CFR_Project_Nestle - INTRODUCTION Name of the Company...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
INTRODUCTION COMPANY OVERVIEW Nestlé is a Swiss multinational food and beverage company. It was formed in 1905 by the merger of the Anglo- Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé. It is the largest food company in the world in terms of revenues, and about twice the size of its nearest competitor in the food and beverages sector. Nestlé has 447 factories, operates in 194 countries, and employs around 333,000 people. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice-cream, frozen food, pet foods, and snacks. 29 of Nestlé’s brands have annual sales of over CHF1 billion (about US$1.1 billion). Nestlé India has 8 manufacturing facilities and 4 branch offices with the head office located in Gurgaon, Haryana. Nestlé’s operations in India date back to 1912 when it started importing and selling finished products in the Indian market. After India's independence in 1947, Nestlé recognized the need for production and set up its first factory in 1961 in Punjab. In 1990, the company ventured into the chocolate business with Nestle Premium Chocolate. In 2001, the company launched Nestle Pure Life bottled water. In 2010, the company acquired the Healthcare Nutrition business of Specialty Foods India Pvt. Ltd. Nestlé India manufactures products under internationally famous brand names such as Nescafé, Maggi, Milkybar, Kit Kat, Bar-one, Milkmaid and Nestea. Recently the Company has also introduced products of daily consumption like Nestlé Milk, Nestlé Slim Milk, Nestlé Dahi and Nestlé Jeera Raita. The company’s future aspiration is to be the leader in Nutrition, Health and Wellness in the emerging markets. INDUSTRY OVERVIEW The food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It accounts for 32% of the country’s total food market. The industry is expected to be worth around US$ 67 billion, employing about 13 million people directly and about 35 million people indirectly The Food processing-Dairy/Fruits/Others subsector constitutes 40% of the overall food processing industry. The majority of dairy products are from the unorganized sector but the organized sector is expected to grow rapidly. The major industry players are Nestle, Britannia, REI Agro and Kwality. The total food production in India is likely to double in the next 10 years with the country’s domestic food market estimated to reach US$ 258 billion by 2015. The food processing sector has the potential to attract US$ 33 billion of investment in 10 years. The government has extended several fiscal incentives to enhance FDI in the sector. It envisages tripling the size of the processed food sector by increasing the level of processing of perishables from 6% to 20% value addition from 20% to 35% and share in global food trade from 1.5% to 3% by 2015.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern