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  1. 1. The story of Nestle:From nutrition to wellness;Food is a core element in our daily lives. Not only does it enable us tosurvive, but appropriate amounts and quality also help to ensure abetter standard of living by contributing to our health and wellness.Consumer need and expectations associated with a particular foodproduct are not fixed, but change with the time and according togeographic region, culture and the various stages of life. Ever since itsfoundation in 1866, Nestle goals have been to keep in step with thisconstant process of change. It reacts to new consumer requirementswith innovative and continually renovated products and implementsnew scientific finding in tasty foods.High infant mortality rates, and the lack of suitable replacement foodsfor babies for no access to breast milk, were the motivation behind theHenri Nestlé’s invention of Fraine Lactee. He was also be able to offerhis first product-as an easily digestible and ready-made food-toconvalescent and elderly people, thus laying the foundations oftoday’s concept of nutrition.At the same time, the lack of our fresh milk in European citiesmotivated the American Page brother to found Europe first condensedmilk factory in Switzerland in 1866. the two companies Nestle and theAnglo-Swiss Condensed Milk Co. merged in 1905, uniting not only theirworldwide distribution and production network, but also their milk-processing expertise. The unique network of research anddevelopment centre, built up over number of decade, facilitated thedevelopment of wide range of specific milk and dietary products, frompreparations enriched with vitamins in the 1930s through today’sprobiotic food.Backed up by the best possible product quality and food safetystandards, nestle promotes consumer health and wellbeing while atthe same time adhering to regional traditions with regards to taste andpleasure.When it comes to taste and pleasure, many consumers think first andforemost of the range of chocolate products that has belonged toNestle since 1905 and was expanded significantly in 1929 with thetakeover of the Swiss chocolate makers Peter, cailler and kohler, andin 1988 with the acquisition of row tree (kit Kat, smarties). Originallychocolate was enjoyed in liquid form, but was primarily a means ofhealing illnesses and providing strength. Due to its high nutritionalvalue, it has also been used for a long time as a popular snack for allkids of leisure activities. The expansion of our activities into the area
  2. 2. of Performance nutrition with the takeover of Power Bar in 2000follows this trend.Julius Maggo can undoubtedly be viewed as a pioneer in the creationof convenience foods, offered worker’s families a protein-rich,affordable and quickly prepared food in the form of his vegetable soupin 1884. Following the acquisition of Maggi in 1947, pre-served andfrozen foods and Italian cuisine supplemented Nestlé’s product rangein this area. With the expansion of the Food Services division and thetakeover of chef America in 2002. Nestle acknowledged the growingtrend for eating out-of-home.In additional with product lines with specific nutritional characteristics(less salts, fewer claries, etc.) are aimed at helping young and elderlyhealth conscious consumers to achieve their individual nutritionalgoals. Nestle home care provides outpatients In certain countrieswith specific high nutrition faces and nutrition related services.Nestlé’s development from a straight forward food manufacturer to awellness company is also highlighted by changes in the beveragesdivision. In the last decade in particular, Nestle has expanded itstraditionally broad and successful range of nutritional and flavoreddrinks (Milo 1934, Nescafe 1938, Nestea 1944, Nesquik 1948,Nespresso 1986) with both sparkling and non-sparkling mineral water(Vittel 1969, Perrier 1992, Nestlé’s Pure Life 1998, Nestlé’s Aquarel2000).Fraine Lactee for infants and convalescent and elderly persons.Pets contribute to the wllbeing of many people. With the acquisition ofCarnation in 1985, we entered the pet food business, becoming a jointventure leader via merger with Spillers (1989) and Purina (2001).Since 1974, Nestle has also helps an indirect participation in L’Oreal.Following the 1989 joint venture, Galderma, in dermatology, the 2002joint venture, “Laboratories Inneov”, combined the competencies ofNestle In nutrition research with those of L’Oreal in cosmetics. Thiscreates access to a further dimension of nutrition, that of promotionbeauty and wellness via specific nutritional supplements.The success of the 1977 move into the pharmaceuticals industry withthe takeover of Alcon was highlighted with the partial IPO (around25%) in 2002.With the objectives of ensuring optimal nutrition Nestle take into theaccount consumer’s increasing expectations with regards to food, italso makes the contribution to good health and illness prevention thatextend above and beyond traditional concerns of sustenance, pleasureand convenience.
  3. 3. With over a hundred years of experience, we know that the trust ofour consumers is based on the quality and safety of our products. Wealso know that we continue to deserve this trust.About Nestle Milkpak Ltd.Nestle Milkpak Ltd is a food processing company, which is registeredon the Karachi and Lahore stock exchanges.Headquarter in Lahore, the company operates five production facilities.Two of its factories in Sheikhupura and Kabirwala are multi productfactories, while another one at Karachi is ready for production. Onefactory in Islamabad and two in Karachi produce bottled water.Through is effective marketing and a vast sales and distributionnetwork throughout the country, it ensures that its products are madeavailable to consumers whenever, wherever and however.Nestle Milkpak is a subsidiary of Nestle S.A. a company of Swiss originheadquartered in Vevey, Switzerland.Nestle has the unique ability to provide a complete range of foodproducts, services and well-known brands to meet the needs ofconsumers around the world. It is not faceless consumers, but ahuman company providing a response to individuals needs. It respectsthe culture of the countries it operates in and recognized the need forquality of life of their people.In line with Nestlé’s global philosophy, Nestle Milkpak is proud of itscommitment to excellence in product safety and quality and toproviding value and services to its consumers. On the social front itacts very responsibly when it comes to environmentally soundbusiness practices and corporate social responsibility.Nestle Milkpak operates in many ways but people, products andbrands are the main flag bearers of the Company’s image.Nestle has been collecting milk worldwide for the past 100 years,which is used for processing as well as producing milk-basedproducts. To promote sustainable milk business by the formers, NestleHead Office in Switzerland and extend assistance through a variety ofprograms under taken by the country operations, whish focus ontechnical improvement and better dairy practices.For Nestle Milkpak, milk is the core raw material for the production ofUHT and powder milk and other milk-based products. Ever since thecompany commenced operations in Pakistan, its prime concerns havebeen to improve the quality and volume of its raw milk. Driven by itscommitment to the quality of its products and given the limitations ofthe quality land quantity of raw milk available from outside sources,
  4. 4. the company opted for self-collection. Consequently, a self-collectionprogram was initiated in 1988.Despite difficult odds, the company has succeeded in creating anextensive milk collection network that almost eliminated its reliance ofthird party suppliers. It now collect very high quality directly fromover130,000 farmers on a daily bases an area of over 70,000 Sq. Km,in Punjab and pays nearly four billion rupees to farmers towards milkpurchases.The basis unit of Nestle Milkpak milk collection system is the villagemilk collection centre (VMC). Farmers brings their milk to these 1000VMCs morning and evening from where it is transported to sub- formechanical chilling and then to main centre from where it istransported to the factories.Nestle Milkpak achieved its milk collection objectives by entering into astrategic and mutually beneficial partnership with the farmers. Whichhas focuses on increased milk production and livestock development?Towards making this partnership a success. Nestle Milkpak establishedan Extension Services, staffing it with veterinary doctors, which hasrendered very valuable services to farmers. It provides them anadvisory service on ways to improve milk quality and output, createawareness about good animal husbandry pact ices, provide freediagnosis and advises treatment of their livestock and undertakesvaccination at cost. It also provides them high yield seeds andmolasses at cost. Besides, it encourages and supports progressivefarmers by way of technical assistance and form designs.To help in breed improvement, the company assists in the operationsof an NGO that undertakes artificial insemination and training ofvillage inseminators.Nestle highly values this relationship with farmers as this is a win-winsituation for both. On the one hand, it assures a regular income forfarmers and on the other hand it enables the company to collect betterquality milk.ProductionSheikhupura FactoryThis production facility under the name of Milkpak ltd. At Sheikhupuracommenced operations in 1981 as a producer of UHT milk. By 1988 ithad expanded its operation to produce butter, cream, desi ghee allunder the brand name of Milkpak and fruit drinks under the productname FROST.
  5. 5. After Nestle S.A Switzerland took a major participation in Milkpak ltd.In 1988, the Milkpak factory at Sheikhupura became a part of the jointventure under the name of Nestle Milkpak ltd.Soon afterwards in 1990 the milk powder plant was established toproduce powder milk (NIDO). This was followed in subsequent yearsby the installation of production lines of infant cereals ( CERELAC)infant formulae (LACTOGENS), tea withener (EVERYDAY), Chocolatedrink powder ( MILO) growing milk ( NESLAC), ready to drinkchocolate drink, (MILO RTD), Sugar confectionery ( POLO MINT), FruitDrink (FROST), Juices (ORANGE, APPLE, PINE APPLE, MANGO), coffee(NESCAFE), Flexible confectionery line (TOFFO and SOOTHERS), Bottlewater ( NESTLE PURE LIFE), Plain and fruit yogurt. Specialized infantformulae (NAN 1 & 2).During these years a variety of variants of different products were alsointroduce as a part of expansion of product portfolio.To meet the increasing demand of milk products in 2004 new milktanker reception bay was installed. Additional milk processing andfilling equipments was installed including a TAB22 Filter, TWA 125 andTWA 200 Filters. This is the most modern, efficient and high speedequipment available in the dairy industry. To support these additionalinvestments were made in the industrial services e.g. ice water andcompressed air.To meet the needs of safe storage for the ever expanding productrange their increasing volumes, National Distribution Center (NDC)was constructed in 2000. Spread over 6614 square meters, it canstore up to 8300 pallets, approximately 8000 tons.Kabirwala Factory.Nestle Milkpak acquired the factory in 1990 as a subsidiary andsubsequent to its merger with Nestle Milkpak in April 1997 it became afully owned unit of Nestle Milkpak Ltd.A magi Noodles plant was installed in 1992, followed by a milk powderplant for NIDO and Gloria whose capacity was subsequently increasedseveral Times. Then came a new butter line production bulk andcultured butter. A dry mix line was installed for tea whitener powder(EVERYDAY) and the milk powder plant was modified to produce NIDOenriched with vitamins and minerals. The Desi Ghee plant wasrelocated from Sheikhupura factory and its capacity was doubled.
  6. 6. A National Distribution Center and an Occupational Health Center wereestablished and a sew incinerator plant was acommissioned with ascrap yard for proper water disposal.Quality Assurance. Nestle commitments to product quality remains the corners stone ofits businesses philosophy. In Pakistan too the company has all alongbeen committed to achieving the highest quality of its products. As apart of this effort, in 1993 the company embarked upon “Farm totable” quality concept. The guarantee about the quality of NestleProducts up to the time of consumption by the consumer. We expectthis concept to result in our product becoming the product of choice forour consumers.CORPORATE SOCIAL RESPONSIBILITIES:Nestle Milk Pak has put in a place well-defined policy on Corporate SocialResponsibility that covers Social action Programs, Promotion of Sports and Culture,Cause Related Marketing and Environment. The policy is aimed at ensuring that theCompany meets its obligation to the society.SOCIAL ACTION PROGRAMS:The social action programs focused on child and mother issues, Donation to needycommunities, rural support programs and educational support for underprivilegedstudents. 1. CHILD AND MOTHER ISSUES The company arranges milk programs for undernourished and sick children and mothers through several NGO’s and charitable organization. It also supports such organization such as APWA to participate in international seminars on child issues. 2. DONATION: The company assist through donations such hospitals and organizations that provideservices to the poor and respond to distress calls by the govt and NGS’s, for assistance tovictims of floods, earthquakes , drought and other natural climatic conditions . 3. RURAL SUPPORT PROGRAMS. To help alleviate the suffering of rural populations who do not have easy access topotable water, the company has initiated a tube well and hand pumping installationscheme in selected areas, first tube well was completed in 2002 in Chak 343 WB, avillaige of about 3000 inhabitant in tehsil Dunyapur, disst khaniwal, for the inhabitanceof desert areas of cholistan, a program of installation 115 hand pumps comes inunderway.The milk collection and agri-services Department of the company provides free andextensive advisory and support service to mil farmers by educating and training them in
  7. 7. good animal husbandry practices helping in vaccination and treatment of their milchanimals facilitating purchases of feed supplements and fodder seeds and helping in breedimprovement .This translates into increased milk production and consequently, a betterincome for the farmers. 4. EDUCATINAL SUPPORT UNDER PRIVILEGED STUDENTS. The company donates computers to school for disadvantage children run byNGOs and charitable organizations to enable these children from modern technology.The company donates to support the spread of education in the rural areas, it undertakesrefurbishment, program of govt, operated to primary and middle schools, in partnershipwith NGO’s that specialize in education, the company has recently, embarked on theprogram of a school adoption to improve educational facilities and enhance the quality ofeducation, these measures are likely to result in the increase of school attendance byabout 50%. 5. SPORTS AND CULTURE:- The company regularly sponsors sports and cultural events. Such as theinternational polo tournament and SAF games n the recent past. 6. ENVIROMENT:- For Nestle, respect and responsibility for the environment are a part of itsborder commitment to sustainable development. Sustainable development requires andintegrated approach to policy and decision making, in which long term economic growthenvironmental protection and social achievements are not incompatible but arecomplimentary and mutually dependant.Nestle record of environmental activities can be traced back over several decades. Withmany effective measures put in place. The policy was updated in 1999, confirming andstrengthening the company’s commitment to the environmentally sound businesses.In line with Nestle global commitment, Nestle milk pack in Pakistan is equally dedicatedtoday its role in helping to protect environment, this is done in number of ways. • Compliance with local laws. The company fully complies environmental act/regulation 1997. • Raw Material: Agricultural raw materials provides the basis to the companies, finishproduct and therefore are center to it’s operations.. Although not involved in raw materialproduction, the company supports sustainable agricultural and dairy forming practices,including, environmental protection. • Manufacturing Processes: It is a very important part of the supply chain. In our factories, theobjectives are to maximize the production of goods. At the same time, minimizing ofconsumption of resources and reduction in wastes and emission. The factories areequipped with complete testing and monitoring facilities for waste and air emissionenable them to stringently monitor the gaseous environment and ensure that these are inaccordance with the environmental standards (NECS).Additional measures are:  Reduction of gas emission: To eliminate air pollution, the factories have switched over from the use of heavy fuel oil to natural gas, as gas burns cleaner. This has drastically reduced carbon dioxide into atmosphere to well below the legal limits. At
  8. 8. the same time a strict maintenance program of fuel consuming equipment followed. Waste Water Treatment: To prevent wastewater from polluting the environment factories in Sheikhupura and Kabirwala operate an elaborate water treatment system. Water Generation: Steps are continuously taken to reduce raw material water consumption for cleaning and other operations. This positively impacts the efficiency of our wastewater treatment plant, of which the SCD & COD is monitored Packaging: There has been an increased focus on packaging and its environment impact on packaging. Nestle supports an integrated approach that favors source reduction, reuse, recycling and energy recovery to minimize the impact of packaging on the environment. To achieve reduction of packaging material without jeopardizing the safety and quality of the products, packaging solutions are regularly developed leading to lowest possible weight & volume while at the same time allowing its recycling. Care is also taken to avoid the use of substances that may adversely impact the environment during packaging production and disposal. The engineering & production departments are encouraged to improve the performance of packaging machines and supplies are challenged to improve the quality of material. Packaging Waste Recovery: No content with packaging and recycling the company operates a collection, separation and recovery system of used packaging. Through a solid waste management program, solid waste is collected and segregated at source and then reused, recycled or disposed off in an environmentally friendly way. Incinerators at Sheikhupura and Kabirwala factories are used to incinerate material that can’t be recycled and dumped. Run on natural gas these incinerators cause no pollution and convert material waste into ash that is safer and easier to dispose off. Waste of Tetra paper that was initially incinerated at site a waste handling company. Environmental Management: Factory managers assisted by environmental committees, Management environmental issues and their performance is regularly audited by the Corporation Technical Management. Environmental impact assessment is done in advance for every new project and mitigation measures are adopted to minimize adverse impacts on environment. Training: Training to create awareness about environmentally safe practices forms an important part of the company’s environment management system. Accordingly all employees undergo environmental training through common issue training sessions followed by an Environment Week once a year.