1.

INTRODUCTION
Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's leading nutrition, health and wellness company. Sales for 2007 were CHF 107.6 bn, with a net profit of CHF 10.6 bn. We employ around 276 050 people and have factories or operations in almost every country in 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. We demonstrate through our way of doing business in all the countries where we are present a deep understanding of the local nature of nutrition, health and wellness; we know that there is no one single product for everyone - our products are tailored to suit tastes and habits wherever you are.

2. HISTORY OF NESTLE INDIA

1866-1905 The key factor which drove the early history of the enterprise that would become The Nestl Company was Henri Nestl's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast. In the mid-1860s Nestl, a trained pharmacist, began experimenting with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition.

He called the new product Farine Lacte Henri Nestl. Nestl's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and had been given up for lost by local physicians. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life and within a few years, Farine Lacte Nestl was being marketed in much of Europe. Henri Nestl also showed early understanding of the power of branding. He had adopted his own coat of arms as a trademark; in his German dialect, Nestl means 'little nest'. One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. His response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I cannot have a different trademark in every country; anyone can make use of a cross, but no-one else may use my coat of arms." Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid-1870s to include cheese and infant formulas.The Nestl Company, which had been purchased from Henri Nestl by Jules Monnerat in 1874, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905. Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbor of Henri Nestl, started a company that quickly became the world's leading maker of chocolate and later merged with Nestl. In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. His instant pea and bean soups helped launch Maggi & Company. By the turn of the century, his company was producing not only powdered soups, but also bouillon cubes, and sauces and flavorings. 1905-1918 The Company formed by the 1905 merger was called the Nestl and Anglo-Swiss Milk Company. By the early 1900s, the Company

was operating factories in the United States, Britain, Germany and Spain. In 1904, Nestl added chocolate to its range of food products after reaching an agreement with the Swiss General Chocolate Company. Condensed-milk exports increased rapidly as the Company replaced sales agents with local subsidiary companies. In 1907, the Company began full-scale manufacturing in Australia, its second-largest export market. Warehouses were built in Singapore, Hong Kong, and Bombay to supply the rapidly growing Asian markets. Most production facilities remained in Europe, however, and the onset of World War I brought severe disruptions. Acquiring raw materials and distributing products became increasingly difficult. Fresh-milk shortages throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns. Nevertheless, the war created tremendous new demand for dairy products, largely in the form of government contracts. To keep up, Nestl purchased several existing factories in the United States. By war's end, the Company had 40 factories, and its world production had more than doubled since 1914. 1918-1938 The end of World War I brought with it a crisis for Nestl. Government contracts dried up following the cessation of hostilities, and civilian consumers who had grown accustomed to condensed and powdered milk during the war switched back to fresh milk when it became available again. In 1921, the Company recorded its first loss. Rising prices for raw materials, the worldwide postwar economic slowdown, and deteriorating exchange rates deepened the gloom. Nestl's management responded quickly, bringing in Swiss banking expert Louis Dapples to reorganize the Company. He streamlined operations to bring production in line with sales and reduced the Company's outstanding debt. The 1920s also saw Nestl's first expansion beyond its traditional product line. The manufacture of chocolate became the Company's second most important activity. New products appeared steadily: malted milk, a powdered beverage called Milo, a powdered buttermilk for infants, and, in 1938, Nescaf.

The Brazilian Coffee Institute first approached Louis Dapples in 1930, seeking new products to reduce Brazil's large coffee surplus. Eight years of research produced a

soluble powder that revolutionized coffee-drinking habits worldwide. Nescaf became an instant success and was followed in the early 1940s by Nestea. 1938-1944 The effects of the onset of World War II were felt immediately by Nestl. Profits dropped from $20 million in 1938 to $6 million in 1939. Neutral Switzerland became increasingly isolated in a Europe at war, and the Company transferred many of its executives to offices in Stamford, Connecticut. The first truly global conflict ended forever the traditional Company structure. To overcome distribution problems in Europe and Asia, factories were established in developing countries, particularly in Latin America. Ironically, World War II helped speed the introduction of the Company's newest product, Nescaf. After the United States entered the war, Nescaf became a staple beverage of American servicemen serving in Europe and Asia. Annual production levels reached one million cases by 1943. As in World War I, production and sales rose in the wartime economy: Nestl's total sales jumped from $100 million in 1938 to $225 million in 1945. As the end of the war approached, Nestl executives found themselves unexpectedly heading up a worldwide coffee concern, as well a company built upon Nestl's more traditional businesses. 1944-1975 The close of World War II marked the beginning of the most dynamic phase of Nestl's history. Throughout this period, Nestl's growth was based on its policy of diversifying within the food sector to meet the needs of consumers. Dozens of new products were added as growth within the Company accelerated and outside companies were acquired. In 1947, Nestl merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestl Alimentana Company. The acquisition of Crosse & Blackwell, the British manufacturer of preserves and canned foods, followed in 1960, as

did the purchase of Findus frozen foods (1963), Libby's fruit juices (1971) and Stouffer's frozen foods (1973).

Meanwhile, Nescaf continued its astonishing rise. From 1950 to 1959, sales of instant coffee nearly tripled, and from 1960 to 1974, they quadrupled. The Company's total sales doubled twice in the 15 years after World War II. The development of freeze-drying led to the introduction, of Taster's Choice instant coffee, in 1966. Finally, Nestl management reached the decision to diversify for the first time outside the food industry. In 1974, the Company became a major shareholder in L'Oral, one of the world's leading makers of cosmetics 1975-1981 After the agreement with L'Oral in 1974, Nestl's overall position changed rapidly. For the first time since the 1920s, the Company's economic situation deteriorated as the price of oil rose and growth in the industrialized countries slowed. In addition, foreign exchange rates deteriorated with the French franc, dollar, pound sterling, and mark all losing value relative to the Swiss franc. Finally, between 1975 and 1977, the price of coffee beans quadrupled, and the price of cocoa tripled. As in 1921, the Company was forced to respond quickly to a radically changed marketplace. Nestl's rapid growth in the developing world partially offset a slowdown in the Company's traditional markets, but it also carried with it the risks associated with unstable political and economic conditions. To maintain a balance, Nestl made its second venture outside the food industry by acquiring Alcon Laboratories, Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products. Taking such a step in a time of increased competition and shrinking profit margins required boldness and vision. Even more than the L'Oral move, Alcon represented a leap into unknown waters for Nestl. But, as Group Chairman Pierre Liotard-Vogt noted, "Today we find ourselves with a very wide range of activities, all of which have one thing in common: they all contribute to satisfying the requirements of the human body in various ways." 1981-1995 Under a new Chief Executive Officer, Helmut Maucher, Nestl approached the 1980s with a renewed flexibility and determination to evolve. The Company's strategy for this period

was twofold: improve its financial situation through internal adjustments and divestments, and continue its policy of strategic acquisitions.

Thus, between 1980 and 1984, the Company divested a number of non-strategic or unprofitable businesses. At the same time, Nestl managed to put an end to a serious controversy over its marketing of infant formula in the Third World. This debate had led to a boycott of Nestl products by certain lay and religious organizations. This issue is still alive in some quarters, but there is no longer any significant boycott activity. In 1984, Nestl's improved bottom line allowed the Company to launch a new round of acquisitions, including a public offer of $3 billion for the American food giant Carnation. At the time, the takeover, sealed in 1985, was one of the largest in the history of the food industry. 1996-2002 The first half of the 1990s proved to be a favorable time for Nestl: trade barriers crumbled and world economic markets developed into a series of more or less integrated trading areas. The opening of Central and Eastern Europe, as well as China, and a general trend towards liberalization of direct foreign investment was good news for a company with interests as far-flung and diverse as Nestl. While progress since then has not been as encouraging, the overall trends remain positive. In July 2000, Nestl launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed at harmonizing and simplifying business process architecture; enabling Nestl to realize the advantages of a global leader while minimizing the drawbacks of size. There were two major acquisitions in North America in 2002: in July, Nestl announced that the U.S. ice cream business was to be merged into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc. , a leading U.S.-based hand-held frozen food product business. Also in 2002, the joint venture Dairy Partners Americas was set up with Fonterra; and Laboratoires innov was set up, another joint venture, this time with L'Oral. 1996-2002 The first half of the 1990s proved to be a favorable time for Nestl: trade barriers crumbled and world economic markets developed into a series of more or less integrated trading areas. The opening of Central and Eastern Europe, as well as China, and a general

trend towards liberalization of direct foreign investment was good news for a company with interests as far-flung and diverse as Nestl. While progress since then has not been as encouraging, the overall trends remain positive.

In July 2000, Nestl launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed at harmonizing and simplifying business process architecture; enabling Nestl to realize the advantages of a global leader while minimizing the drawbacks of size. There were two major acquisitions in North America in 2002: in July, Nestl announced that the U.S. ice cream business was to be merged into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc. , a leading U.S.-based hand-held frozen food product business. Also in 2002, the joint venture Dairy Partners Americas was set up with Fonterra; and Laboratoires innov was set up, another joint venture, this time with L'Oral. 2003+ The year 2003 started well with the acquisition of Mvenpick Ice Cream, enhancing Nestl's position as one of the world market leaders in this product category. The years that followed saw consistent business growth through innovation and renovation of the products. In 2006, Jenny Craig, the USA weight management company and Uncle Toby's were acquired as well as Delta Ice Cream. Nestl made three significant acquisitions in 2007. The first was Novartis Medical Nutrition which put Nestl in a a strong number two position globally for healthcare nutrition. Gerber, the iconic US baby food brand was the second acquisition and the third was the Swiss water company, Sources Minrales Henniez S.A.

The end of 2007 was marked by a strategic partnership with the Brussels-based luxury chocolate maker Pierre Marcolini. The move underlines Nestl's commitment to excel in the premium and luxury chocolate market.

The Company's strategy will continue to be guided by several fundamental principles. Nestl's existing products will grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential will never be sacrificed for short-term performance. The Company's priority will be to bring the best

and most relevant products to people, wherever they are, whatever their needs, throughout their lives, and to satisfy the growing need of nutrition, health and wellness that food and beverages can bring.

KEY DATES

1866 1877 1905 1929 1934 1938 1948 1969 1974 1977 1985 1988 1990 1991 1992 2000 2001 2003 2006 2007

Key Dates Foundation of Anglo-Swiss Condensed Milk Co. Henri Nestl develops infant cereal Nestl merges with Anglo-Swiss merger with Peter, Cailler, Kohler Milo launched launch of Nescaf launch of Nestea and Nesquik Vittel (initially equity interest only) L'Oral (associate) Nestl S.A. (new company name), Alcon Carnation (with Coffee-Mate and Friskies) Buitoni-Perugina, Rowntree Cereal Partners Worldwide Beverage Partners Worldwide Perrier PowerBar Ralston Purina Mvenpick and Dreyer's creation of FoodServices SBU, Jenny Craig, Uncle Toby's Novartis Medical Nutrition, Gerber, Henniez

4. MARKETING AND COMMUNICATION

We are very conscious of our role in communicating responsibly to consumers, and particularly to children, which is why all Nestl companies are required to abide by the NESTLE CORPORATE BUSINESS PRINCIPLES. Information on our policies relating to the mareketing of infant principle can be found in the Infant Health and Nutrition section of this website. As part of our overall responsibilities to consumers, we are committed to:

clear, user-friendly labelling and supporting materials to help consumers make well-informed food choices responsible communication about all products, especially those consumed by children, in line with applicable laws and our Corporate Business Principles participation in and support for public nutrition education programs collaboration with public health bodies to work towards healthier diets and lifestyles.

4.1 NESTLE CORPORATE BUSINESS PRINCIPLES

Nestl's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestl does not favor short-term profit at the expense of successful long-term business development. Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust, and that without its consumers the Company would not exist. Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. Nestl is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.

Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

4.2 PRODUCT AND CONSUMER

Nestls core business strategy is Nutrition, Health and Wellness offering products of superior value to those of our competitors, which improves both consumer well-being and Nestl sales results. By responding to consumers changing needs, integrating further into society and communicating clearly, our brands and customer loyalty are strengthened, bringing long-term enhanced growth, market share and profitability. Increasing numbers of consumers get access to safe, high-quality, nutritious food products. They also gain a greater knowledge of health issues, as well as a better understanding of how they and their families can use Nestl products for a safe, healthy and enjoyable diet.

5. The Nestl Leadership: Adding Value

Members of the Nestl Management at all levels are more concerned with continuously adding value to the Company than exercising formal authority. This can only materialize with a high involvement of each employee and a common mindset geared to results. Contributing to results through project work and special assignments becomes more frequent, reaching beyond conventional boundaries in order to contribute to wider group performance. The broader the responsibility of a Nestl Manager, the more the following specific criteria should be considered, in addition to professional skills, practical experience and result focus: Personal commitment and courage. This includes the capacity and the willingness to take initiatives and risks as well as to maintain composure under pressure. Ability to motivate and to develop people, addressing all those issue that allow others to progress in their work and to develop their capabilities. Curiosity and openmindedness as well as a high level of interest in other cultures and life-styles. This also includes a commitment to continuous learning and improving, as well as to sharing knowledge and ideas Freely with others. A taste for initiative together with the ability to create a climate of innovation and to think outside the box. This implies the right to make a mistake but also the readiness to correct it and to learn from it. Willingness to accept change and the ability to manage it. Adaptability of thought and deed, taking into account the specificity and the complexity of the environment. Credibility as a result of coherent action, leadership and achievement. International experience and understanding of other cultures.

In addition, broad interests, a good general education, responsible behaviors as well as fostering a balanced lifestyle are required to hold high-level management positions.

5.1 GENERAL PRINCIPLE

Nestl is more people, product and brand oriented than systems oriented. While systems are necessary, they should never be an end in themselves. Nestle favors long-term successful business development and endeavors to be a preferred Company for long-term oriented shareholders. However, Nestl does not Lose sight of the necessity to improve short-term results and remains conscious of the need to generate a sound profit each year. Nestl seeks to earn consumers confidence and preference and to follow and anticipate consumer trends, creating and responding to demand for its products. Therefore Nestl is driven by an acute sense of performance, adhering to and favoring the rules of free competition within a clear legal framework. Nestl is conscious of its social responsibility, which is inherent in its long-term orientation. Nestle is as decentralized as possible, within the framework imposed by fundamental policy and strategy decisions requiring increasing flexibility. Operational efficiencies, as well as the group-wide need for alignment and people development, may also set limits to decentralization. Nestl is committed to the concept of continuous improvement of its activities, thus avoiding more dramatic one-time changes as much as possible.

5.2 ORGANISATION PRINCIPLE

Nestl is in favor of and implements pragmatically: Flat and flexible organizations with few levels of management and broad spans of control, including project teams and task forces. Networking and horizontal communication are encouraged with clear accountability of the managers and the hierarchy. Clear levels of responsibility and well-defined objectives are a must. Teamwork and networking do not affect the managers Responsibility: a team has always a responsible leader. A structure, which assures operational speed and personal responsibility, with strong focus on results, reducing bureaucracy as much as possible.

6. MANAGEMENT COMMITEMENT
Members of Nestl Management at all levels are strongly committed to the Company, its development and its culture as expressed in The Nestl Management and Leadership Principles. They practice what they preach and show the example in their daily work. Apart from professional skills and insight, the capacity and

willingness to apply these principles are the main criteria for progressing in the organization, regardless of origin, nationality, religion, race, gender or age.

6.1 NESTLE A HUMAN COMPANY

Nestl is a human Company providing a response to individual human needs throughout the world with Specific concern for the well being of both its consumers and its employees. This is reflected in its attitude and its sense of responsibility towards people. Nestl aims to increase sales and profits but, at the same time, to raise the standard of living everywhere it is active and the quality of life for everyone. Nestl is also convinced that it is the people who form the strength of the Company and that nothing can be achieved without their commitment and their energy, which makes people its most important asset. Involvement of people at all levels starts with appropriate information on the Companys activities and on the specific aspects of their work. Through open communication and active co-operation, everyone is invited to contribute to improvements enhancing Company results and personal development.

6.2 NESTLE VALUES

High commitment to quality products and brands Worried by the high level of infant mortality at that time and relying on scientific research, the Company founder, Henri Nestl, created a revolutionary product, Ferine Lactase Nestl (Nestl Milk Cereal), which has helped to save the lives of many children the world over. Nestls coat of arms, the birds nest, which refers to his name, has become a symbol for our products being a safe harbors for our consumers. Ever since, product safety and quality, Research & Development based Innovation capacity and strong brands are a priority for Nestl. Respect of other cultures and traditions From its inception, Nestl developed its business internationally and became aware of the fact that food products have to be closely linked to local eating and social habits. That is why Nestl from the very start has always shown respect for diverse cultures and traditions. Nestl endeavors to integrate itself as much as possible into the cultures and traditions where it is present, adding also to the local environment its own set of values laid out in this document. Therefore, Nestl embraces cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Furthermore, Nestl believes that its activities can only be of long-term benefit to the Company if they are at the same time beneficial to the local community. In short, global thinking and strategies can best be expressed through local action and commitment.

6.3 NESTLE CULTURE

The Nestl culture Apart from its commitment to safety and quality and its respect for diversity, Nestl is committed to a number of cultural values. These

values come partly from its Swiss roots and have been developed during its history. They are also evolving so as to support the permanent reshaping of the Company. They can be described as follows: _ Commitment to a strong work ethic, integrity, honesty and quality. _ Personal relations based on trust and mutual respect. This implies a sociable attitude towards others, combined with an ability to communicate openly and frankly. _ A personalized and direct way of dealing with each other. This implies a high level of tolerance for other ideas and opinions, as well as a relentless commitment to cooperate proactively with others. _ A more pragmatic than dogmatic approach to business. This implies being realistic and basing decisions on facts. _ Openness and curiosity for dynamic and future trends in technology, changes in consumer habits, new business ideas and opportunities, while maintaining respect for basic human values, attitudes And behaviors. _ Pride in contributing to the reputation and the performance of the Company. This calls especially for nurturing a sense of quality and long-term achievement in the daily work beyond fashion and shortsighted gain. _ Loyalty to and identification with the Company.

6.4 HUMAN RIGHTS

Principles Nestl fully supports the United Nations Global Compacts two guiding principles on human rights. Nestl therefore:

Supports and respects the protection of international human rights within its sphere of influence (Principle 1). And Ensures that its own companies are not complicit in human rights abuses (Principle 2). Nestl aims to provide an example of good human rights practices throughout its business activities and has an interest in encouraging the improvement of social conditions, which are an important factor for sustainable development. Nestl also recognizes that governments are ultimately responsible for the establishment of a legal framework for protecting human rights within their markets. Nestl expects each market to respect and follow the local laws and regulations concerning human rights practices.

6.5 HUMAN RESOURCES AND THE WORKPLACE

Nestle fully supports the United Nations Global Compacts four guiding principles on labor. Nestl therefore upholds:

Freedom of association and the effective recognition of the right to collective bargaining (Principle 3) , The elimination of all forms of forced and compulsory labor (Principle 4), The effective abolition of child labor (Principle 5), The elimination of discrimination in respect of employment occupation (Principle 6). Nestl also respects the local laws and regulations applicable to human resources in each of its markets. Human Resource Policy is also set by the local markets, which must follow local legal requirements. Nestl regards its personnel as its most valuable asset. Involvement at all levels starts with open communication, whether on specific aspects of the business, or about the activities of the Company in general. Suggestions for changes and proposals for improvements of Nestls practices are encouraged. Companys business practices are designed to: Establish staff relations based on trust, integrity and honesty; Maintain respect for basic human values, attitudes and behavior; Respect employees privacy; Comply with applicable data protection regulations and apply Nestl standards in those countries where specific legislation is not yet in place; Promote a sense of integrity among all employees all over the world, and apply a number of common rules while at the same time adapting the expression of these rules to local customs and traditions; Encourage continuous improvement through training, and the improvement of professional skills at all levels in the organi-sation; Offer career opportunities based upon merit, irrespective of color, age, national origin, religion, gender, disability, veteran status, or any other protected class as defined by local law. Professional skills, experience, and the capacity and willing-ness to apply The Nestl Basic Management and Leadership Principles are the main criteria for promotion; Offer competitive salaries and benefits. Working hours, wages and overtime pay comply with applicable local laws and are competitive with those offered by similar companies; Limit overtime to a reasonable level;

 Create a safe and healthy working environment for each employee; Respect the right of employees to form representative organizations and to join or not to join Trade unions, provided this right is freely exercised, and establish a constructive dialogue with these unions; Refrain from any action restricting the employees right to be, or not to be, affiliated to a union; Treat every employee with respect and dignity, and not tolerate any form of mobbing, harassment or abuse; Forbid the use of forced labor or involuntary prison labor.

7. NESTLE PRODUCTS

Kit Kat Kit Kat was first created and launched by Rowntree, and was later produced by Nestl which acquired Rowntree in 1988 (except in the USA, where it is made under license by Hersheys). The brand quickly gained popularity and spread to all corners of the globe, and is now available in over 70 countries in many different varieties. Kit Kat is made up of several layers of creme-filled wafer covered in smooth milk chocolate. Each finger of the traditional four finger bar can be snapped off one at a time. Other variations have been launched over the last 10 years including Kit Kat Chunky. Since the beginning, Kit Kat has been synonymous with having a 'break'. The brand's

trademarked tagline 'Have a break, have a Kit Kat' has come to represent much more than just the physical 'snap' of the wafer fingers!

Cailler Cailler is one of Switzerland's oldest and most traditional brands of chocolate and was created back in 1819. 1898 saw the construction of the very first chocolate factory in Broc. Despite increasingly modern chocolate production methods introduced over the course of the 20th century, special care has always been given to maintaining the high quality of ingredients and retaining the same recipes used by the company's founders. The distinctive milk taste is still a unique feature of Cailler chocolate.

Aero Aero was introduced in the North of England in 1935 as the new chocolate and proved so popular that sales were extended throughout the UK by the end of the same year. Aero was originally going to be called Airways to reflect the vogue for jet travel in the 1930s when it was launched. By 1936, Aero had reached New York. The brand's success comes from its unique bubbly texture. From the first television advertising campaigns screened during the 1950s, the secret bubbly formula has proved the lynchpin for many advertising campaigns. Over the years the popularity of the brand quickly spread across the globe and today Aero is available in many countries including Canada, Australia, South Africa and Japan.

Nescaf Cappuccino Treat yourself to the smooth, creamy flavour and rich, milky froth of Nescaf Cappuccino. Enjoy also our different flavoured cappuccinos such as Vanilla, Hazelnut or Caramel Cappuccino.

Nescafe gold A taste worth savouring . The premium choice from Nescaf for your special cup of coffee every day. We've golden roasted the beans to capture an exquisite rich aroma and smooth coffee taste worth savouring.

Clinutren Clinutren is a range of great-tasting, ready-to-use oral supplements designed with patients' needs in mind. Clinutren offers a variety of product formats soups, desserts, juicy drinks and milky drinks in a range of flavours, which is especially important when long term use of supplements is necessary. Clinutren is designed to help cancer patients gain weight or prevent weight loss. It is ideal for patients with decreased appetite and malnutrition.

Optifast A serious solution for weight loss, Optifast is a comprehensive, medically monitored program that is clinically proven to help people lose weight and keep it off for the long term.

Tomato Ketchup MAGGI offers a wide range of specialty Indian Sauces that are relished for their unique taste. Available in the following delightful variants: Tomato Ketchup, Tomato Sauce, Tomato Chilly, Masala Chilly, Chilly Garlic, Tamarind, Tomato Chat pat, Tomato Pudina and the all-time-favorite MAGGI Hot & Sweet Sauce.

MAGGI Chinese Noodles MAGGI Chinese Noodles makes it so simple to prepare delicious Indian Style Chinese Noodles at home in a jiffy! Offered in two exciting flavors, Veg Chowmein and Lemon Chicken. These packs are for export only.

3. COMPANY PROFILE
Company Profile: Nestle India Limited Ticker: NSLE Exchanges: BOM 2007 Sales: 35,044,000,000 Major Industry: Food & Beverages Sub Industry: Miscellaneous Food Country: INDIA Employees: 3894

Business Description Nestle India Limited. The Company's principal activities are to manufacture and distribute food products. Food products include milk and nutrition, beverages, coffee blends, tea, cream, chocolate, cereals and cooking aids. The Company's plants are located at Moga, Samalkha, Nanjangud, Choladi, Pond, Bicholim and Pantnagar. The products of the Company are exported to Russia, Nepal and Bhutan.

Conflicts of Interest
Nestl requires its management and employees to avoid even the appearance of impropriety in its business dealings on behalf of the Company. Each market in accordance with these principles and local laws and practices defines what constitutes a conflict of interest.

Competition
Nestl supports free enterprise and therefore competes fairly and recognizes other companies equal rights to do so. The Company supports the development of competitions laws to protect this principle. In particular: Nestl sets its commercial policy independently and does not fix prices in agreement or collusion with competitors. Nestl does not allocate customers, territories or product markets in agreement or collusion with competitors; Nestl deals fairly with its customers and suppliers, in accordance with competition laws; Nestl will look towards mergers and acquisitions as a means to improve its effectiveness, not to restrict competition; Nestls trade payments are based on customer efficiencies and services provided.

7.1 NESTLE INDIA PROCESSING UNIT

Moga (Punjab)1961

Choladi(Tamilnadu)1967

Nanjangud(Karnataka)1969

Samalkha(Haryana)1993

Ponda(goa)1995

brcholim(goa)1997

Pantnagar(uttaranchal)06

Nestle India head office, gurgaon

7.2 FUTURE PLAN

Nestle India is planning to bring in products from its international portfolio and modifying it to suit the Indian taste buds. It has also undertaken capacity expansion at its existing manufacturing facilities in Moga, Punjab and Samalkha, Haryana. It has plans to take chilled dairy products to cities other than Delhi, Mumbai, Kolkata, Bangalore, Chennai and Hyderabad. Nestle India has 30% of the chilled dairy market in the six cities and is planning to take it to 40% within a year. It has plans to come up with more yogurt-based products in a years time. Nestle is also planning a buyout in India. The company has restructured its business with an increased focus on its dairy and nutrition business that yields 48% of its sales. The company was recently assigned AAA rating with Stable Outlook indicating highest safety by CRISIL for Long Term Borrowing Program of Rs 500 million. The company currently has negligible outstanding debt and has no immediate borrowal plans.

7.3 RECENT DEVELOPEMENT

24-MAR-08 Nestle India has added fresh milestones by launching two new products - Kit Kat Chunky and Kit Kat Mini - under the companys No.1 global confectionery brand. 04-SEP-07 Nestle, the parent company of Nestle India acquired 61.66% stake in Swiss water firm Henniez for an estimated CHF 155 million (Swiss Francs). An agreement has been entered into between Nestle and the Rouge family, the majority stakeholder in Henniez for CHF 3,000 a share. Nestle, the worlds largest food company intends to make a public offer for the rest of the shares at CHF 5,303 a share. Henniez, which had sales of CHF 152 million in 2006, employs over 270 people. The company is well known for the quality of its products and its management. After the deal, Nestle will command approximately 25% of the Swiss market share, which is above the European average and enjoys a growth rate of 1% to 2% per year. Henniez will strengthen Nestls existing activities in Switzerland. It brings in a modern industrial capacity adapted to evolving consumer needs, a strong distribution network and prestigious local brands which ideally complement Nestls existing portfolio of international brands. 27-JUL-07 The company has launched Nesvita in India, to leverage on the growing health awareness.

Districts & Rural Growth

CONTENT

1. INTRODUCTION
2. HISTORY OF NESTLE INDIA 3. COMPANY PROFILE 4. MARKETING AND COMMUNICATION 4.1 NESTLE CORPORATE BUSINESS PRINCIPLES 4.2 PRODUCT&CONSUMER 5. THE NESTLE LEADERSHIP:ADDING VALUE 5.1 GENERAL PRINCIPLE 5.2 ORGANISATION PRINCIPLE 6. MANAGEMENT COMMITEMENT 6.1 NESTLE A HUMAN COMPANY 6.2 NESTLE VALUE 6.3 NESTLE CULTURE 6.4 HUMAN RIGHTS 6.5 HUMAN RESOURCES & THE WORKPLACE 7. NESTLE PRODUCT 7.1 NESTLE INDIA PROCESSING UNIT 7.2 FUTURE PLAN 7.3 RECENT DEVELOPEMENT 8. CONCLUSION

8. CONCLUSION
Riding on the growth of its power brands, Nestle has extended its dominance in food business in India as well. However, a number of its brands require a repositioning. The present exercise is an attempt to analyses the position of the different brand offered by Nestle India. The aim is to assess the positioning decision of Nestle as far as its different brand are concerned while also looking for prospects that avail the India market.

Growth