Nestle India

Company Presentation by
Ridhi Choudhary
Maulik Pandya
Himanshu Dhadnekar

Shri Chimanbhai Patel Institute of Management and Research

Presentation Highlights…
Introduction
Core Business
HR Perspective
Marketing Strategy
Financial Performance
Corporate Social Responsibilities
Conclusion
Recommendation

Shri Chimanbhai Patel Institute of Management and Research

Introduction…
Nestlé India is a subsidiary of  Nestle S.A. of
Switzerland. With seven factories and a large number
of co-packers, Nestlé 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'.

Shri Chimanbhai Patel Institute of Management and Research

Introduction…
Nestlé’s relationship with India dates back to
1912, when it began trading as The Nestlé
Anglo-Swiss Condensed Milk Company (Export)
Limited, importing and selling finished products
in the Indian market. 
After India’s independence in 1947, the
economic policies of the Indian Government
emphazised the need for local production. Nestlé
responded to India’s aspirations by forming a
company in India and set up its first factory in
1961 at Moga, Punjab, where the Government
wanted Nestlé to develop the milk economy.

Shri Chimanbhai Patel Institute of Management and Research

Introduction…
Nestle’s Presence in India

Shri Chimanbhai Patel Institute of Management and Research

Core Business…
Beverages
Drink to an active life with Nestlé Beverages.
Chocolates & Confectionery
Delighting the senses with a range of tastes
and textures.
Milk Products and Nutrition
From shelf-stable solution to chilled dairy.
Prepared Dishes & Cooking Aids
Preparing well balanced meals is a snap with
Nestlé.

Shri Chimanbhai Patel Institute of Management and Research

HR Perspective…
HR Philosophy of Nestle suggests that for
them, their people are the key drivers for
their success.
Nestlé India provides its employees a
dynamic professional environment bound
by one spirit,'The Nestlé Spirit' and that
makes Nestlé India a great place to work.
They trust their people and believe in
giving early responsibilities and encourage
them to actively contribute to the long term
sustainable growth of the business.

Shri Chimanbhai Patel Institute of Management and Research

Marketing Strategy…
Nestle targets different segments of
customers who can remain part of their
family for longer term…
Beverages
 Service going, business persons and housewives
Chocolates & Confectionery
 Children, Stressed-out executives and Corporates
Milk Products and Nutrition
 Chefs and Homemakers
Prepared Dishes & Cooking Aids
 Kids and Working Women

Shri Chimanbhai Patel Institute of Management and Research

Marketing Strategy…
Advertisements
Awareness
Reminder Advertising
Promotions
Contests and Games, Sweepstakes, Product
giveaways and discounts. 
Awareness Campaigns
Maggi Fun Spot
Coffee Corner near Education Institute
Nescafe Restaurants

Shri Chimanbhai Patel Institute of Management and Research

Financial Performance…

The above data depicts that there is continuous growth in the sales and profit
with minor variations.
The growth is sustainable as there is not a major variation in Sales and
Operating Profit.
Sales, Operating Profit, Gross Profit and EPS has always been in line with
market expectations, so the share price of the company isn’t very volatile
even though share market is quite volatile nowadays.
Closing Price on BSE as on September 28, 2011 : Rs. 4233

Shri Chimanbhai Patel Institute of Management and Research

Financial Results…
Even though the global
market was under turmoil
in 2008, yet we can
witness steady returns to
investor in form of regular
and sustainable dividends.
The company’s history
clearly reflects its
philosophy of giving good
returns and meeting
stakeholders expectations
by performing steadily
and promisingly.

Shri Chimanbhai Patel Institute of Management and Research

Corporate Social
Responsibilities
Progress in Moga required the introduction of Nestlé’s
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.
Nestlé 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.

Shri Chimanbhai Patel Institute of Management and Research

Conclusion…
The very basics of being in business, whom to
target is very much clear in the philosophy of
Nestle. They target financially sound people, who
have got spending power or lack of time.
This philosophy has created a huge market for
Nestle and have attracted and retained billions of
families, who regularly consumes Nestle Products.
Apart from lucrative market segment, they have
hired and are hiring people with good educational
background and are inculcating leadership
abilities in them, so that their business remains
attractive and growing for more longer period.

Shri Chimanbhai Patel Institute of Management and Research

Conclusion…
Their financial results speaks volume for their work,
ability and performance. They have delivered promising
results and have given guidelines that are always
achievable for them yet huge for competitors.
They don’t compete with their competitors but compete
with themselves only to bring more better product and
to target more lucrative market.
Even in economy slowdown, they delivered consistent
results without being affected by global turmoil and
always remained “wealth creators” for the stakeholders.
Last but not the least, they have always played their
role towards society and contributed by educating and
employing people at large.

Shri Chimanbhai Patel Institute of Management and Research

Recommendations…
They have achieved more than anybody
else in their field and have proved them
again and again that they are the best, but
still few things that we as a student of
Management would recommend are….
Apart from their current product portfolio, they should
identify regional products of the country, should
manufacture and market them abroad, so that flavor
and fragrance of India can be taken to the world….
Free home deliveries, order on sms or web, online
order trekking are the few innovations that they can
think of…

Shri Chimanbhai Patel Institute of Management and Research

 Thank You

Shri Chimanbhai Patel Institute of Management and Research