NESTLE

Corporate Office- Vevey, Switzerland.

Turnover - 86 billion dollar.

INTRODUCTION

Nestlé is a Swiss transnational food and drink company headquartered

in Vevey, Vaud, Switzerland. It is the largest food company in the world measured by

revenues, and ranked #72 on the Fortune Global 500 in 2014.

Nestlé has 447 factories, operates in 194 countries, and employs around 339,000

people.

Nestlé has 64 brands, with a wide range of products across a number of markets,

including coffee, bottled water, milkshakes and other beverages, breakfast

cereals, infant foods, performance and healthcare

nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food.

Nestlé is the biggest food company in the world, with a market capitalisation of

roughly 231 billion Swiss francs, which is more than US$ 247 billion as of May 2015.

In 2014, consolidated sales were CHF 91.61 billion and net profit was CHF

14.46 billion. Research and development investment was CHF 1.63 billion. It is one of

the main shareholders of L’Oreal, the world’s largest cosmetics company

Percentage of sales by geographic area breakdown

o 43% from Americas

o 28% from Europe

o 29% from Asia, Oceania and Africa

The company grew significantly during the First World War and again following the

Second World War, expanding its offerings beyond its early condensed

milk and infant formula products.

Nestlé is a Swiss company.

Long-term investment, transfer of technology, and training in agriculture

are just three ways in which Nestlé is a force for good around the world.

A recent example is Nestlé in China. In 1987, the first joint-venture

company, Nestlé Shuang cheng Ltd, was established in Heilongjiang

Province. Applying our expertise in nutrition and food processing, the

first local production in mainland China started in 1990.

Nestlé’s know-how has helped China to replace imports in foreign

currency with locally manufactured products of equally high quality.

Since 2000, 99% of Nestlé products sold in mainland China are

manufactured locally, and Nestlé has become a very significant buyer of

local raw and packing materials.

We now have more than 20 factories in the Greater China Region. Our

Research & Development Centre in Shanghai was set up in 2001.

Today, we offer attractive employment to some 12,000 local staff, and

hundreds of additional jobs are created every year.

In China, Nestlé buys milk from some 22,000 farmers and contributes

directly or indirectly to the welfare of about 100,000 people in the

country.

RELATIONSHIP

NESTLÉ India is a subsidiary of NESTLÉ S.A. of

Switzerland.

The company has made a number of corporate acquisitions, including Crosse &

Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in

1988, and Gerber in 2007.

Nestlé 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 (born Heinrich Nestle).

Joint ventures include:

Cereal Partners Worldwide with General Mills (50%/50%)

Beverage Partners Worldwide with The Coca-Cola Company(50%/50%)

Lactalis Nestlé Produits Frais with Lactalis (40%/60%)

Nestlé Colgate-Palmolive with Colgate-Palmolive (50%/50%)

Nestlé Indofood Citarasa Indonesia with Indofood (50%/50%)

Nestlé Snow with Snow Brand Milk Products (50%/50%)

Nestlé Modelo with Grupo Modelo

Dairy Partners America Brasil with Fonterra (51%/49%)

BOARD OF DIRECTORS—PARENT COUNTRY

Peter Brabeck-Letmathe

o Chairman of the Board of Directors, Nestle S.A. o Chairman's and Corporate Governance Committee (Chairman) o Nomination and Sustainability Committee o Term expires: 2017

Paul Bulcke

o Chief Executive Officer, Nestlé S.A. o Member of Nestlé Board of Directors o Chairman's and Corporate Governance Committee o Term expires: 2017

Andreas Koopmann

o Chairman's and Corporate Governance Committee o Compensation Committee o Nomination and Sustainability Committee (Chairman) o Term expires: 2017

Beat Hess

o Chairman's and Corporate Governance Committee o Compensation Committee (Chairman) o Term expires: 2017

Renato Fassbind

o Chairman's and Corporate Governance Committee o Audit Committee (Chairman) o Term expires: 2017

Steven George Hoch

o Nomination and Sustainability Committee o Term expires: 2017

Naïna Lal Kidwai

o Audit Committee o Term expires: 2017

Jean-Pierre Roth

o Compensation Committee o Term expires: 2017

Ann M. Veneman o Nomination and Sustainability Committee o Term expires: 2017

Henri de Castries

o Audit Committee o Term expires: 2017

Eva Cheng

o Audit Committee o Term expires: 2017

Ruth Khasaya Oniang’o

o Board of Directors o Term expires: 2017

Patrick Aebischer

o Compensation Committee o Term expires: 2017

Board of Directors of India

Mr. Suresh Narayanan Chairman and Managing Director

Mr. Shobinder Duggal Director - Finance & Control and CFO

Mr. Aristides Protonotarios Director - Technical

Mr. R. V. Kanoria Non-Executive and Independent Director

Mr. Ashok Kumar Mahindra Non-Executive and Independent Director

Mr. Ravinder Narain Non-Executive and Independent Director

Dr. Swati A. Piramal Non-Executive and Independent Director

STRUCTURE OF BUSINESS

PARENT COUNTRY

Nestle System and Organization Structure

A company's organizational chart typically demonstrates relations between

people within an organization. Such relations might include managers to sub-

workers, directors to managing directors, chief executive officer to various

departments, and so forth. When an organization chart grows too large it can be

split into smaller charts for separate departments within the organization.

The different types of organization charts include:

Hierarchical

Matrix

Flat (also known as Horizontal)

Nestle Company is a decentralized organization that is organized

according to the matrix structure.

Nestle as a decentralized organization permits to subordinate branches to

enjoy a proportionately high-level of independence.

Although it still makes major strategy decisions at the headquarter level,

daily operations are left up to subordinate branches to derive and perform.

The responsibility for operating decisions is push down to local units

(Broeckx & Hooijberg 2008).

In organization structure, Complex system is a system that is comprises a large

number of entities that display a high level of nonlinear interactivity. There are

number of basic observations that have been made through the examination of

complex systems, mainly using computer simulation and the mathematic of non-

linearity.

INDIA

Organization Structure

After India's independence in 1947, the economic policies of the Indian

Government emphasised 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.

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.

NESTLÉ has been a partner in India's growth for over a century now and has

built a very special relationship of trust and commitment with the people of

India.

The Company's activities in India have facilitated direct and indirect

employment and provides livelihood to about one million people including

farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the

changing lifestyles of India and anticipate consumer needs in order to provide

Taste, Nutrition, Health and Wellness through its product offerings.

The culture of innovation and renovation within the Company and access to the

NESTLÉ Group's proprietary technology/Brands expertise and the extensive

centralized Research and Development facilities gives it a distinct advantage in

these efforts.

It helps the Company to create value that can be sustained over the long term

by offering consumers a wide variety of high quality, safe food products at

affordable prices.

NESTLÉ India manufactures products of truly international quality under

internationally famous brand names such as NESCAFÉ, MAGGI,

MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent

years the Company has also introduced products of daily consumption and use

such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ

Jeera Raita.

NESTLÉ India is a responsible organisation and facilitates initiatives that help

to improve the quality of life in the communities where it operates.

Strategy

With our Nutrition, Health and Wellness strategy we support people who want to live

a healthier lifestyle. Industry-leading research and development drives innovation and

supports the constant renovation of our food and beverage portfolio.

In addition, our researchers are exploring the role of nutritional therapies to maintain

or improve health and investigating how we can help people look after their skin. By

sharing our insights on global Nutrition, Health and Wellness challenges, by building

partnerships and by engaging with policymakers, stakeholders and key opinion

leaders we strive to have a positive impact on the societies in which we operate.

We empower people to make informed decisions when they choose what to eat.

Through Start Healthy Stay Healthy, our interactive, sciencebased education

programme, we help parents and caregivers provide their children with the nutrition

they need in the crucial first 1000 days of life.

Our United for Healthier Kids programme, takes this further, helping parents and

caregivers establish healthier eating, drinking and lifestyle habits for children as they

get older, and our Nestlé Healthy Kids programme is helping to deliver a healthier

lifestyle for children by teaching nutrition and encouraging physical activity.

We are on track to deliver on our commitments to reduce the amount of salt, sugar

and saturated fats in our products and remove trans fats, while maintaining consumer

preference. We are enhancing our portion guidance and improving our labelling,

printing GDAs (Guideline Daily Amounts) on the front of packs, making it easier for

people to read them.

In recent years we have reinforced and expanded our Nutrition, Health and Wellness

strategy with the creation of Nestlé Health Science and Nestlé Skin Health.

Nestlé Health Science is advancing the role of nutritional therapy to change the course

of health for consumers, patients and for our partners in healthcare.

With Nestlé Skin Health we are entering the field of specialised medical skin

treatment by offering science-based solutions for the health of skin, hair and nails

over the course of people’s lives.

We strive to meet the fast-changing expectations of our consumers because like them,

we care deeply about quality, food safety, the environment and sustainability.

Responsible behaviour wherever we operate is at the very heart of what we do. It is

our fundamental belief that for a company to prosper over the long term we need to

create value for shareholders while at the same time creating value for society.

We call this Creating Shared Value. Trusted leadership in Nutrition, Health and

Wellness is our strategic ambition, Creating Shared Value is how we go about it. The

inclusion of the Nestlé in society report, alongside this Annual Review and the

Financial Statements in the 2015 Annual Report package, reflects how Creating

Shared Value is fully embedded into internal management processes and the way we

do business.

The Nestlé Strategic Roadmap is the compass that guides our organisation, driving

internal alignment behind our goals. The roadmap shows how we deliver profitable

growth, the competitive advantages that we leverage and the organisation we have

chosen, in order to be effective and efficient. It is the framework that we use to

establish priorities and drive execution.

NAME - BHAVYA GUPTA

PRN - 16030141004

SUBJECT - PPM-IT