FAST MOVING CONSUMER

GOODS(FMCG)
NESTLE, INDIA
 NESTLE, INDIA

• Full name: Nestle India Ltd.

• Status: Listed
• Legal Form: Public Limited Company
• Headquarters : Gurgaon; Haryana; India
• Main Activities: Sugar and Confectionery Product
Manufacturing | Dairy Product Manufacturing| Beverage
Manufacturing
• foods products such as Milk, beverages, chocolate,
confectionary and condiments
• Nestle's brands include :Nescafe, KitKat, Alpino, POLO, A+
Milk, Maggi Noodles, Bar One, Munch
• Honesty, integrity and fairness
• India's 'Most Respected Companies' and amongst the 'Top
Wealth Creators of India‘
• Partner in India's growth for over a century now
• Direct and Indirect employment
• Provides livelihood to about one million people including
farmers, suppliers of packaging materials, services and other
goods.
INCOME STATEMENT
 THE MAGGI CONTROVERSY

• FSSAI noted three major violations:

• 1. Presence of lead detected in the product in excess of the
maximum permissible levels of 2.5 ppm.
• 2. Release of a non-standardized food product in the market,
viz. “Maggi Oats Masala, Noodles with Tastemaker” without
risk assessment and grant of product approval.
• 3. Misleading labelling information on the package reading
“No added MSG”.
• Nestle India was on its way to continuous growth from 2012 to
2016. There was very low impact of demonetization and GST on
Nestle, but the Maggi Noodles controversy not only dented the
company’s image internationally but also gave the competitors
the chance to acquire the market share from Nestle.
• Financial year 2015 (Jan to Dec) proved to be a year worth
forgetting as due to the Maggi noodles their revenues decreased
and their involvement with the various law agencies resulted in
drastically less profits.
• recorded increased sales, revenues and profits in the subsequent
financial years.
 R&D costs
300000

250000

200000

R&D costs
150000

100000

50000

0
2015 2016 2017 2018 2019
 Total operating revenue
140,000,000.00

120,000,000.00

100,000,000.00

80,000,000.00
Total operating revenue

60,000,000.00

40,000,000.00

20,000,000.00

0.00
2015 2016 2017 2018 2019
 Operating profit (EBIT)
30,000,000.00

25,000,000.00

20,000,000.00

Operating profit (EBIT)

15,000,000.00

10,000,000.00

5,000,000.00

0.00
2015 2016 2017 2018 2019
 Profit after income tax
25,000,000.00

20,000,000.00

15,000,000.00
Profit after income tax

10,000,000.00

5,000,000.00

0.00
2015 2016 2017 2018 2019
 EXTERNALITIES

• GDP Growth: Growth of FMCG industry is consistent with the

Indian economy. It has grown over past 5 years which shows
good scope for this sector in near future.
• Inflation: Inflation in India has not affected the Indian FMCG
sector much.
• Consumer Income: Over the past years, there is an increased
economic growth resulting in increased consumer expenditure.
BALANCE SHEET
 Total assets
90,000,000.00

80,000,000.00

70,000,000.00

60,000,000.00

50,000,000.00 Total assets

40,000,000.00

30,000,000.00

20,000,000.00

10,000,000.00

0.00
2015 2016 2017 2018 2019
 Total equity and liabilities
80,000,000.00

70,000,000.00

60,000,000.00

50,000,000.00
Total equity and liabilities
40,000,000.00

30,000,000.00

20,000,000.00

10,000,000.00

0.00
2015 2016 2017 2018 2019