to Nielsen data, seven of the eight Nestlé brands held the number one position. With a
strong emphasis on innovation, the company has launched more than 80 new products in
the last five years and has been consistently present in 7935 urban towns. The company has
accelerated its digital engagements across key parts of its portfolio, as well as expanded
AskNestlé 2.0 to Hindi, an intuitive mobile website that provides real-time and personalised
nutrition advice. The company intends to invest $26 billion over the next three to four years
to expand its existing manufacturing capacities as well as in its new under construction
‘state-of-the-art' factory in Sanand, Gujarat, demonstrating your commitment to India. The
purpose of is to protect and preserve the environment in order to carve a sustainable
future. The Company has accelerated its actions to achieve net zero greenhouse gas (GHG)
emissions, sustainable logistics, responsible sourcing and less carbon footprint. We have
taken considerable steps towards reducing packaging consumption by 2,000 metric tons
from 2018 to 2020. Your Company continues to implement behaviour change initiatives
towards plastic waste management. The company promotes sustainable agriculture
practises for various crops, establishing long-term sourcing relationships that generate
economic stability for farmers and improve livelihood outcomes. Despite the challenges of
the times, the company has maintained its commitment to creating a better world not only
for its business, but also for individuals and families, communities, and the planet.
Below Key Performance Indicators (‘KPI’) reflect the Company’s intension on reducing the
food loss and wastages across value chain. The reduction is driven at the material usage
level and measured in value terms as well:
• Zero Loss Material Variance: Excessive usage / wastage of materials in
production beyond product manufacturing norms reflects wastage /
inefficiencies in the production process. As a result, this KPI is monitored to
ensure that resources are used in the most efficient manner possible.
• Obsolescence: Material that could not be used in the production process due to
quality incidents that render the product unfit for further use or due to planning
issues that cause a product to expire before use. This KPI is monitored to ensure
that materials are used before they expire, or else they contribute to food waste
and loss (in addition to monetary loss).
• Bad Goods: Finished Goods, which reach end of life and could not be sold, due
to mismatches of Demand vs Supply. Therefore, this KPI is tracked to ensure that
there is least amount of bad goods, thereby ensuring that food loss and waste is
reduced.
• Zero Waste to Landfill: In addition, all eight factories are “zero waste to landfill”,
which implies that all generated waste is either reused, recycled or co-processed