THE COMPANY

A subsidiary of Nestl S.A. of Switzerland. Nestl was founded in 1867 in Geneva, Switzerland by Henri Nestl. Nestl's relationship with India started 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards.

MISSION & VISION

MISSION Nestl is dedicated to providing the best food to people throughout the day, throughout their lives throughout the world. With our unique experience of anticipating consumer needs and creating solutions. Nestl contributes to your well being and enhances your quality of life . VISION Our Vision is to be the leading Food & Beverage companies in the world providing customers with healthy food at affordable prices.

CORE VALUES

A pre-requisite for dealing with people is respect and trust. Transparency and honesty in dealing with people are a sine qua non for efficient communication. This is complemented by open dialogue with the purpose of sharing competencies and boosting creativity. To communicate is not only to inform; it is also to listen and to engage in dialogue. The willingness to cooperate, to help others and to learn is a required basis for advancement and promotion within our company.

STRATEGIC BUSINESS UNITS (SBUS)

Milk Products & Nutrition

Chocolates & Confectiona ry

Nestl India

Beverages

Prepared Dishes & Cooking Aids

MILK PRODUCTS & NUTRITION

NESTL EVERYDAY Dairy Whitener Nestl CERELAC NESTL MILKMAID

NESTL NESLAC
NESTL Start Healthy Stay Healthy

NESTL EVERYDAY Ghee

NESTL Milk NESTL Slim Milk
Source:-TECHNO SHARES & STOCKS LTD, INDIA

BEVERAGES

NESCAF Classic NESCAF SUNRISE Premium NESCAF SUNRISE Special NESCAF CAPPUCCINO NESTEA ICed Tea With Green Tea NESTEA Iced Tea

NESTEA Instant Hot Tea Mixes

NESCAF 3 in 1
Source:-TECHNO SHARES & STOCKS LTD, INDIA

PREPARED DISHES & COOKING AIDS

MAGGI 2-MINUTE Noodles MAGGI Vegetable Atta Noodles MAGGI CUPPA MANIA MAGGI Healthy Soups MAGGI Masala-ae-Magic

MAGGI Sauces
MAGGI Pichkoo MAGGI Pizza Mazza
Source:-TECHNO SHARES & STOCKS LTD, INDIA

CHOCOLATES & CONFECTIONARY

Nestl Kit Kat

Nestl Munch
Nestl Milkybar Nestl Bar-one Nestl Milk Chocolate Polo Nestl Eclairs Nestl Milkybar Eclairs
Source:-TECHNO SHARES & STOCKS LTD INDIA RESEARCH

REVENUE FOR THE LAST FIVE YEARS

Dec 2010 Rs. 6297. 40 cr Dec 2009 Rs. 5162.46 cr Dec 2008 Rs.4389.64 cr Dec 2007 Rs.3593.21 cr Dec 2006 Rs.2847.91 cr

As per the market-wise position Nestl India stands first in instant noodles & ketchups, second in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category

source- www.moneycontrol.com

NESTLE INDIA: PRODUCT CATEGORY WISE SALES GROWTH 2001-2010

(In terms of % YoY change)

Milk Products and Nutrition

25.0 22.6 20.0 23.0 20.1 16.3 10.8 10.0 8.4 5.0 10.2 11.7 9.1 7.4 9.0 9.4 6.1 2.7 1.6 2004 2005 6.3 2.9 2006 2007 2008 2009 2010 11.7 10.1 19.2 30.0 40.0 35.0

Prepared Dishes and Cooking Aides

34.7

15.0

25.0 13.1 11.6

7.6 5.4 20.0 15.0 10.0 5.0 0.0 -5.0

26.7 25.5
19.3 16.9 16.3 9.9 8.5 20.0 19.2

30.6 24.8

30.1 26.9

29.2 24.4

21.7

5.4

1.3
0.0 -5.0 2002 2003 -2.1

3.8 2.7 1.0 0.5 -1.0 2002 2003 2004 2005

4.6 -0.7 2006 2007

3.5 2008

4.3

3.9 2010

2009

Beverages
25.0 20.0 15.0 10.0 5.0 2.3 0.0 2002 -5.0 -10.0 -13.0 -15.0 -10.0 2003 -6.5 -6.9 0.8 11.3 8.8 12.1 10.4 14.4 10.6 10.9 7.9 3.6 3.9 2007 0.4 0.0 -1.2 2008 2009 2010 -3.1 -1.6 -3.2 2004 2005 2006 -4.0 10.0 13.2 11.8 15.0 19.4 30.0 25.0

Chocolates and Confectionaries

26.4 24.8 21.9 20.0 18.1 11.3 11.0 4.7 5.0 3.2 0.0 2002 -5.0 4.3 2.9 -0.3 2003 2004 2.3 -0.3 2005 2006 2007 2008 9.9 6.1 18.5 15.8 17.6 19.5 13.6 12.4 9.7 6.3 3.5 2009 4.3 21.2

-9.2

2010

-6.3

In terms of % YoY change

Volatility in Raw Material Prices

Cocoa Based Raw Materials

100.0 87.6 80.0 60.0 40.0 20.0 10.8 0.0 -20.0 -40.0 45.8 41.8 18.6 -2.0 50.0 40.0

Green Coffee
45.8 37.9 27.6 18.1 14.4 10.0

30.0
20.0

10.2
0.7 4.7 5.7

11.4
7.8

20.1

11.2
4.2

0.0 -10.0

-6.5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -10.1 -17.0 -22.2 -18.5 -28.8 -4.8

5.8 -1.6 -2.3 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -14.6 -6.4 -17.1 -9.4 -4.6

2.5

-20.0 -30.0

Apple Concentrate
400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 5.9 0.0 -50.0 -100.0 -14.6 -8.7 13.4 12.4 15.9 Unit Growth Amount Growth 346.7

55.7

-0.5 17.8 5.1 -2.9 8.5 -0.4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -8.5 -15.0 -75.6

16.1

MILK PRODUCTS & CHOCOLATE-CONFECTIONARY (RB)

Resourc es

Strength : Major global player in these segments. Weakness : Consumer buying behaviour eg: Nestle Dahi Wide spread network of dealers and good supply chain in place

Capabilit y

Compet itive Adv

Industry Attractiv eness

Nestle is a well established name in the Indian market Good purchasing capacity. Prospects of deep penetration in rural areas Introduction of products which cater to the local tastes

Strategy Followed

Returns

Earning per share : 84.91 Rs (Q2-2011)

PREPARED DISHES & BEVERAGES (I/O)

External Environ ment Industry Attractiv eness

Companies like Pepsi & Coca-Cola were present in the Indian beverages market Local brands were offering ready to eat meals Growing purchasing capacity Reduction in the time spent on cooking food

Strateg Introduction of products which cater to the local tastes & preferences y Formul ated

Well established brand Maggi Assets & Products were introduced centered around this brand.
Skills Strategy

Imple mentat ion

Returns

Beverages : Nescafe, Nestea ,Nescafe Instant Mix, Nescafe Outlets Veg atta noodles,Pizza ,Coconut Milk Powder,Chicken Cubes,Veg cubes

Earning per share : 84.91 Rs (Q2-2011)

BCG MATRIX
PRODUCT MARKET SHARE[%]
85 15 37 42 48 9 2 3 55

MARKET GROWTH[%]
18 20 11 20 12 15 15 15 8

MAJOR COMPETITOR[ %]
Horlicks-4.5% Knorr soup-65% Kissan -29 ITC Sunfeast-40 HUL Bru-51 Perk -7 Dairy milk-35 5 star - 14 Amul Mithaimate40 Amul masti dahi- 65 Amul ghee-20 Farex from Heinz-15

MARKET SIZE

Maggi noodles Maggi soup Maggi ketchup Maggi Pasta Nescafe sunrise Kitkat Milky bar Bar one Milkmaid

1300 cr 100 cr 220 cr 40 cr 2000 cr 4000 cr 4000 cr 4000 cr 150 cr

Dahi
Ghee Cerelac ( & Nestum)

30
6 80

20
5 10

360 cr
---1500 cr

20 %
H M a r k e t G r o w t h

Noodle s

Past a
Kitkat

Dahi

Soup

i g h
Ketchup 10 % L o w Nescafe

Bar one

Milky bar

Cerela c

Milkmaid

Ghee

0 %

20x
0

10x High

5x

1x
Low

0.5x

Relative Market Share