Executive Summary:
Nestle is undoubtedly one of the most proficient food leading companies in not only
Pakistan but all over the world. The employees at Nestle have finagled to retain their standards to
the most high-pitched level possible in the market. They make sure of the fact that the product of
Nestle is definitely the BEST TO USE. Nestle has an assortment of products to offer and they
have best to offer their product.
We have assigned the project by Sir to identify the company position. For this project
our main concern was to study the financial position or performance of the Nestle. We study the
company financial position and performance through HORIZONTAL ANALYSIS,
VERTICAL ANALYSIS, TREND ANALYSIS, RATIO AND RATIO ANALYSIS.
Vision
The Nestle global vision is to be the leading health, wellness, and Nutrition Company in the
world.
Mission Statement:
Since Nestle came into being, health, nutrition and wellness have been central to the Nestle
vision. 140 years after Henri Nestle, nutrition is, more than ever, the key to the company's future.
. Consumers are at the heart of all that Nestle does. Their philosophy is summed up in four
words:
Good Food, Good life.
In their quest to become the world's leading health, nutrition and wellness company, they do
everything they can to help people live more fulfilling lives.
Henri Nestle chose his own coat of arms to represent the company's philosophy: a bird's nest,
with a mother feeding her young. The image represents their core values: care, family values,
nutrition, and healthy growth, safety and comfort. It is a guarantee of quality and a commitment
to their responsibilities as a food company and experts in nutrition. Over the years they have
reaffirmed their commitment to wellness. They help their consumers to live longer, healthier and
more productive lives.
Good Ingredients:
Three vital ingredients lie at the heart of Nestle and come together in their brands: their people,
their research and development, and their commitment to quality. The 250,000 dedicated people
who make up the Nestle family are the source of strength and energy. Realizing this, Nestle offer
them constant professional development. Nestle is one of the largest investors in food
technology. R&D is the cornerstone of the Nestle guarantee of quality. They consider quality in
three key dimensions: health, sensory pleasure, and social applicability. Thus they try to provide
nutritious tasty meals that offer value and are culturally relevant.
Strategies:
Nestle Pakistan subscribes fully to this vision. In particular, they envision to: Lead a dynamic
motivated and professional workforce - proud of its heritage and bullish about the future. Meet
the nutritional needs of consumers of all age groups - from infancy to old age, through an
innovative portfolio of branded food and beverage products of the highest quality. Deliver
shareholder value through profitable long-term growth, while continuing to play a significant and
responsible role in the social, economic and environmental sectors of the country. Nestle have
profitable and diversified high quality food and beverage product portfolio Nestle brands are the
preferred choice in their categories. Consumer insight drives all aspects of their marketing and
communication efforts. Their company is seen as the No. 1 career destination for talented,
motivated and ambitious professionals. Their result-oriented organizational structure ensures
effective communication and empowered self-management
Background
Nestle is the world's leading nutrition, health and wellness company today and was founded in
1866 by Henri Nestlé. It has employed around 250,000people and has factories or operations in
almost every country in the world. Being the world's leading bottled water company, is based on
a firm economic model: strong brands, global presence, innovation capacity, environmental
stewardship and passionate people
HISTORY Globally
1860-1905
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother's milk or
any of the usual substitutes. People quickly recognized the value of the new product, after
Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold
in much of Europe. Henri Nestlé endowed his company with the symbol derived from his name.
His family coat of arms, the nest with a mother bird protecting her young, became the
Company's logo and a symbol of the Company's care and attitude to life-long nutrition. The
Nestlé nest represents the nourishment, security and sense of family that are so essential to life.
1905-1938
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the
company was operating factories in the United States, Britain, Germany and Spain. World War I
created new demand for dairy products in the form of government contracts. By the end of the
war, Nestlé's production had more than doubled. After the war Government contracts dried up
and consumers switched back to fresh milk. However, Nestlé's management responded quickly,
streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new
products, with chocolate the Company's second most important activity.
1938-1975
Nestlé felt the effects of World War II immediately. Profits dropped from$20 million in 1938 to
$6 million in 1939. Factories were established in developing countries, particularly Latin
America. Ironically, the war helped with the introduction of the Company's newest product,
Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the
war time economy. The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and companies were acquired. In 1947 came a lot of mergers. Diversification
came with a shareholding in L'Oréal in 1974.
1975-1996
Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line
allowed the Company to launch a new round of acquisitions, the most important being American
food giant Carnation.
1996-2000
The first half of the 1990s proved to be a favorable time for Nestlé: 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 farflung and diverse as Nestlé. While progress since then has not been as encouraging, the overall
trends remain positive. Nestlé opened the 20th century by merging with the Anglo-Swiss
Condensed Milk Company to broaden its product range and widen its geographical scope.
2000-present
In July 2000, Nestlé launched a Group-wide initiative called GLOBE (Global Business
Excellence), aimed at harmonizing and simplifying business process architecture; enabling
Nestlé to realize the advantages of a global leader while minimizing the drawbacks of size.
Nestlé was First to Produce: Infant milk, Condensed milk, Milk chocolate, Soluble coffee and
Freeze-dried coffee.
Nestlé Pakistan
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. - a company of Swiss origin headquartered is
Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock
exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak ltd and took
over management in 1992. For ten years in a row, the company has won a place among the top
25
companies
of
the
Karachi
Stock
Exchange.
Headquartered in Lahore, the Company operates four production facilities. Two of its factories in
Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and one in
Karachi produce bottled water. Through its effective marketing and a vast sales and distribution
network throughout the country, it ensures that its products are made available to consumers
whenever,
wherever
and
however.
Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image, and we continue to enhance the quality of life of people.
Nestlé Pakistan now operates the biggest milk collection operation in Pakistan, Currently, Nestlé
Pakistan collects milk from an estimated 190,000 farmers spread over 145,000 sq Km's in the
province
of
Punjab
and
Sindh.
Nestlé believes in creating shared value and is committed to the communities it works and lives
with. In Pakistan, the company is working closely with the communities in areas related to
Nutrition, Water and Rural Development, and continues to enhance the quality of life of people
throughout
its
value
chain.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on
Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to
serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health &
Wellness. Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in
our DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that
food
choices
affect
their
health
and
quality
of
life.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture. Nestlé’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 are, and for all age groups.
In line with Nestlé’s global philosophy, Nestlé Pakistan is proud of its commitment to excellence
in product safety and quality and to providing value and aims to be the leading Nutrition, Health
and Wellness Company. As a socially responsible corporate, we always focus on environment
friendly operations, ethical business practices and our responsibility towards the communities.
Nestle product”
Nestle Pakistan Limited (NPL), formerly known as Nestle Milkpak Limited, is a subsidiary of
Nestle SA. – a company of Swiss origin headquartered in Vevey, Switzerland. It is listed on the
Karachi and Lahore stock exchanges. For 9 years in a row, the company has won a place among
the top 25 companies of the KSE.
Its principal activities include manufacturing, processing and selling food products and ancillary
equipment. The food products include dairy, confectionery, infant nutrition and culinary
products, coffee, beverage and drinking water. The major brands include MILKPAK UHT,
EVERYDAY, LACTOGEN, NESLAC, CERELAC, NESTLE PURE LIFE, NESCAFE,
MAGGI and KITKAT.
Nestle has been serving Pakistani consumers since 1988, when its parent company, the
Switzerland-based Nestle SA, first acquired a share in Milkpak Ltd. Nestle Pakistan is
headquartered in Lahore and operates four production facilities. Two of its factories in
Sheikhupura and Kabirwala are multi-product factories.
To preserve the quality of raw milk in hot weather conditions in Punjab the company has made
substantial investment in setting up an extensive cold chain by installing over 2200 chilling units
all over the milk shed area.
Nestle moto
Good food, good life
Nestle products
Water
Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex, S.Pellegrino,Acqua Panna, Levissima,
Arrowhead, Poland Spring, Deer Park, Ozarka,Hépar, Ice Mountain, Zephyrhills
Other beverages
Nestea, Nesquik, Nescau, Milo, Carnation, Libby’s, Caro, Nestomalt,Nestlé
Shelf stable
Nestlé Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça,Klim, Gloria, Svelty,
Molico, Nestlé Omega Plus, Bear Brand, Coffee-Mate
Chilled
Nestlé Sveltesse, La Laitière, La Lechera, Ski, Yoco, Svelty, Molico, LC1,Chiquitin
Ice cream
Nestlé Antica Gelateria del Corso, Dreyer's/Edy's, Drumstick/Extrême,Maxibon/Tandem, Mega,
Mövenpick, Sin Parar/Sem Parar/Non Stop
Infant nutrition
Nestlé Nan, Lactogen, Beba, Nestogen, Cerelac, Neslac, Nestum,Guigoz, Good Start
HealthCare nutrition
Nutren, Clinutren, Peptamen, Modulen
Bouillons, soups, seasonings, pasta, sauces
Maggi, Buitoni, Thomy, Winiary,Torchin
Refrigerated products (cold meat products, dough, pasta, pizzas,sauces, snacks)
Nestlé, Buitoni, Herta, Toll House
Chocolate, confectionery and biscuits
Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties, Butterfinger,Aero, Polo