Quality of Wofk Life

8/11/2019 Quality of Wofk Life

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A

PROJECT REPORTROJECT REPORTONN

NESTLEESTLE

FOR THE PARTIAL FULLFILLMENT OF BACHELOR OF BUISNESS

ADMINISTRATION

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

SUBMITTED BY:

VIPUL

BBA (GEN)

SUBMITTED TO:

Mr. AMIT GUPTA

COURSE CORDINATOR OF BBA (GEN)

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

AFFILATED TO GURU GOBIND SINGH INDRPRASTHA

UNIVERSITY

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ACKNOWLEDGEMENT

I here with take the opportunity to express my profound sense ofgratitude and reverence to all those who have helped andencouraged me towards the successful completion of the project .Its

been a great experience working on NE!"E .It give me completeinsight about how an organi#ation not only survives in cutthroatcompletion but also maintain a killer instinct in the competitiveworld.

I would like to thank my project guider $r. AMIT GUPTA for hisimmense guidance .% valuable help and provided me the opportunity

to complete the project under his guidance

I would like to thanks all the faculty members of MAHARAJAAGRASEN INSTITUTE OF MANAGEMENT STUDIES forguiding me and supporting me in the completion of this project fromtime to time

"ast but not least my greatest gratitude to the almighty and myparents& without their support this dream would have remaineddream

CERTIFICATECERTIFICATE

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!his is to certify that (I)*" study in our institute MAHARAJA AGRASEN

INSTITUTE OF MANAGEMENT STUDIES was allotted the project on

NESTLE+ by ,uru ,obind ingh Inderprastha *niversity has successfullycompleted it under the guidance of $r. %$I! ,*)!%

DECLARATIONDECLARATION

I here by declare that the project work entitled NESTLE is an

authentic work carried out by me under the guidance of $-.


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%$I! ,*)!% /project coordinator0 for a practical fulfillment of the

degree of %/,EN0 and this has not been submitted anywhere

else for the award of any degree

Name of the student

(I)*"

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INDEX

CHAPTER

OJECTIVE

RESEARCH METHODOGY

CHAPTER !

INTRODUCTION COMPANY PROFILE

CHAPTER "

ANALYSIS OF DATA

PRODUCTS

CHAPTER #

CONCLUSION

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

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EXECUTIVE SUMMARY

The current millennium has unfolded new business rules mostthe significant of them being that company has to constantlylook into minds of the customer. Customer loyalty plays asignificant role and today securing that loyalty requires qualityright price and of course last but not the least i.e. creatingawareness about their service. As a trainee, I was givenknowledge about the way and style of their working, theirroutine and their environment. It was a great experience ingetting under such a reputed company, which has in it the

ability to retain customer.

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OBJECTIVE

!o identify the services and products offered byNE!"E.

!o study and analy#e the customer perception andpreference about NE!"E.

5inally to draw the various conclusion andrecommendation on the on the basis of studyconducted.

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RESEARCH METHODOLOGY

anagers need information in order to introduce products and

services that create value in the mind of the customer. !ut the

perception of value is a sub"ective one, and what customer#s value

this year may be quite different from what they value next year. As

such, the attributes that create value cannot simply be deduced

from common knowledge. $ather, data %information& must be

collected and analy'ed. The goal of arketing $esearch

%analysis& is to provide the facts and direction that managers need

to make their more important marketing decisions.

The analysis involves the following steps(

)efine the problem.

)etermine research design.

Identify data types and sources.

)etermine sample plan and si'e.

Collect the data.

Analy'e and interpret the data.

*repare the research report.

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+or the purpose of study, data from the inhouse survey conducted

by the marketing department %secondary data& has been used and

also for coming out with the recommendation. It was also felt that

mere secondary data would not provide indepth information for

the analysis, hence it was decided that interactive discussions with

the managers and the head of every department would help in an

indepth and true understanding of challenges faced by the

department.

The methodology adopted was to gather relevant information from

the appropriate department, correlate the information obtained and

to present the information in a logical and systematic manner.

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INTRODUCTION

-estle India td. is a part of the -estle /A group which is one of the largest manufacturin

companies in the world. 0enri -estle founded the company %with its headquarters in 1eve

/wit'erland& in 2345. -estle has two ma"or divisions Le Societe des Produitswhich

looks after the production and marketing and Nestec Ltd. which provides the technical

assistance to the group companies. /ince its inception in 2345, the company has diversifi

it product range from the infant weaning formula %which was its first product& to beverages

confectionery, ice creams and pet foods among others. In a span of 267 years the compa

has ranked 84th among the world#s largest corporations and boasts of a turnover of 9

:3;68.< million and employee strength of 882,2:: people spread over 5< countries

worldwide %Annexure A&.

-estle has long been viewed as one of the most multinational

of the multinationals. This is because today only 8= of its

turnover comes from /wit'erland. >ut of the remaining ;3=,

?urope contributes :6.


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Comp!" Pro#i$e

Although -estle has been associated with India since the

beginning of the century through the importing and trading of infant

food and condensed milk, manufacturing in India only began with the

setting up of the factory in oga in 2;48. The first product to be

manufactured was Mi$%mid. In the last 6< years the company has

shown rapid progress and has increased its product range to 37products as of >ctober 2;;5. -estle India td. now ranks 88nd

amongst India#s most valuable companies %Annexure !& . Its gross

revenue has increased from $s 2772.2 crores to $s. 2826.3 crores in

2;;4. This remarkable growth has been achieved through

$apidly creating greater manufacturing capacity, both at factories

as well as with copackers.

Taking measures to ensure availability and improved quality of key

raw materials fresh milk in particular.

/trengthening of the sales and distribution network %particularly in

smaller towns&

Ambitious and cohesive manpower training and development

programs for the personnel of the company across all disciplines.

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The company#s exports also resulted in a very successful year in

this area as exports grew by 85= to $s. 8


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T&e Spirit o# Nest$e

Organisational excellence is never achieved through a one time

effort; It is always a process of continuous improvement across a

number of areas of operation.

A key factor for -estle#s success has been its quest for

continuous improvement through ushering in greater productivity and

more efficiency in everyday operations. )espite the infrastructure

impediments in India, -estle has set itself high standards of business

performance. This is reflected through the essence of the company its

mission statement.

Nest$e's missio!

To be in every way the leading company in the Indian food

industry and a good corporate citi'en by providing our consumers with

superior quality products, our shareholders with rapid growth D fair

returns and our employees with a challenging and satisfying work

environment.E

To translate this spirit into a planned and measurable process,

-estle has set up key ob"ectives across all divisions.

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Key Objectives

Productio!

To optimise production costs while enhancing product quality so as

to make -estle products even more competitive in the market place.

S$es !d mr%eti!(

To reach a sales turnover of 6777 crores by the year 8776

To double the turnover every three years

Peop$e

To help employees to retain a long term perspective and integrate

them fully with the company#s business goals

To retain a broad perspective while addressing individual needs

To view growth as a continuous process

To concentrate on attitudinal changes by developing leadership

skills, an appreciation of interdependence between units and the

enhancement of a sense of belonging to -estle.

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)i!!ce

To maintain profit levels above the average for the food industry in

India.

The !usiness ?xcellence and Common Application %!?CA& initiative

essentially translates the spirit of the ourney towards excellence into

an organised, systematic and measurable approach. The aim is to aid

the achievements of the company#s key ob"ectives of rapid growth byensuring that all operations incorporate the spirit of meaningful

planning, effective cost control and efficient implementation. !?CA is

about * p$!!ed impro+eme!t i! e+er"t&i!( ,e do -

Factories

-estle has 4 factories in India. These are

./ Mo( 0pu!123 4 The -estle factory in oga has the pride of being

the first and most comprehensive factory of -estle India. /et up in

2;48, it represents the core competence of -estle India in the

manufacture of milk products %?veryday, ilkmaid&, beverages, culinary

products %aggi sauces, noodles, soups etc.&, weaning cereals

%Cerelac& and infant milk formulae.

5/ C&o$di 0 Tmi$ Ndu34 The factory in Choladi started production in

2;45. /ituated about 47 miles from Calicut, the factory today has 32

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employees and produces 2. was also commissioned at

this factory. This factory employs 2:< people and is cited as a model interms of environment protection for its installations to purify waste

water as well as for its provisions for recycling coffee wastes.

8/Sm$%& 0Hr"!34 This factory was set up in 2;;6. ocated 57

kilometres from )elhi , it manufactures weaning cereals , culinary

products ,health beverages and milk products. $ecently the expansion

of manufacturing capacity for ilkmaid )essert ixes was undertaken

at this factory as this new and unique product category is viewed to

have great potential in the future.

9/Po!d 0Go34 This FitFat factory was set up in Boa in 2;;< at a

cost of $s.


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The construction work at this new factory is progressing with

speed. This factory will soon commence the manufacture of culinary

products, which is a key thrust area for the company and will include

latest technological improvements relating to this category of products.

As a part of -estles efforts towards continuous improvement and

excellence in anufacturing operation, a oga Improvement team

%IT& was put in place at the oga factory. The team comprised of

international experts from -estle Technical /ervices %-?/T?C& and thelocal staff. In 2;;4, it embarked on a program with the single minded

ob"ective of optimi'ing production costs while enhancing the product

quality so as to make -estle products even more competitive in the

market place. )rawing upon -estle#s global experience and

manufacturing expertise in 5< countries the team identified the

following areas for detailed study

*rocess improvement to ensure the optimal usage of resources

Improvement of operational efficiency

Cost optimi'ation

A series of small but critically important initiatives ranging from

redesigning laboratories to palletisation of raw materials and packaging

material utili'ation, manufacturing and filling loses and labour man

hours resulting in substantial savings and improved productivity and

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machine utili'ation. In addition, several non tangible benefits in the

form of systems for sustainable improvement in areas like factory

maintenance planning tools , down time recording systems and

performance measurement tools were also reali'ed .

This pro"ect was highly successful and the company is now

implementing its key learning#s of IT in its other factories.

In a country as vast and diverse as India, supp$" c&i!m!(eme!t is absolutely critical to rapid growth. Through !?CA,

-estle has concentrated heavily on streamlining and improving their

supply chain management in order to make it more dependable, more

cost effective and most importantly, more responsive to market needs.

+or better supply chain integration the planning of key

operations purchase, production, distribution and sales are

synchronised to ensure that everybody works towards a common

business plan. onthly ob"ectives are broken down into weekly and

%wherever necessary& into daily plans and monitored regularly to

ensure smooth implementation and quick corrective action when

needed . a"or benefits accrued thus far include reduction in working

capital through lower inventories of finished goods and materials,

better stock availability and reduction in obsolescence of materials.

In addition to traditional performance indicators, quantifiable

performance measures have been identified and implemented in all

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functional areas such as sales planning, production output, quality

assurance, material ordering transportation and warehouse

management. These measures are monitored regularly to gauge the

extent of improvement and identify root problems for taking corrective

actions.

Teams have been put in place at all factories and sales offices to

ensure the implementation is continuous and selfsustaining. Areas of

improvement are regularly identified and time bound action plansestablished. +or this purpose, standard tools such a Total Guality

anagement%TG&, Fai'en,


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Mr%eti!( Strte("

-estle has adopted a four pronged growth strategy(

2. Bunning the market with new products and brand extensions.

8. ?xpansion of the distribution network to small towns for extensive

availability.

6. $educe prices and introduce smaller packages for products to

make them more affordable %a tool to enter price sensitive markets&.

:. +ocus on employ training and develop a positive attitude through

enhanced manpower development.


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distribution set up , this gave rise to the following growth ob"ectives for

the year 8776

?nsure direct coverage of all urban towns in India.

?xpand distribution to reach 2 million retail outlets on a regular

basis.

Hork in partnership with the distributor for the achievement of theseob"ectives.

*rovide sustainable solution to optimi'e our secondary sales from

distributor to retailer.

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NE< PRODUCT LAUNCHES

To put all the product launches into perspective, -estle now has

37 products including various flavours and variants this awesome list of

37 products for most companies is an overfull palate. -estle India td.

/till have a variety of new products in the pipelines. It believes in

slowly coloni'ing as much territory as fast as it can, adapting to native

conditions and then work at holding off the advancing herdsE. -estle

products can be broadly classified into < main ranges

ilk *roducts

Chocolate and Confectionery

!everages

Culinary

+ood service

Mi$% Products

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This category which comprises of condensed milk, baby milk

foods , milk powders , acidified infant food , and other milk products,

showed a slump in 2;;4 as sale of milk products fell from $s 62.:

crores in 2;;< to $s 62.8 crores in the said year. Consumer offtake

remained depressed throughout this year as a consequence of high

price increases necessitated by substantial increases%>, backed by its tremendous

success in the Indian arket by adding *>> /pearmint to its

*ortfolio. This new flavour has also received an encouraging

response in the market according to market analysts.

ilkybar also retained its position as the number one white

chocolate brand in India, however it did not record a significant

increase in sales as a ma"ority of Indian tastes still do not accept this

flavour.

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This year however, was a year of tremendous success for Fit

Fat .This internationally renowned brand gained a large increase in the

arket share in the past year and -estle officials are hopeful that this

will further increase in the coming years. 0owever this !rand along

with it success has brought with it its share of Controversy as the @nion

of India has launched a itigation against the Fit Fat family pack.

In 2;;5 -estle added to its range of confectionery by

introducing /*A/0, A soft hearted, hard boiled sweet E this is beingpromoted as a sweet unique to India and is positioned to a target

audience in the age group of : to 28 years and anyone with a soft

heartE is a potential customer. *riced at $s. 2 for a 5.< gram candy

splash has been introduced selectively in the /outh and has been

speculated to repeat *olo#s performance. -estle#s officials claim that

this candy has the potential to grab a quarter of the 577 crores

confectionery market.

The most recent of -estle affairs with the confectionery market

has been the introduction of ithai agic which is a little ithai , a

little magic .This new product was launched in /eptember 2;;5 ,in

time for the )iwali purchases of sweets . This brand has been

positioned somewhere between chocolates and traditional sweets and

the company is employing a push strategy to promote this brand.

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;e+er(es

This year has been verysuccessful in the beverages market for

-estle .The sales of beverages has increased from $s 686.6 crores in

8778 to $s 6;3.3 crores in 8776.

-estles +lagship -escafe which was pegged at $upees 27:7

per Filogram before the launch of Tata Cafe, met with stiff competition

from Tata Cafe priced at $upees


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Cu$i!r" Products

The market in culinary products had witnessed a high growth

consequent to aggressive pricing decisions on existing products and

the introduction of a variety of new products to match the needs of the

Indian 0ousewife. ?ncouraged by this success -estle launched aggi

acoroni /nack in three flavors Chicken , asala and Tomato. -estle

officials# say that this would consolidate aggis position as the number

2 culinary brand in India. The product focuses on convenience and

innovation as its @nique /elling *roposition. This snack has opened a

new segment for the maggi brands. The brand is positioned as youthful

and is represented by the twists and curls of the macaroni snack. It is

speculated to be introduced in a phase manner nationwide to be

placed in the 5.< lakh outlets that aggi noodles sells in .

In the spirit of catering to Indian tastes aggi introduced maggi

pickles in five variants benchmarked to give the ghar ka swadE. aggi

)osa ix was also introduced to offer superior quality and added

convenience. Apart from this ilkmaid Falakand ix, a traditional north

Indian sweet of premium quality was added to the milkmaid dessert

mixes. aggi soup also launched three new variants. aggi $assam in

particular was noticeable as yet another attempt to make traditional

Indian cooking a little bit easier.

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)ood Ser+ice

+ood service items basically deal with the out of home

segments, which would include vending machines. -estle#s food

service business is poised for rapid expansion to meet the growing

need for such a reliable, time saving and cost effective service in this

modern age .

-estle wants to sell


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-estle to be a leader in the food industry, expanding the distribution

network for more retail outlets was a must.

To meet this challenge, -estle is working towards an ob"ective

of increasing the retail base to 2,777,777 outlets by the year 8776. This

network is feasible as -estle has a triangular distribution structure thus

the span of control is still retained. The )istribution -etwork is

explained in figure 8.

In order to achieve these distribution ob"ectives -estle has

formulated an international sales and marketing improvement team

%/IT&. /IT focuses on a single ob"ective provide sustainable

solutions to optimi'e the distributor and retailer sales through a step by

step approach starting with analysis of market followed by identification

of the probable retail outlets and finally selection of the same .The

team also focuses on proper implementation of resources and timely

follow ups for effective solutions.

Ad+ertisi!( Strte("

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-estle, a cash rich company has plenty of marketing prowess.

This can be credited to a strong and sound advertising strategy.

-estle in the year 8778 had an advertisement spending of $s

:6.6 crores %net& . Tracing -estles advertising responses the ad

campaign by 0TA of J0ot and /weet# was a runway success this ad

was actually meant to fend off a challenge from 0. 0ein'. The aggi

ranges of sauces were introduced in 2;3< but sales didn#t catch up

until 2;;7 but till 8776 it got considerable market share. At this pointthe popular and memorable campaign of aved affrey and *anka"

Fapoor was launched by *roducer *ralad Fakkar . This commercial

was an instant success. The volume of sales kept rising from an initial

growth of 26= to 87= in the next year. Today the sales figure for aggi

/auces is growing at a steady 4= per year.

Another noteworthy campaign was that of *>> %the mint with a

hole&, devised by udra advertising agency. This campaign was

awarded 22 industry ad awards.

In 8778 the advertisement budget has been approximately $s


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Training is an integral and indispensable part of Nestle . I regard the

importance of training a highly as research and development .It is a

maor investment in the !uture of the company and imperative because

it is an investment in people

" #r. $elmut #aucher

%hairman and %&O Nestle ' (

)roup

-estle India td. has an employee base of 67:7 people andaims to be in the top quartile of the +CB companies .+or this

purpose it follows a very stern and rigorous recruitment policy .

Recruitme!t Po$ic"

$ecruitment of fresh management trainees and sales officers is

done every Aprilay. These graduates are generally selected from the

best institutes in the country through a series of interviews. They are

then put through a probation period of 2823 months. Although -estle

does not offer some of the highest pay packets in the industry, it is

considered a growth oriented company.

Tri!i!( !d De+e$opme!t

Continuous development of skills and attitudes of employees is

critical to the achievement of excellence. At -estle therefore training

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and development of human resources is viewed as a long term

investment .

* I# "ou re p$!!i!( #or o!e "er = P$!t ,&et>

I# "ou re p$!!i!( #or te! "ers= p$!t tree>

I# "ou re p$!!i!( #or $i#e= tri! peop$e/-

? O$d C&i!ese pro+er2

This proverb goes with the organi'ations most enduring beliefs

worldwide

That long term planning is the key to -estles global success

That -estle#s most valuable assets are its people

-estle#s policy is to rely on a more decentrali'ed form of

management by building in the habit to Think -estleE.

At -estle India training and development is an integral part of

the business plan and strategy in line with the ob"ectives for the year

8776 and aims to

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0elp employees to retain long term perspective and integrate them

fully with the company#s business goals

1iew the growth of both the personnel and the company as a

continuous process .

Concentrate on attitudinal changes by developing leadership skills,

an appreciation of interdependence between units and the

enhancement of a sense of belonging to -estle .

In 8776 -estle India benefited greatly from the training program

offered at the $ive $eine International Training Center at 1evey,

/wit'erland. This training program helped facilitate the transfer of

common Fnowledge %technical, marketing, and finance& across the

-estle Broup and ensure interdisciplinary approach to learning and

uniform progress with a tailormade approach for all.

Company Training needs

analysis of training needs of anagers

self development programs for staff at 0>

programs for company orientation and information sharing

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programs aimed at computer training and computeri'ation

?stablishment of contact with leading management institutes with a

view to use the same for meeting local training requirements

Nest$e's Corporte Cu$ture

As we had discussed before, -estle is one of the most

multinational of multinationals and is spread over 5< countries

worldwide. This implies that it has employees from diverse cultural

backgrounds. -estle respects the distinctive culture, mentality and

traditions of every employee in every country. Hhat -estle aims at is to

incorporate its own culture into its employees without stifling the

individual employee#s culture and identity. Hhen we went to -estle we

could feel the existence of a distinctive work culture amongst the

management the staff seemed highly motivated D cheerful and

everybody had pin up boards in front of their tables with reminders ,

motivational messages and even time logs %the -estle people seemed

as if they availed of the benefits of time management& .


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Apart from this, -estle has a vast distribution network. In order

to support the !?CA process, an integrated computer system has been

put in place across the company to link all functional areas and

locations. This common linked system will improve information

availability, aid quick decisionmaking and improve supply chain

integration.

-estle has a diverse product range and so it also has diversified risks

Thus anagement on Information systems plays a vital role in -estle

to provide information to the /ales and arketing as well a the

finance department .The ?lectronic )ata *rocessing )epartment

looks after anagement Information /ystems .

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Nestle India Ltd., is a part of the Nestle SA group, which

is one of the largest manufacturing companies in the

world. The company (with its headquarters in Veey,

Swit!erland" was founded #y $enri Nestle in %&'.

Nestle has two ma)or diisions*Le Societe des Produits

which loo+s after the production and mar+eting and

Nesstec Ltd. which proides the technical assistance to

the group companies. Since its inception in %&', the

company has diersified i t product range from the infant

weaning formula (which was its f irst product" to

#eerages, confectionery, ice creams and pet foods

among others. In a span of %- years the company has

ran+ed 'th among the world/s largest corporations and

#oasts of a turnoer of 01&2.3 mil lion and an

employee strength of %,%11 people spread oer 3

countries worldwide (Anne4ure A".

Nestle has long #een iewed as one of the most

multinational of the multinationals. This is #ecause

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today only 5 of its turnoer comes from Swit!erland.

6ut of the remaining 2&5, 7urope contri#utes 1.35,

North and South America contri#ute '.35 and %&5 is

contri#uted #y Africa and Asia 8acific 9egions.

OVERVIEW

Although Nestle has #een associated with India since the

#eginning of the century through the importing and

trading of infant food and condensed mil+,

manufacturing in India only #egan with the setting up of

the factory in :oga in %2'. The first product to #e

manufactured was :il+maid. In the last 3 years the

company has shown rapid progress and has increased its

product range to &- products as of 6cto#er %22. Nestle

India Ltd. now ran+ ndamongst India/s most alua#le

companies (Anne4ure ;". Its gross reenue has

increased from 9s. %--%.% crores to 9s. %%.& crores in

%22'. This remar+a#le growth has #een achieed

through; and Fhase San#orn

roast and ground coffee #rands (=SA".

--' Acquisi tion of 8ower;ar.

Factories

Nestle has ' factories in India. These are

6 o"a 0#un7a82

The Nestle factory in :oga has the pride of #eing the

first and most comprehensie factory of Nestle India.

Set up in %2', it represents the core competence of

Nestle India in the manufacture of mil+ products

(7eryday, :il+maid", #eerages, culinary products

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(:aggi sauces, noodles, soups etc.", weaning cereals

(Ferelac" and infant mil+ formulae.

%6 C9oladi 0 Tamil Nadu2

The factory in Fholadi started production in %2'.

Situated a#out '- miles from Falicut, the factory today

has &% employees and produces %.35 of the total

turnoer of Nestle India. It is a %-- percent e4port

oriented unit which processes freshly pic+ed tea leaes

into solu#le instant tea.

:6 Nan7a"ud 0Karnata!a2

8roduction in this factory #egan in %2&2 with the

manufacture of Nestle instant coffee and Sunrise. Today

in addition to instant coffee the factory also

manufactures health #eerages. The plant to

manufacture :IL6 was also commissioned at this

factory. This factory employs %13 people and is cited as

a model in terms of enironment protection for its

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installations to purify waste water as well as for its

proisions for recycling coffee wastes.

;6Samala!9a 0+ar*ana2

This factory was set up in %22. Located - +ilometres

from elhi , it manufactures weaning cereals , culinary

products ,health #eerages and mil+ products. 9ecently

the e4pansion of manufacturing capacity for :il+maid

essert :i4es was underta+en at this factory as this new

and unique product category is iewed to hae great

potential in the future.


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The construction wor+ at this new factory is progressing

with speed. This factory wil l soon commence the

manufacture of culinary products, which is a +ey thrust

area for the company and will include latest

technological improements relating to this category of

products.

As a part of Nestles efforts towards continuous

improement and e4cellence in :anufacturing operation,

a :oga Improement team (:IT" was put in place at the

:oga factory. The team comprised of international

e4perts from Nestle Technical Serices (N7ST7F" and the

local staff. In %22', it em#ar+ed on a program with the

single minded o#)ectie of optimi!ing production costs

while enhancing the product quality so as to ma+e

Nestle products een more competitie in the mar+et

place. rawing upon NestleEs glo#al e4perience and

manufacturing e4pertise in 3 countries the team

identified the following areas for detailed study *

8rocess improement to ensure the optimal usage of

resources

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Improement of operational efficiency

Fost optimi!ation

A series of small #ut critically important initiaties

ranging from redesigning la#oratories to palletisation of

raw materials and pac+aging material uti li!ation,

manufacturing and filling loses and la#our man hours

resulting in su#stantial saings and improed

productiity and machine utili!ation. In addition, seeral

non tangi#le #enefits in the form of systems for

sustaina#le improement in areas li+e factory

maintenance planning tools , down time recording

systems and performance measurement tools were also

reali!ed .

This pro)ect was highly successful and the company is

now implementing its +ey learningEs of :IT in its other

factories.

In a country as ast and dierse as India, su##l* c9ain

mana"ement is a#solutely critical to rapid growth.

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Through ;7FA, Nestle has concentrated heaily on

streamlining and improing their supply chain

management in order to ma+e it more dependa#le, more

cost effectie and most importantly, more responsie to

mar+et needs.

?or #etter supply chain integration the planning of +ey

operations * purchase, production, distri#ution and sales

are synchronised to ensure that eery#ody wor+s

towards a common #usiness plan. :onthly o#)ecties are

#ro+en down into wee+ly and (whereer necessary" into

daily plans and monitored regularly to ensure smooth

implementation and quic+ correctie action when needed

. :a)or #enefits accrued thus far include reduction in

wor+ing capital through lower inentories of finished

goods and materials, #etter stoc+ aaila#il ity and

reduction in o#solescence of materials.

In addition to tradit ional performance indicators,

quantifia#le performance measures hae #een identified

and implemented in all functional areas such as sales

planning, production output, quality assurance, material

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ordering transportation and warehouse management.

These measures are monitored regularly to gauge the

e4tent of improement and identify root pro#lems for

ta+ing correctie actions.

Teams hae #een put in place at all factories and sales

offices to ensure the implementation is continuous and

self*sustaining. Areas of improement are regularly

identified and time#ound action plans esta#lished. ?or

this purpose, standard tools such a Total Jual ity

:anagement(TJ:", Cai!en, 3S and Small @roup

improement actiity (S@IA" are #eing e4tensiely used.

The efficacy of this hierarchical structure is seen in

NestleEs performance oer past few years of arious

products.

;y %2&2 the company had achieed a sales figure of

appro4imately 9s. 3& crores. %2&2 was the year of

launches. Seen new product lines were launched in this

year. This was also the year in which the Nan)agud

factory was set up. ;y the year %22, this sales figure

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was touching 9s 3-- crores. In the %22-Es the pace of

launches quic+ened and since the construction of the

factory at Samala+ha, - new products hae #een

introduced. ;y %22', Nestle had a#out ' different

products in its portfolio with arious new products in the

pipeline as well. The sales figure now touched 9s. %%1

crores. Thus sales grew #y 13-5 oer a period of one

and a half decades.

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TO,.Y NESTLE IS PRESENT IN ,I$$ERENT

.RKETS WIT+ T+E $OLLOWIN5 .IN BR.N,S

Solu8le co((ee

Nescafe, Taster/s Fhoice, 9icore, 9icoffy.

Roast and 5round Co((ee

$ills ;ros., :>;, ;on+a, Koegas, Loumidis

ineral Water

8errier, Fontre4, Vittel, Valert, Jue!ac, Arrowhead,

8oland Spring, ;u4ton, Vera, ;laue Juellen, Falistoga,

Santa :aria, San 8ellegrino.

Ot9er 8e-era"es

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,air* Product

Nido, Nespray, Farnation, :il+maidG La Lechera, @loria,

Neslac, ;arenmar+e.

Brea!(ast Cereals

Nestle

Co((ee Creamers

Foffee*mate

In(ant $oods and ,ietetic Products

Nestle, Nan, Lactogen, Ferelac, Nestum, @uigo!

Culinar* Products 0Bouillons) sou#s) seasonin"s)

#re#ared dis9es) canned (ood) #asta) sauces2

:aggi, Frosse and ;lac+well, Li##y/s, Thomy, ;uiltoni,

Fontadina

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$ro=en $oods

?indus, Stouffer/s ;uitoni, :aggi

Ice Cream

Nestle, ?risco, airy ?arm, :agnolia, :otta, Famy , ect.

Re(ri"erated Products 0*o"urts) desserts) #asta

sauces2

Nestle, Locatelli, Vismara, ;uitoni, Fontadina

C9ocolate and Con(ectioner*

Nestle, Frunch, Fail ler, ?r igor, Fho+ito, Sarott i,

@ala+G:il+y#ar, es, Cit Cat, Juality Street, Smarties,

;aci, After 7ight, ;a#y 9uth, ;utterfinger, Lion, Nuts,

9olo, Aero, 8olo, etc.

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$ood Ser-ices and Pro(essional Products

Fhef, aigel, Santa 9ica

Pet Care

?ris+ies, ?ancy ?east, Aplo, :ighty og, @ourmet.

S#eciali=ed #roducts (or t9e (ood industr*

?ood Ingredients Specialties (?IS"

O#9t9almolo"ical #roducts

Alcon

Cosmetics

L/6real

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NEW PRO,>CT L.>NC+ES

To put all the product launches into perspectie, Nestle

now has &- products including arious flaors and

ariants this awesome list of &- products for most

companies is an oerfull palate. Nestle India Ltd. still

has a ariety of new products in the pipel ines. It

#eliees in slowly coloni!ing as much territory as fast as

it can, adapting to natie conditions and then wor+ at

/$olding off the adancing herds/. Nestle products can #e

#roadly classified into 3 main ranges

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Quality of Wofk Life