Nestle India Limited

A Project Report On
Topic: Company Profile with special reference to
Nestle India limited

Under the Supervision of Submitted by: Vanshika Keshari

Dr. P. Vakula Kumari BBA 1st Year 1 Sem
Assistant Professor Roll No.: Y22180556

Department of Business Management

Dr. Harisingh Gour University Sagar (M.P)

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ACKNOWLEDGEMENT

I would like to express my special gratitude to the project guide ‘Dr. P. Vakula Kumari’ for her
able guidance and support in completing my Seminar and Term Paper project on First semester
“Nestle India”
I would also like to extend my gratitude to the Head of Department “Dr. Shree Bhagwat”, who
gave me this golden opportunity to do this project. I came to know about so many new things
through this project.

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Preface
This project has been prepared as a part of BBA. It is prepared with the view to include all the
details regarding the project that I carried out. The initial portion is the description and study
of the history and establishment of the company followed by the mission, vision, and values of
Nestle India. For the sake of this project, the study has been done mainly on Nestle India Ltd.
The project is continued by providing details about its global presence, status, competitors,
competitive strategies, and SWOT Analysis. The project is concluded by summarising the
studies under the headings ‘Findings’, ‘Conclusion’. I assure you to go through this project
thoroughly to learn a bit more about Nestle India.

Vanshika Keshari
Y22180556
BBA First-semester.

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DECLARaTION

Vanshika Keshari BBA 1st sem (Y22180556) hereby declare that the project titled “A project
report on Nestle India Ltd” submitted to Department of Business Administration , Dr.
Harisingh Gour University ,Sagar in partial fulfilment of the requirement for the award of the
degree of BBA, 1st year 1st sem is a record of Seminar and Term paper/ Project work carried
out under the guidance of Dr. P. Vakula Kumari. I further declare that the work reported in this
project has not been submitted, either in part or in full, for the award of any other degree or
diploma in this institute or any other institute or university.

DATE: NAME: VANSHIKA KESHARI

PLACE: SAGAR ROLL NO.: Y22180556

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CeRtificate by supervisor
This is to certify that the project titled on ‘A Project Report On Nestle India’ is an original
work done by Vanshika Keshari BBA 1st sem (Y22180556) as a partial requirement of
Bachelors of Business Administration, Dr. Harisingh Gour University, Sagar, Madhya
Pradesh. The project has been prepared under my guidance and is a record of the seminar and
term paper / project work carried out successfully. She has completed her project work under
my supervision and guidance. I wish her bright future.

____________________

Dr. P. Vakula kumari

Assistant professor
Department of Business Management
Dr. Hari Singh Gour University
Sagar, Madhya Pradesh

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Table of content

SR.NO. TOPIC PAGE NO.

01 OBJECTIVE 07

02 INTRODUCTION 08

03 HISTORY AND ESTABLISHMENT 09-10

04 MISSION AND VISION 11

05 STRAGERY 12

06 ORGANISATIONAL STRUCTURE 13-14

07 PRODUCT AND SERVICES 15-16

08 MAJOR COMPETITIORS 17

09 CORPORATE SOCIAL RESPONSIBILITY 18

10 AWARDS AND RECOGNITION 19

11 SWOT ANALYSIS 20-21

12 FINANICAL STATEMENTS 22-23

13 FINDINGS 24

14 CONCLUSION 25

15 REFERENCES 26

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OBJECTIVES
1. To gain knowledge about Nestle India Ltd.

2. To know about the history and establishment of Nestle India Ltd.

3. To identify the products and services avails by Nestle India Ltd.

4. To know the mission, vision strategy of Nestle India Ltd.

5. To study and analysis the swot analysis of the company.

.

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INTRODUCTION

Nestle’s journey in India started way back in 1912 when it began trading with British India as
The NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited. Post India’s
independence and partition in 1947, the country was in dire need of funds, investment and
adequate resources to cater to a huge population that was left homeless and penniless.
Nestle then formed a company in India, thus becoming Nestle India in 1961 by setting up a
milk factory in Moga, Punjab catering to the government’s demand of establishing a milk
economy in the state.
From then to now, Nestle India has diversified its products from milk to chocolates to baby
foods to our lip-smacking Maggi! It has employed over lakhs of Indians and catered to the
health, taste and nutrition of the Indian consumers.
NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a large
number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with
products of global standards and is committed to long-term sustainable growth and shareholder
satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business
and expects the same in its relationships. This has earned it the trust and respect of every strata
of society that it comes in contact with and is acknowledged amongst India's 'Most Respected
Companies' and amongst the 'Top Wealth Creators of India'. The NESTLÉ Corporate Business
Principles are at the basis of Company’s culture, developed over 150 years, which reflects the
ideas of fairness, honesty and long-term thinking. Nestlé is the world’s largest food and
beverage company. NESTLÉ India have more than 2000 brands ranging from global icons to
local favourites, and are present in 191 countries around the world.

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History and establishment

NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.

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.

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Progress in Moga required the introduction of NESTLÉ's Agricultural Services to educate,

advise and help the farmer in a variety of aspects. 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.

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.

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.

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MISSION AND VISION

Nestlé is...
the world's leading nutrition, health and wellness company. Our mission of "Good Food, Good
Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of
food and beverage categories and eating occasions, from morning to night.

- Our vision and values:

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier
selling preferred products.

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Strategy

We focus our energy and resources where unlocking the power of food can make the greatest
positive impact on the lives of people and pets, the environment, and our shareholders and other
stakeholders. Products that are healthy for consumers and the planet make for good business.
That is why we take the following actions:

➢ Apply our expertise in nutrition, health and wellness - developed over more than 150
years - to help people, families and pets live happier, healthier lives.
➢ Bring distinctive, premium innovations to market fueled by creative exploration and
consumer insights, pioneering nutrition science and culinary excellence.
➢ Meet the needs of the modern consumer with healthy, delicious, convenient products
for conscious, time-constrained lifestyles.
➢ Offer more plant-based food and beverage options to be consumers' first choice as they
diversify their diets.
➢ Produce affordable, safe and high-quality nutrition for everyone, regardless of their
income level, taking advantage of our long-standing presence around the world.
➢ Strive to package and deliver our products in ways that are safe and protect the
environment.
➢ Commit to ambitious sustainability goals to advance the health of the planet, drive
societal progress and support sustainable, healthy food systems.
➢ Our long-term value creation model is based on the balanced pursuit of top- and bottom-
line growth as well as improved capital efficiency. We create value guided by three
strategic pillars:
• Growth through continuous innovation.
• Operational efficiency.
• Resource and capital allocation with discipline and clear priorities, including
through acquisitions and divestitures.

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Organizational structure
An organizational structure defines how job task are formally divided grouped and coordinated.
It's a matrix organizational structure in which the reporting relationship is setup as a matrix
rather than tradition hierarchy.
Employee has dual reporting relationship generally to both functional manager and product
manager.
Key Elements:
1. Work Specialization
2. Chain of command
3. Span of control
4. Centralization
5. Decentralization

MANAGEMENT COMMITTEE:

SR.NO. NAME DESIGNATION

01 Suresh Narayanan Chairman & Managing Director
02 David S. McDaniel Finance & Control and CFO
03 Matthias C Lohner Technical
04 Anurag Patnaik Human Resource
05 Ashish Pande Supply Chain
06 B. Murli Legal & Company Secretary
07 Chandan Mukherji Consumer Insights, Communications
08 Krishna Guha Roy ISIT/Nestlé Business Excellence
09 Mehernosh Malia Dairy
10 Rajat Jain Food
11 Ravi Ramchandran Sales
12 Rupali Rattan Confectionary
13 Sanjay Khajuria Corporate Affairs
14 Sunayan Mitra Beverages
15 Sushrut Nallulwar Nestle professional
16 Vineet Singh Nutrition

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Product and services

The Food Service business of Nestlé was created in 1976 and evolved to Nestlé Professional
in 2008, to partner with ever increasing Food Service operators in Out of Home segment.
Nestlé Professional is a globally managed business and a partner that delivers creative branded
Food & Beverage solutions enabling operators to innovate and delight their consumers.
Nestlé Professional food and beverage business offers branded solutions like MAGGI,
NESCAFE, NESCAFE Sunrise, Nestlé MILKMAID, Nestlé EVERYDAY, Nestlé NESTEA
to the commercial, institutional and Out of Home customers.

Nestle India Limited offers a diverse range of food and beverage products to customers in India.
Some of the company's popular products and services include:

• Maggi Noodles: A popular instant noodle brand that offers a variety of flavours and is
a favourite among children and adults alike.
• Nestle Cerelac: A nutritious infant food that is made with rice, wheat, and milk and is
available in different stages of a baby's growth.
• Nescafe Coffee: A popular instant coffee brand that offers a range of coffee blends and
is available in various formats like sachets, jars, and capsules.

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• KitKat: A popular chocolate wafer brand that is available in different sizes and flavours
and is enjoyed by people of all ages.
• Nestle Milkmaid: A sweetened condensed milk brand that is used to make various
desserts like ice cream, cakes, and puddings.
• Nestle EveryDay: A dairy whitener brand that is used to make tea and coffee and is
available in different pack sizes.
• Nestle Maggi Masala-ae-Magic: A range of spice blends that can be used to enhance
the taste of various dishes.
• Nestle Milkybar: A white chocolate brand that is loved by kids and is available in
different shapes and sizes.
• Nestle A+ Pro-Growth Milk: A milk product that is enriched with nutrients like iron,
zinc, and vitamins and is targeted towards children's growth and development.
• Nestle NAN Pro: A range of infant milk formula that is available in different stages of
a baby's growth and is designed to provide optimal nutrition.
• These are just some of the products and services offered by Nestle India Limited, and
the company continues to innovate and introduce new products to meet the changing
needs and preferences of customers.

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Major Competitors

01 Unilever

02 General Mills

03 Danone

04 Mars Incorporated

05 Kellogg’s

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Corporate social responsibility

Nestle since its very inception has been taking CSR initiatives that help in adding value to the
lives of the people where they operate. As a form of expressing gratitude for the trust and love
that they have received from the people of India, they have undertaken initiatives that would
benefit different sections of our society in several ways. Nestle has funded many projects in
India to improve access to water, taken sustainability measures, steps to enhance the livelihood
of street food vendors, fitness programmes amongst others.
Nestle India has to focus its CSR activities majorly on nutrition, water and sanitation, and rural
development. This, however, is not an exhaustive list and the Company keeps coming up with
innovative and situation-specific ideas.

The Company is a leading Nutrition, Health and Wellness Company. As a responsible

Company, it has since its inception, participated in business activities which help in improving
the quality of life for the communities where it operates. This also includes creating better
livelihood opportunities.
In consultation with stakeholders, the Company has decided to focus its activities on the
following areas, where it is in a position to create maximum value. These focus areas are:
• Nutrition: A large part of our population is impacted by the double burden of malnutrition.
Improving nutrition awareness of communities is a focus area.
• Water and Sanitation: India is among the world’s most water stressed regions. Additionally,
safe drinking water is a concern in many parts of the country. The Company would focus on
helping farmers reduce water usage in agriculture, raising awareness on Water conservation
and providing access to water and sanitation.
• Rural Development: Supporting the sustainable development of farmers will be the third
focus area.
• Livelihood: Unemployment is a major issue impacting development and health outcomes.
The Company would focus on livelihood enhancement through trainings.
• Education: The Company would focus on supporting education, with a special focus on
education for the girl child. The Company would encourage enhancement skill-set/ awareness
and support research/academic activities.
• Environment: The Company would focus on activities that have a positive impact on
environment. The Company will continue to engage with stakeholders including farmers,
experts, and the Government and would take up such other CSR activities in line with
Government’s intent and which are important for society.

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AWARDS AND RECONGINISATION

1. Nestle India won ‘Best Overall Excellence in CSR’ at the National CSR Leadership
Awards 2019.
2. Three awards won at Nielsen Breakthrough Innovation Awards for NESCAFE Ready-
to-Drink (Emerging Play), MAGGI Masalas of India and KIT KAT Strawberry Duo
(both Short Term Play).
3. NESCAFE bagged Effie, silver for its campaign ‘Badal Life Ki Raftar’.
4. NESCAFE won Gold at The Great Lifestyle Brands Awards.
5. MAGGI won at the 3rd edition of The Advertising Club’s MARQUEES Awards 2019
I the FMCG (Foods) category.

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Swot analysis
Here is a glance of some of the strengths, weakness, opportunities and threats of the Nestle
company.
We can get a clear picture of what is the SWOT analysis of Nestle company and how they use
it to make major strategic decisions. We will be taking a few examples here as well.

STRENGTH OF NESTLE
Nestle’s continuous presence over the years is attributable to numerous internal factors. These
factors form the strengths of the Nestle group, and here I will be taking you through what are
the strengths of Nestle briefly:

• Global Presence: Nestle’s active presence in 187 countries is advantageous to its

undivided growth. The presence in some countries is over 150 years, establishing the
brand in the local environment.
• Increasing Cash flows: Nestle cash flows increased by 10.9% to CHF 11.9 billion in
2019. This means that the group’s finances are healthy and they can invest more money
and can expand quickly.
• Strong Supply Chain operations: The nestle group encourages innovations at the local
levels, incorporates technology and is increasing the traceability of the sources of the
raw materials of its products.
• Fast Innovation: Application of science across all platforms and innovating through
collaboration with the local players allows Nestle to innovate faster and according to
local demands.
• Digital Transformation: Nestle’s investment in digital transformation across fields like
marketing, social media, e-commerce, manufacturing and supply chain has helped them
become data-driven.

WEAKNESSES OF NESTLE:

Nestle core competencies lie in its strengths, but the global giant also faces numerous internal
weaknesses. Here, we can easily understand what are the weaknesses of Nestle:

• Problems in product marketing: Nestle has time and again faced a massive backlash
from people across the globe for not correctly positioning and marketing their products.
One classic example is the marketing of breastfeeding baby formula to people in poorer
nations.
• Organizational Structure: Nestle’s current organizational structure is divided based on
its product portfolio and not based on its geographical operations.

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• High dependence on advertising: Nestle is majorly dependent on advertising to promote

its products; it increases the marketing costs and consequently, a high risk associated
with the returns.

OPPORTUNITIES OF NESTLE:

The dynamic environment is now more connected than ever. It provides numerous
opportunities for the group to thrive and grow. I have listed some of them for your
understanding:

• Increasing Transparency: The present consumer holds more information than ever.
With the growing presence on the internet, it will be favourable to increase
transparency. Increasing transparency would mean that consumer knows where the raw
materials are sourced from, when they are sourced and who sourced them.
• Sustainability: Integration and operating sustainably will help the group to reduce costs,
increase efficiency and utilize labour properly.
• Increasing disposable Income: Increase in the average household income in Asia,
Oceania and Sub-Saharan regions is an excellent opportunity for Nestle to expand its
operations.
• Diversifying its product portfolios: Nestle has a great opportunity in introducing
products into sectors other than food and beverages. Merging through strategic alliances
can help Nestle to diversify and tap into markets other than food and beverages.

THREATS TO NESTLE:

The same dynamic environment provides numerous threats owing to its ever-changing
environment. Frequent disruptions, emerging technology and continuous innovations drive the
changes. Nestle, to sustain has to focus on these parameters to grow continuously:

• Climate Impact: Changes in the climate and its subsequent impact can be seen on
numerous Nestle product’s raw materials. Raw materials like coffee, wheat and dairy
are affected by climate change.
• Strategic Investment choices: Investment choice’s failure to align with such a diverse
product run group is exceptionally high.
• Product Quality and Safety: Nestle, in the past, faced much negative effect on its
reputation and consumer trust after non-compliance of food safety.
• Rising Competition: Nestle’s product portfolio competes with various multi-national
players and numerous local players.

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Financial statement

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Findings

1. Nestle India ltd was incorporated in the year 1956.Its first production facility was set
up in the year 1961 at Moga in Punjab.

2. The company's head office is located in Gurgaon, Haryana.

3. The company is in good hand as its management is very strong with Suresh Narayanan
- Chairman & Managing Director.

4. Nestle India Ltd is moving ahead with a vision -To be a leading, competitive, Nutrition,
Health and Wellness Company delivering improved shareholder value by being a
preferred corporate citizen, preferred employer, preferred supplier selling preferred
products.

5. The company is acknowledged amongst India's 'Most respected companies' and

amongst the "Top wealth creators of India".

6. One of the major competitor of Nestle India ltd is Unilever. Nestle is a company
engaged in the manufacture, supply, and production of food and beverages , where as
Unilever is a company that produces and supplies consumer goods.

7. Its product portfolio includes dairy products, nutritional products, beverages, prepared
dishes and cooking aids, chocolates and confectionery. The company markets its
products under the EVERYDAY, NESCAFE, NESTEA, Maggi, KITKAT, Munch,
Milkmaid, Milkybar, and among others.

8. Nestle India held a strong position, with most of its product categories having more
than 50 percent of the market share in India. Nestle India is one of the largest FMCG
companies in India specializing in food, beverages, chocolate, and confectioneries.As
of April 2023 Nestlé India has a market cap of $23.52 Billion. This makes Nestlé India
the world's 730th most valuable company by market cap .

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conclusion
Nestle India Limited is a leading food and beverage company in India that offers a wide range
of products, including instant noodles, chocolates, coffee, milk products, and infant food. The
company has a strong presence in the Indian market and has been operating in the country for
over 100 years.

Nestle India Limited has been successful in maintaining its position as a market leader by
continuously innovating and expanding its product portfolio. The company has also focused
on building strong distribution networks and marketing strategies to reach out to customers in
both urban and rural areas.

However, Nestle India Limited has also faced challenges in the past, such as the Maggi noodles
controversy in 2015, which impacted the company's sales and brand image. The company has
since taken several steps to regain consumer trust, such as enhancing its quality control
measures and improving its communication with customers.

Overall, Nestle India Limited has a strong market position and a diverse product portfolio,
which gives it an edge in the competitive Indian market. The company's focus on innovation,
distribution, and marketing will likely continue to drive growth and success in the future.

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REFERENCES
1) https://www.nestle.in/
2) https://www.nestle.in/aboutus/allaboutnestl%C3%A9#:~:text=After%20India's%20in
dependence%20in%201947,to%20develop%20the%20milk%20economy.
3) https://www.slideshare.net/samyakjain60/nestle-organisational-structure
4) https://www.nestle-esar.com/aboutus/missionvision
5) https://www.nestle.in/investors/stockandfinancials/annualreports
6) https://blog.ipleaders.in/corporate-social-responsibility-initiatives-nestle/
7) https://www.nestle.in/sites/g/files/pydnoa451/files/2022-08/Corporate-Social-
Responsibility-Policy.pdf
8) https://companiesmarketcap.com/nestle-india/marketcap/
9) https://www.globaldata.com/company-profile/nestle-india-
ltd/#:~:text=Its%20product%20portfolio%20includes%20dairy,and%20Eclairs%20br
ands%2C%20among%20others.
10) https://craft.co/nestle/competitors
11) https://www.trinkerr.com/stocks/nestleind/about#:~:text=Nestle%20India%20won%2
0'Best%20Overall,(both%20Short%20Term%20Play)

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