Nestl India is a subsidiary of Nestl S.A. of Switzerland.
With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. Nestls 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 Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias 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 Nestls 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. For more on Nestl Agricultural Services, click here. Nestl has been a partner in India's growth for over nine decades 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, MILO, 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 Fresh 'n' Natural Dahi and NESTL Jeera Raita. Nestl India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates.
After nearly a century-old association with the country, today, Nestl India has presence across India with 7 manufacturing facilities and 4 branc offices spread across the region.
Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nad 1967. Consequently, Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded b commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnaga Uttarakhand, in 2006.
The 4 branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon, Haryana.
* This pictorial representation does not purport to be the political map of India.
Company Profile Although Nestle has been associated with India since thebeginning of the century through the importing and trading of infantfood and condensed milk, manufacturing in India only began with thesetting up of the factory in Moga in 1962. The first product to bemanufactured wasMi lkmaid. In the last 35 years the company hasshown rapid progress and has increased its product range to 80products as of October 1997. Nestle India Ltd.
now ranks 22ndamongst Indias most valuable companies (Annexure B) . Its grossrevenue has increased from Rs 1001.1 crores to Rs. 1213.8 crores in1996. This remarkable growth has been achieved through Rapidly creating greater manufacturing capacity, both at factories as well as with co-packers. Taking measures to ensure availability and improved quality of key raw materials - fresh milk in particular. Strengthening of the sales and distribution network (particularly in smaller towns) Ambitious and cohesive manpower training and development programs for the personnel of the company across all disciplines
The companys exports also resulted in a very successful year inthis area as exports grew by 27% to Rs. 250.8 crores in 2003. Themain contributors to this increase were the export of tea and coffee toUSA, Japan, Russia, Hungary and Taiwan. Nestle India Ltd. wants to further increase its operations in Indiaand has started construction of its sixth Factory at Bicholim, Goa forthe manufacture of culinary products (a key thrust area) for this purpose.
The construction work at this new factory is progressing withspeed. This factory will soon commence the manufacture of culinaryproducts, which is a key thrust area for the company and will includelatest technological improvements relating to this category of products. As a part of Nestles efforts towards continuous improvementand excellence in Manufacturing operation, a Moga Improvement team(MIT) was put in place at the Moga factory. The team comprised ofinternational experts from Nestle Technical Services (NESTEC) andthe local staff. In 1996, it embarked on a program with the singleminded objective of optimizing production costs while enhancing theproduct quality so as to make Nestle products even more competitivein the market place. Drawing upon Nestles global experience andmanufacturing expertise in 75 countries the team identified thefollowing areas for detailed study Process improvement to ensure the optimal usage of resources Improvement of operational efficiency
Cost optimization A series of small but critically important initiatives ranging fromredesigning laboratories to palletisation of raw materials and packagingmaterial utilization, manufacturing and filling loses and labour manhours resulting in substantial savings and improved productivity and 17 machine utilization. In addition, several non tangible benefits in theform of systems for sustainable improvement in areas like factorymaintenance planning tools , down time recording systems andperformance measurement tools were also realized . This project was highly successful and the company is now implementing its key learnings of MIT in its other factories. In a country as vast and diverse as India, supply chain management is absolutely critical to rapid growth. Through BECA, Nestle has concentrated heavily on streamlining and improving theirsupply chain management in order to make it more dependable, morecost effective and most importantly, more responsive to market needs. For better supply chain integration the planning of keyoperations - purchase, production, distribution and sales aresynchronised to ensure that everybody works towards a commonbusiness plan. Monthly objectives are broken down into weekly and(wherever necessary) into daily plans and monitored regularly toensure smooth implementation and quick corrective action whenneeded . Major benefits accrued thus far include reduction in workingcapital through lower inventories of finished goods and materials, betterstock availability and reduction in obsolescence of materials. In addition to traditional performance indicators, quantifiable performance measures have been identified and implemented in all 18 functional areas such as sales planning, production output, qualityassurance, material ordering transportation and warehousemanagement. These measures are monitored regularly to gauge theextent of improvement and identify root problems for taking correctiveactions. Teams have been put in place at all factories and sales officesto ensure the implementation is continuous and self-sustaining. Areasof improvement are regularly identified and time bound action plansestablished. For this purpose, standard tools such a Total QualityManagement(TQM), Kaizen, 5S and Small Group improvement activity(SGIA) are being extensively used. The efficacy of this hierarchical structure is seen in Nestles performance over past few years of various products. By 1989 the company had achieved a sales figure ofapproximately Rs. 258 crores. 1989 was the year of launches. Sevennew product lines were launched in this year. This was also the year inwhich the Nanjagud factory was set up. By the year 1992, this salesfigure was touching Rs 500 crores. In the 1995 the pace of
launchesquickened and since the construction of the factory at Samalakha, 20new products have been introduced. By 2003, Nestle had about 76different products in its portfolio with various new products in thepipeline as well. The sales figure now touched Rs. 1214 crores. Thussales grew by 450% over a period of one and a half decades.
Nestle's mission
"To be in every way the leading company in the Indianfood industry and a good corporate citizen by
providingour consumers with superior quality products, ourshareholders with rapid growth and fair
returns and ouremployees with a challengin g and satisfying workenvironment." 38
To translate this spirit into a planned and measurableprocess, Nestle has set up key objectives
across alldivisions.
