Nestle Economic Envirnment

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Nestle Economic Envirnment

  1. 1. PROJECT ONBUSINESS ENVIORNMENT OF NESTLE<br />SUBMITTED TO :<br />GEETANJALI KAPOOR MA’AM<br />
  2. 2. GROUP MEMBERS<br />PRADNYA BHALERAO C-03<br />SWAPNIL GALGALIKAR C-13<br />RAKESH LALWANI C-19<br />CHAITALI SWAMI C-36<br />PRATIKSHA RANE C-42<br />
  3. 3.
  4. 4. The Nestlé logo was launched by Henri Nestlé in 1868 on the basis of the meaning of his name in German, i.e. little nest, and of his family emblem<br />
  5. 5. HISTORY<br />Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland<br />Nestlé India is a subsidiary of Nestlé S.A. of Switzerland<br />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. <br />
  6. 6. HISTORY<br />After India’s independence in 1947, economic policies of the Indian Government emphazised the need for local production. <br />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. <br />
  7. 7. BOARD OF DIRECTORS<br />
  8. 8. EXPANSION IN INDIA<br />Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial investments established that it was here to stay. <br />In 1967, Nestlé set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea.<br />
  9. 9. EXPANSION IN INDIA<br />The Nanjangud factory (Karnataka), became operational in 1989,<br /> The Samalkha factory (Haryana), in 1993 <br />In 1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. <br />It commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand. <br />
  10. 10. They want to be dedicated towards continuous improvement in the food safety and quality of every product they make and in every activity in which they perform<br />
  11. 11. FEATURES<br />Nestlé India is a vibrant Company that provides consumers in India with products of global standards<br />Acknowledged as India&apos;s &apos;Most Respected Companies&apos; <br />&apos;Top Wealth Creators of India&apos;<br />
  12. 12. Manufactures products of truly international quality under internationally famous brand names <br />
  13. 13. In recent years they introduced products of daily consumption <br />NESTLÉ Milk<br />NESTLÉ SLIM Milk<br />NESTLÉ Fresh &apos;n&apos; Natural Dahi <br />NESTLÉ Jeera Raita.<br />
  14. 14. EXPORTS<br />Milk Products<br />Beverages<br />Prepared dishes and cooking aids<br />Chocolates and confectionery<br />
  15. 15.
  16. 16. CAPITAL<br />Owned Capital of <br /> Rs. 418.42 crores including reserves of Rs. 322,00,84,000<br />Borrowed Capital of <br /> Rs. 2.87 crores<br />
  17. 17. ASSETS<br />Fixed Assets of Rs. 675.50crores<br />CURRENT ASSETS<br />Negative Current Assets but high Fixed Assets backing<br />Interest free financing<br />
  18. 18. INVESTMENTS<br />Investment in Government securities i.e. Treasury Bills<br />It has also invested in various Mutual Funds<br />
  19. 19. Financial Results and Operations<br /> (Rs. in Million)<br /> 2007 2006<br />-Gross Revenue 35,298 28,367<br />-Earning before Interest<br /> and Tax excluding<br /> Other Income (EBIT) 6,215 4,752<br />-Interest 8 4<br />-Impairment Loss on Fixed<br /> Assets (Net) 12 4<br />-Additional Employee Cost 753 -<br />-Provision for Contingencies<br /> (Net) (590) 145<br />-Provision for Tax 2,148 1,654<br />-Net Profit 4,138 3,151<br />-Profit Brought Forward 105 72<br />-Balance Available for<br /> Appropriation 4,243 3,223<br />-Interim Dividends 2,941 2,458<br />-Final Dividend Proposed 241 -<br />-Corporate Dividend Tax 522 345<br />-Transfer to General Reserve 414 315<br />-Surplus carried in Profit<br /> and Loss Account 125 105<br />
  20. 20. At Glance<br />NET SALES : Rs.3504.35 Crores. <br /> [Increases by Rs.688.29 Cr. UP 24.4%] <br />NET PROFIT : Rs.413.81 Crores. [Increases by Rs.98.71 Cr. UP 31.3%]<br />Highest Ever Full Year Dividend of 330 %<br />Income tax paid Rs. 214,80,16,000<br />
  21. 21. Taxation Policy<br />In India Corporates are taxed at 30 % of income as per income tax act <br />Corporates are subject to 10% surcharge if the income exceeds 1crore<br />Excise Duty<br />Various plants in India in variousstates<br /> -basic duty 8%<br />
  22. 22. PROMOTION<br />Availability of the vending machine network.<br />New consumption opportunities for chocolates were identified and developed in areas like<br /> railway platforms<br />college canteen<br />major events.<br /> ‘Café Nescafe’ and ‘Coffee Corners’<br /> across metros and mini-metros.<br />
  23. 23.
  24. 24.
  25. 25.
  26. 26.
  27. 27.
  28. 28. DISTRIBUTION<br />Low sales growth in chocolate and other products<br />Added 15 regional sales offices in its sales and distribution structure<br />
  29. 29. SUPPLY CHAIN<br />Nestle India has continuously focused on improving the supply chain to<br /><ul><li> reduce wastage
  30. 30. improve efficiencies and
  31. 31. provide consumers with fresh stocks all the time.</li></li></ul><li>COMPETITORS<br />
  32. 32. ADVERTISING<br />CHANGE THEIR ADVERTISEMENTS ACCORDING TO THEIR PRODUCTS<br />
  33. 33. BRAND AMBASSADOR<br />
  34. 34. HR POLICIES<br />
  35. 35. A shared Responsibility<br />Each employee has a distinct responsibility in dealing with people be it as a leader of a team or as a peer<br />Partnership is the key for efficiency in people management<br />
  36. 36. Strong interpersonal relationships<br />A prerequisite for dealing with <br /> people is respect and trust<br />Dealing with People<br />
  37. 37. Best personal attitudes and professional skills<br />Decision is not left with consultants or experts<br />Joining Nestlé<br />
  38. 38. Commitment towards The Corporate Business Principles<br />Suggestions from employees are welcome <br />Employment at Nestlé<br />
  39. 39. Nestlé believes that the employee’s private<br /> and professional life should have a good balance<br /> Nestlé appreciates employees taking active participation in life of the community <br />Work/Life Balance<br />
  40. 40. Remuneration<br />Favors fair remuneration structures offering an overall competitive compensation package<br />Implement flat & flexible organizational structures<br />
  41. 41. Professional Development<br />Learning among employees is highly encouraged<br />
  42. 42. Industrial Relations<br />Shares good report with unions and other representative associations<br />Wishes to sustain the long-term development of the Company, both to the benefit of the employees and of the Company<br />
  43. 43. HR Organization<br />Nestlé is highly people and product centric<br />Believes humans as an asset<br />
  44. 44. CORPORATE SOCIAL RESPONSIBILITY<br />
  45. 45. Creating Shared Value<br />“Nestlé&apos;s business is part of social fabric of the community in which it operates. Our business objective is create value that can be sustain over the long term for company and society, and create opportunity and prosperity as partner in growth.”<br />
  46. 46. CORPORATE SOCIAL RESPONSIBILITY<br />Reduction in emission of GHG by 16%<br />Reduction in overall water consumption by 28%<br />Overall production increased by 76%<br />Invested over 100 million in environment-related industrial improvements<br />Free technical assistance to over 600,000 farmers<br />
  47. 47. Green house gases emission<br />
  48. 48. Energy consumption<br />
  49. 49. CORPORATE SOCIAL RESPONSIBILITY<br />Started school for poor children in villages<br />Developing dairy farmers<br />
  50. 50. Empowering village women<br /><ul><li> Village covered – 550
  51. 51. Women covered – 30,000</li></ul>CORPORATE SOCIAL RESPONSIBILITY<br />
  52. 52. Opportunity<br />Potential for expansion in the smaller towns and other geographies<br />Development of modern retail formats<br />Potential for growth through increased penetration<br />Growing trend for ‘Out of Home’ consumption<br />Leverage Nestlé Technology to develop more products that provide Nutrition<br />Growing per capita income<br />
  53. 53. Threat<br />Rising prices of raw materials and fuels.<br />Change in fiscal benefits/laws.<br />People attraction and retention.<br />Competitive environment with diverse<br />
  54. 54. AWARDS & RECOGNITIONS<br />In 2007 – Nestlé was voted among the Top 50 Future Shaping business company by the St. Louis RCGA magazine.<br />In 2008 - “Best Places to Work” in St. Louis by the St. Louis Business Journal based on their unique culture<br />
  55. 55. AWARDS & RECOGNITIONS<br />In 2008 – &quot;Heroes of the Planet Award&quot; for their Sustainable Operations<br />In August 2008 – Nestle’s positive work environment and unique culture where associates are welcometo bring their pets to work were highlighted in AAIM&apos;s Connection Magazine.<br />Nestlé USA was recognized by Business Week among their list of Best Places to Launch a Career<br />In 2008, Nestlé was ranked #1 in the consumer food products industry in Fortune Magazine&apos;s annual survey of America&apos;s Most Admired Companies<br />In 2007, Nestlé was named among &quot;World&apos;s Most Admired Companies&quot; by Fortune Magazine<br />
  56. 56. CONCLUSION<br />
  57. 57. WIBLOGRAPHY<br />www.nestleindia.com<br />

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