28-11-2012, 01:45 PM
NESTLE INDIA LIMITED
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Group Background
Nestle SA, Switzerland is amongst the world’s largest food and beverages companies. The company
is progressively evolving from a respected, trustworthy food and beverage company to a respected,
trustworthy food, beverage, nutrition, health and wellness company. This objective is encapsulated
in “Good Food, Good Life”. The principle activities of the group encompass: beverages, milk
products, nutrition and ice cream; prepared dishes and cooking aids; chocolate, confectionery
and biscuits; water; and pet care. It has 511 factories in 86 countries around the world.
Background - Nestle India
With an employee-strength of over 3000 and
turnover of US$ 497 million in 2003, Nestle India is
one of the leading companies in the FMCG space in
India. The company is acknowledged amongst India’s
‘Most Respected Companies’ and amongst the ‘Top
Wealth Creators of India’.
Major player in processed foods
Nestlé India has over the years built strong brands
like MAGGI, NESCAFE, CERELAC, LACTOGEN,
KITKAT and POLO. Nestle is major player in many
segments of the FMCG sector such as noodles and
sauces [MAGGI], instant coffee [NESCAFE] and
weaning foods.
Nestle products are sold throughout India and are
also exported to Russia, Hungary, Japan, USA and
several other countries. These include certain
international products like Nescafe and Lactogen, as
well as select culinary products to meet the demand
of the ethnic Indian population living abroad.
Factors for success
The culture of innovation and renovation, continuous
improvement and the thrust on value-for-money and
affordability have helped the company to focus on
adding value for the consumer. The company has
continuously focused on operational efficiency;
improving product availability and visibility and
initiated efforts to make its products more relevant
to the consumers. This has been supported by the
distribution of smaller stock-keeping units (SKUs).
There has been continuous focus on the seven value
drivers, namely:
• Sales growth
• Profit margin
• Working capital intensity
• Fixed capital intensity
• Income tax rate
• Cost of capital
• Value growth duration