Description
This is a documentation is about company analysis of Nestle india ltd.
NESTLE INDIA LTD.
Nestle – Good Food, Good Life The motto of this company says it all. Nestle has been the world leader in nutrition, health and wellness. It is the most successful company in terms of dairy products.it has a strong hold in the market in milk and milk products category, food products, beverages, nutritional products, etc. Nestle was founded by Henri Nestle in Switzerland in 1866. The headquarters of Nestle is in Vevey, Switzerland since then. It has factories and operations in almost every country in the world. It also serves to the needs of all age groups ranging from infants to elders. The 1st ever European Condensed milk factory was opened in Switzerland by the AngloSwiss condensed milk Company. A year later, Henri Nestle launched the world’s 1st prepared infant cereals ‘Farine lacte’ in Vevey, Switzerland. These two companies merged in 1905 to become NESTLE. Nestle has over 3, 30,000 employees in around 150 countries across the globe. They have around 461 factories in 83 countries. This unmatched geographic presence is one of Nestlé’s most competitive advantages. Nestle aims at creating a close relationship with their customers. It has impressively understood the local needs and trends of the countries they operate in.
NESTLE INDIA: Nestle India is a subsidiary of Nestle, Switzerland. It has its Indian head office in Gurgaon, Haryana. It has a total of 7 factories all over India. Nestle India has been successfully providing its consumers in India with products of global standards. It is counted amongst India’s ‘Most Respected Companies’ and also amongst the ‘Top Wealth Creators of India’. Nestle came to the Indian markets in 1912 when it began importing and selling finished products here. It set up its 1st factory in India in 1961 in Punjab. Here it aimed at developing the milk economy. Nestle’s agricultural services were started to educate, advise and help farmers. Nestle played a very important role in the development of India’s dairy industry. The company provides major employment facilities for the farmers, suppliers, etc. Nestle India has provided the country with international quality products such as Nescafe, Maggi, Milkmaid, Nestea, chocolates (Milkybar, Kit Kat, Bar One, etc.)
Recently Nestle also announced the establishment of the 1st R&D centre in India as a part of the global R&D network. This aims at contributing towards the reducing nutritional deficiencies in the country. With all the initiatives taken by Nestle to lay a strong base in India, there is no doubt about why the company has been the most loved brand for products for all age groups.
INDUSTRY ANALYSIS:
a) Industry Trends: 1. Indian Perspective: ? ? ? In India, the dairy industry plays an important role in the country’s social and economic development. It constitutes an important segment of the rural economy. Dairy industry provides employment to millions of homes in rural areas, ensuring supply of quality milk and milk products to people in both urban and rural areas. To cater to the country’s increasing demand for milk and milk products, the industry has been growing rapidly. India is the world’s largest milk producer, accounting for around 17% of the global milk production. It is also one of the largest producers as well as consumers of dairy products. Improved genetic material achieved through cross breeding of cattle and upgrading of the national buffalo herd has played an outstanding role in increasing the milk productivity. Rich nutritional qualities, made the consumption of dairy products to burgeon in the country, and considering this it is anticipated that the production of milk in India will grow at a compounded annual growth rate (CAGR) of around 4% during 2011-2015. With the rising use of dairy products, the secondary market (like tea, coffee, infant nutrition, malted foods, and bakery products etc.) for dairy products has also been flourishing.
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2. Global Perspective: ? ? Incomes in new and emerging markets are increasing and dairy is becoming more affordable for consumers. People throughout Asia are increasingly adopting western diets and tastes which includes an appetite for dairy.
? ? ?
? ?
Consumers are becoming more aware of health and nutrition. People are increasingly looking for food that is both easy to prepare and good for health. The dairy industry is constantly coming up with new products, providing customers with the benefits found in dairy. But the global dairy industry has become highly volatile over the past few years, with fluctuating prices. The situation is predicted to remain the same in the next few years, posing a challenge to the global industry. One of the main reasons for such volatility is the reduced annual milk production for trade between the countries. Hence, even a small change in the supply-demand situation would cause fluctuations in the global dairy commodity prices.
b) PEST Analysis: 1. Political Factors: ? One of the initial initiatives taken by the Government for the development of dairy farming the start of the White Revolution called The Operational Flood (OF) programme launched in 1970. It was implemented with the help and support of World Bank and Food Aid from European Economic Community (EEC). The Indian government is also taking several other initiatives and is implementing several plans like the National Dairy Plan, Intensive Dairy development Program in order to meet the demands in the country. Development projects like National Bank for Agriculture and Rural Development (NABARD) provide refinance facilities to dairy farmers who take loans from banks. But in international trade, a number of non-tariff trade barriers (NTBs) are applied. Because of this, the developing countries are deprieved of sharing the markets with the developed countries.
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2. Economic factors: ? ? ? ? Dairy industry is an important source of secondary income for many rural families. It plays a very important role in providing employment and income to the farmers. Milk being a leading agricultural produce, Dairy industry contributes about 5.3% to India’s GDP. But there are many small scale dairy farms specially in India and Pakistan that are not able to cover their full economic costs but generate only family farm income due to low cash costs.
3. Social Factors: ? ? ? ? ? Milk and milk products are considered to be very healthy. With the increasing population in the world, dairy industry is in more and more demand. Milk is the healthiest diet for pregnant women and infants. Also many health conscious people prefer drinking milk as it gives the body the required calcium and protein intake. In today’s world, all the kids and youngsters are fond of junk food. Milk products like cheese, mayonnaise, etc. form an integral part of their meal and also are considered healthy.
4. Technological Factors: ? ? ? There is a need for new technological inventions in dairy industry in order to meet the requirements of the growing population. Technologies such as artificial insemination, cow breeding, etc. are used by the farmers to increase the supply of milk. Also advanced technologies are required for the packaging and storage of these products as they have a very short shelf life. Tetrapak packaging is an example of the new technologies used for the same. Proper care needs to be taken while using all these technologies as the products are perishable. Cold storage facilities are also required for the transportation of these products because of the lesser shelf life.
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c) Competitor Analysis: 1. Competitors of Nestle: ? Nestle has been one of the leading brands in dairy products sector. Its products are not only perfect in their quality but also match international standards. There are many other companies that fall under the same industry and pose a stiff competition to Nestle. Some of them are listed below: I. Amul II. Britannia III. Kwality Dairy IV. GlaxoSmith
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It is observed that Nestle amongst all the brands that fall under the dairy industry, Nestle leads the market. The stock prices of Nestle as compared to any of its competitors are very high. Name Last Market Sales Net Total Price Cap Turnover Profit Assets Nestle 4514.85 43530.25 7514.46 961.55 2244.83 GlaxoSmith 2663.30 11200.65 2770.68 355.21 1144.17 Britannia 497.70 5945.07 4974.19 186.74 548.19 Also the demand for Nestle products all over the world exceeds the demand for any other brand in the same industry. Nestle’s top competitors in India also includes Amul. Amul is one of the leading brands in India in the dairy sector. It stands for a stiff competition for Nestle in products such as dahi, milk, ice creams, etc. Pricing: I. The prices of Nestle are on the same lines of its competitors. For eg: the price of dahi for Nestle and Amul both lies within Rs. 15 – 20 for 200 gms. II. Also the prices of the other products like milk, ice cream, cheese, etc. are very affordable and at par with the prices of the other brands. Quality: I. The product quality of Nestle matches international standards. II. It is the most preferred choice especially for kids in their growing age. The milk quality and purity is trusted globally by all mothers for their infants as well. Nestle has a wide distribution and collection network across the country. It also has operations specially designed according to the needs of the individual countries. Also the initiatives taken by Nestle for the development of dairy farming can be compared only to that of Amul.
? ? ? ? ?
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? ? ?
d) SWOT Analysis: 1. Strengths: ? The vast livestock population of the country proves to be an important asset for the country and unlike other natural resources; a livestock production system will continue to push forward Indian economy. ? As the milk productivity of animals in India is low, there is a huge scope of improvement of the milk production and consequently increased market surplus of milk for processing. ? Purchasing power of the consumer is growing due to the growth in the economy and the burgeoning population of India. ? Milk consumption in India is daily part of the dietary programme irrespective of the region and hence demand is predicted to increase gradually. ? Dairy industry is continuously growing and the margins are reasonable. ? Large number of dairy companies (678 as on March 31, 2004) in public and cooperative sectors besides various others in the private sector is coming up. ? Highly trained and qualified technical manpower is available to support R&D as well as industry operations. 2. Weaknesses: ? Though cross breeding programmes have improved animal productivity, milk production in many parts of the country is still dominated by low yielding animals. Poor condition of roads and un-predicted power supply remain a major challenge for storage and supply of good quality milk. Maintenance of cold chain is still a major challenge. For organized marketing of milk, the milk is required to be transported to nearby storage plant which incurs cold storage and transportation costs that are quite high. Majority of producers is not aware about scientific dairy farming, clean milk production etc. Seasonal imbalance in milk production pattern, regional fluctuation of milk supply and variation (buffalo, cow, goat etc.) in milk quality received by milk plants continue to pose serious problem.
? ?
? ?
3. Opportunities: ? ? Expanding the dairy market will result in creation of number of job and self-employment opportunities. Economy is growing at the rate of closely to 8% of GDP. Therefore, the investment opportunities in this industry are also increasing gradually. Demand for dairy products is income based. Continued rise in middle class population will see an increase in the consumption pattern. There is a greatly improved export potential for milk products.
? ?
4. Threats: ? ? ? Excessive grazing pressure on marginal and small community lands has resulted in degradation of land. Indiscriminate crossbreeding for raising milk productivity could lead to disappearance of valuable breeds. Organized dairy industry manages only 15% of the milk produced. Cost effective technologies, mechanization, and quality control measures are very rarely exercised in unorganized sector and remain critical issues to be addressed. There is a lack of awareness among farmers about the quality, including microbiological and chemical contaminants as well as residual antibiotics. Middlemen still dominates a very large proportion of the milk storage. Export of quality ingredients is making the domestic producers rely on low energy fodders.
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COMPANY ANALYSIS:
As mentioned earlier, Nestle is a leading brand in Nutrition, Health and Wellness. It has a vast list of brands under its name. They are as follows: 1. Milk Products: Nestle’s Milkmaid had gained popularity soon after its launch. And the newly introduced Milkmaid Creations are also gaining popularity. Its various products like Nestle a+ milk, slim dahi, slim milk, real fruit yoghurts, etc. are very popular amongst health conscious people. 2. Nutrition products: Nestle specialises in infant nutrition products. It follows the guidelines specified by The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992. 3. Beverages: Nestle has a variety of beverages for coffee lovers. Its wide range of coffees includes Nescafe Classic, Nescafe Cappuccino, Nescafe Sunrise Premium, etc. it also includes Nestea (Iced tea). 4. Easy to make dishes and cooking enhancers: Nestle gives a variety of options for its kiddie consumers like Maggi 2 minute noodles, dumdaar noodles, maggi pazzta , etc. It also provides cooking enhancers such as Maggi magic cubes, maggi bhuna masal, etc. 5. Chocolates: Nestle is very famous for its milk chocolates and its variants. Kit Kat, Bar one, milkybar, etc. are some of its famous chocolates. It also provides assorted gift packs for special occasions. Nestle also started the Start Healthy Stay Healthy initiative for pregnant women and new moms. It was specially designed to educate pregnant women and new moms about the challenges that they face in that period. It focusses at nurturing a happier and healthier next generation. Everything about Nestle: Nestle was started in 1866 by Henri Nestle. It was basically a merger of two companies namely European Condensed milk factory started by the Anglo-Swiss condensed milk Company and Henri Nestle’s Prepared infant cereals ‘Farine lacte’. Its head quarter is based in Vevey, Switzerland. Nestle has over 330000 employees all over the world. Antonio Helio Waszyk is the Chairman and Managing Director of Nestle.
Nestle India came into existence in 1912. Its India head office is in Gurgaon, Haryana. Nestlé has been a partner in India's growth for over nine decades 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. Nestle is a listed company in the BSE under the Food Processing industry. According to the official press release by Nestle, its net sales for the 1st quarter of 2012 are 2047.5 Crores. And its net profit is 275.7 Crores up from 255 crores in the same period in 2011. It shows a domestic sales growth of 13.7%.
SWOT analysis of Nestle India: 1. STRENGTHS: ? ? ? ? ? Nestle provides the best quality products that match international standards. It is ranked as the world's largest bottled water company and has set up facilities to operate water resources in a responsible manner. Nestlé was named one of "America's Most Admired Food Companies" in Fortune magazine for the twelfth consecutive year in 2008. It has a very strong support from its headquarters in Switzerland. It also imports products and brands from its highly successful headquarters. The brands like Maggi, Nescafe, Cerelac are the most sought after brands in their own categories. Since these brands are meant for toddlers, youth and elders; Nestle has a huge customer base. Nestle has always been innovative with its products and brands for the Indian market. This has left a mark on the minds of its customers and thus has helped Nestle to remain successful all these years.
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2.
WEAKNESSES: ? ? Nestle lacks in Supply Chain Management. Also the complexity of Indian markets adds to its voes. Owning to the short shelf life of most of its products, transportation is the biggest hurdle. Lack of proper transport facilities in India sometimes poses a problem to the company.
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The company’s exports comprises majorly Nescafe exported to Russia. Owning to the volatile markets in Russia, the exports of Nestle has faced a setback.
3. OPPORTUNITIES: ? Today’s world is completely health conscious. Nestle can make use of this and launch more health products. Being the leader in their sector, their new health products will be surely successful. The company can expand to the smaller towns in India. They can explore these parts of the country and can increase their presence in India. Manufacturing of some of Nestle’s products is cheaper in India than in other countries where it has its manufacturing units. This could make India as a export hub for many of the Nestle products. Today’s youth enjoy going to Cafes and spend a lot of their time there. Owning to this emerging trend, Nestle has opened Nestle Cafes in some cities where its own products are featured.
? ?
?
4. THREATS: ? ? ? ? Nestle faces strong competition from many of its competitors. Recently the Government of India has reduced the import duty of food segments. This will add to the existing competition faced by Nestle. Observing the recent trends consumers spend less on FMCG products. The growth of the FMCG sector is not as expected in the last few years. The increasing fuel prices will add to the transportation costs of the company. Also the increasing prices of packaging and manufacturing will add to the burden. The company may have to burden its consumers with increased costs of its products because of this.
Even though the company might face a tough time solving these problems, Nestle still has a very strong hold in the Indian market. Its consumer base is increasing day by day and with the new products frequently launched by Nestle, the company is bound to keep up to its standards and stay at the top position.
doc_829316558.docx
This is a documentation is about company analysis of Nestle india ltd.
NESTLE INDIA LTD.
Nestle – Good Food, Good Life The motto of this company says it all. Nestle has been the world leader in nutrition, health and wellness. It is the most successful company in terms of dairy products.it has a strong hold in the market in milk and milk products category, food products, beverages, nutritional products, etc. Nestle was founded by Henri Nestle in Switzerland in 1866. The headquarters of Nestle is in Vevey, Switzerland since then. It has factories and operations in almost every country in the world. It also serves to the needs of all age groups ranging from infants to elders. The 1st ever European Condensed milk factory was opened in Switzerland by the AngloSwiss condensed milk Company. A year later, Henri Nestle launched the world’s 1st prepared infant cereals ‘Farine lacte’ in Vevey, Switzerland. These two companies merged in 1905 to become NESTLE. Nestle has over 3, 30,000 employees in around 150 countries across the globe. They have around 461 factories in 83 countries. This unmatched geographic presence is one of Nestlé’s most competitive advantages. Nestle aims at creating a close relationship with their customers. It has impressively understood the local needs and trends of the countries they operate in.
NESTLE INDIA: Nestle India is a subsidiary of Nestle, Switzerland. It has its Indian head office in Gurgaon, Haryana. It has a total of 7 factories all over India. Nestle India has been successfully providing its consumers in India with products of global standards. It is counted amongst India’s ‘Most Respected Companies’ and also amongst the ‘Top Wealth Creators of India’. Nestle came to the Indian markets in 1912 when it began importing and selling finished products here. It set up its 1st factory in India in 1961 in Punjab. Here it aimed at developing the milk economy. Nestle’s agricultural services were started to educate, advise and help farmers. Nestle played a very important role in the development of India’s dairy industry. The company provides major employment facilities for the farmers, suppliers, etc. Nestle India has provided the country with international quality products such as Nescafe, Maggi, Milkmaid, Nestea, chocolates (Milkybar, Kit Kat, Bar One, etc.)
Recently Nestle also announced the establishment of the 1st R&D centre in India as a part of the global R&D network. This aims at contributing towards the reducing nutritional deficiencies in the country. With all the initiatives taken by Nestle to lay a strong base in India, there is no doubt about why the company has been the most loved brand for products for all age groups.
INDUSTRY ANALYSIS:
a) Industry Trends: 1. Indian Perspective: ? ? ? In India, the dairy industry plays an important role in the country’s social and economic development. It constitutes an important segment of the rural economy. Dairy industry provides employment to millions of homes in rural areas, ensuring supply of quality milk and milk products to people in both urban and rural areas. To cater to the country’s increasing demand for milk and milk products, the industry has been growing rapidly. India is the world’s largest milk producer, accounting for around 17% of the global milk production. It is also one of the largest producers as well as consumers of dairy products. Improved genetic material achieved through cross breeding of cattle and upgrading of the national buffalo herd has played an outstanding role in increasing the milk productivity. Rich nutritional qualities, made the consumption of dairy products to burgeon in the country, and considering this it is anticipated that the production of milk in India will grow at a compounded annual growth rate (CAGR) of around 4% during 2011-2015. With the rising use of dairy products, the secondary market (like tea, coffee, infant nutrition, malted foods, and bakery products etc.) for dairy products has also been flourishing.
? ?
?
?
?
2. Global Perspective: ? ? Incomes in new and emerging markets are increasing and dairy is becoming more affordable for consumers. People throughout Asia are increasingly adopting western diets and tastes which includes an appetite for dairy.
? ? ?
? ?
Consumers are becoming more aware of health and nutrition. People are increasingly looking for food that is both easy to prepare and good for health. The dairy industry is constantly coming up with new products, providing customers with the benefits found in dairy. But the global dairy industry has become highly volatile over the past few years, with fluctuating prices. The situation is predicted to remain the same in the next few years, posing a challenge to the global industry. One of the main reasons for such volatility is the reduced annual milk production for trade between the countries. Hence, even a small change in the supply-demand situation would cause fluctuations in the global dairy commodity prices.
b) PEST Analysis: 1. Political Factors: ? One of the initial initiatives taken by the Government for the development of dairy farming the start of the White Revolution called The Operational Flood (OF) programme launched in 1970. It was implemented with the help and support of World Bank and Food Aid from European Economic Community (EEC). The Indian government is also taking several other initiatives and is implementing several plans like the National Dairy Plan, Intensive Dairy development Program in order to meet the demands in the country. Development projects like National Bank for Agriculture and Rural Development (NABARD) provide refinance facilities to dairy farmers who take loans from banks. But in international trade, a number of non-tariff trade barriers (NTBs) are applied. Because of this, the developing countries are deprieved of sharing the markets with the developed countries.
?
?
?
2. Economic factors: ? ? ? ? Dairy industry is an important source of secondary income for many rural families. It plays a very important role in providing employment and income to the farmers. Milk being a leading agricultural produce, Dairy industry contributes about 5.3% to India’s GDP. But there are many small scale dairy farms specially in India and Pakistan that are not able to cover their full economic costs but generate only family farm income due to low cash costs.
3. Social Factors: ? ? ? ? ? Milk and milk products are considered to be very healthy. With the increasing population in the world, dairy industry is in more and more demand. Milk is the healthiest diet for pregnant women and infants. Also many health conscious people prefer drinking milk as it gives the body the required calcium and protein intake. In today’s world, all the kids and youngsters are fond of junk food. Milk products like cheese, mayonnaise, etc. form an integral part of their meal and also are considered healthy.
4. Technological Factors: ? ? ? There is a need for new technological inventions in dairy industry in order to meet the requirements of the growing population. Technologies such as artificial insemination, cow breeding, etc. are used by the farmers to increase the supply of milk. Also advanced technologies are required for the packaging and storage of these products as they have a very short shelf life. Tetrapak packaging is an example of the new technologies used for the same. Proper care needs to be taken while using all these technologies as the products are perishable. Cold storage facilities are also required for the transportation of these products because of the lesser shelf life.
? ?
c) Competitor Analysis: 1. Competitors of Nestle: ? Nestle has been one of the leading brands in dairy products sector. Its products are not only perfect in their quality but also match international standards. There are many other companies that fall under the same industry and pose a stiff competition to Nestle. Some of them are listed below: I. Amul II. Britannia III. Kwality Dairy IV. GlaxoSmith
? ?
? ?
It is observed that Nestle amongst all the brands that fall under the dairy industry, Nestle leads the market. The stock prices of Nestle as compared to any of its competitors are very high. Name Last Market Sales Net Total Price Cap Turnover Profit Assets Nestle 4514.85 43530.25 7514.46 961.55 2244.83 GlaxoSmith 2663.30 11200.65 2770.68 355.21 1144.17 Britannia 497.70 5945.07 4974.19 186.74 548.19 Also the demand for Nestle products all over the world exceeds the demand for any other brand in the same industry. Nestle’s top competitors in India also includes Amul. Amul is one of the leading brands in India in the dairy sector. It stands for a stiff competition for Nestle in products such as dahi, milk, ice creams, etc. Pricing: I. The prices of Nestle are on the same lines of its competitors. For eg: the price of dahi for Nestle and Amul both lies within Rs. 15 – 20 for 200 gms. II. Also the prices of the other products like milk, ice cream, cheese, etc. are very affordable and at par with the prices of the other brands. Quality: I. The product quality of Nestle matches international standards. II. It is the most preferred choice especially for kids in their growing age. The milk quality and purity is trusted globally by all mothers for their infants as well. Nestle has a wide distribution and collection network across the country. It also has operations specially designed according to the needs of the individual countries. Also the initiatives taken by Nestle for the development of dairy farming can be compared only to that of Amul.
? ? ? ? ?
?
? ? ?
d) SWOT Analysis: 1. Strengths: ? The vast livestock population of the country proves to be an important asset for the country and unlike other natural resources; a livestock production system will continue to push forward Indian economy. ? As the milk productivity of animals in India is low, there is a huge scope of improvement of the milk production and consequently increased market surplus of milk for processing. ? Purchasing power of the consumer is growing due to the growth in the economy and the burgeoning population of India. ? Milk consumption in India is daily part of the dietary programme irrespective of the region and hence demand is predicted to increase gradually. ? Dairy industry is continuously growing and the margins are reasonable. ? Large number of dairy companies (678 as on March 31, 2004) in public and cooperative sectors besides various others in the private sector is coming up. ? Highly trained and qualified technical manpower is available to support R&D as well as industry operations. 2. Weaknesses: ? Though cross breeding programmes have improved animal productivity, milk production in many parts of the country is still dominated by low yielding animals. Poor condition of roads and un-predicted power supply remain a major challenge for storage and supply of good quality milk. Maintenance of cold chain is still a major challenge. For organized marketing of milk, the milk is required to be transported to nearby storage plant which incurs cold storage and transportation costs that are quite high. Majority of producers is not aware about scientific dairy farming, clean milk production etc. Seasonal imbalance in milk production pattern, regional fluctuation of milk supply and variation (buffalo, cow, goat etc.) in milk quality received by milk plants continue to pose serious problem.
? ?
? ?
3. Opportunities: ? ? Expanding the dairy market will result in creation of number of job and self-employment opportunities. Economy is growing at the rate of closely to 8% of GDP. Therefore, the investment opportunities in this industry are also increasing gradually. Demand for dairy products is income based. Continued rise in middle class population will see an increase in the consumption pattern. There is a greatly improved export potential for milk products.
? ?
4. Threats: ? ? ? Excessive grazing pressure on marginal and small community lands has resulted in degradation of land. Indiscriminate crossbreeding for raising milk productivity could lead to disappearance of valuable breeds. Organized dairy industry manages only 15% of the milk produced. Cost effective technologies, mechanization, and quality control measures are very rarely exercised in unorganized sector and remain critical issues to be addressed. There is a lack of awareness among farmers about the quality, including microbiological and chemical contaminants as well as residual antibiotics. Middlemen still dominates a very large proportion of the milk storage. Export of quality ingredients is making the domestic producers rely on low energy fodders.
?
? ?
COMPANY ANALYSIS:
As mentioned earlier, Nestle is a leading brand in Nutrition, Health and Wellness. It has a vast list of brands under its name. They are as follows: 1. Milk Products: Nestle’s Milkmaid had gained popularity soon after its launch. And the newly introduced Milkmaid Creations are also gaining popularity. Its various products like Nestle a+ milk, slim dahi, slim milk, real fruit yoghurts, etc. are very popular amongst health conscious people. 2. Nutrition products: Nestle specialises in infant nutrition products. It follows the guidelines specified by The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992. 3. Beverages: Nestle has a variety of beverages for coffee lovers. Its wide range of coffees includes Nescafe Classic, Nescafe Cappuccino, Nescafe Sunrise Premium, etc. it also includes Nestea (Iced tea). 4. Easy to make dishes and cooking enhancers: Nestle gives a variety of options for its kiddie consumers like Maggi 2 minute noodles, dumdaar noodles, maggi pazzta , etc. It also provides cooking enhancers such as Maggi magic cubes, maggi bhuna masal, etc. 5. Chocolates: Nestle is very famous for its milk chocolates and its variants. Kit Kat, Bar one, milkybar, etc. are some of its famous chocolates. It also provides assorted gift packs for special occasions. Nestle also started the Start Healthy Stay Healthy initiative for pregnant women and new moms. It was specially designed to educate pregnant women and new moms about the challenges that they face in that period. It focusses at nurturing a happier and healthier next generation. Everything about Nestle: Nestle was started in 1866 by Henri Nestle. It was basically a merger of two companies namely European Condensed milk factory started by the Anglo-Swiss condensed milk Company and Henri Nestle’s Prepared infant cereals ‘Farine lacte’. Its head quarter is based in Vevey, Switzerland. Nestle has over 330000 employees all over the world. Antonio Helio Waszyk is the Chairman and Managing Director of Nestle.
Nestle India came into existence in 1912. Its India head office is in Gurgaon, Haryana. Nestlé has been a partner in India's growth for over nine decades 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. Nestle is a listed company in the BSE under the Food Processing industry. According to the official press release by Nestle, its net sales for the 1st quarter of 2012 are 2047.5 Crores. And its net profit is 275.7 Crores up from 255 crores in the same period in 2011. It shows a domestic sales growth of 13.7%.
SWOT analysis of Nestle India: 1. STRENGTHS: ? ? ? ? ? Nestle provides the best quality products that match international standards. It is ranked as the world's largest bottled water company and has set up facilities to operate water resources in a responsible manner. Nestlé was named one of "America's Most Admired Food Companies" in Fortune magazine for the twelfth consecutive year in 2008. It has a very strong support from its headquarters in Switzerland. It also imports products and brands from its highly successful headquarters. The brands like Maggi, Nescafe, Cerelac are the most sought after brands in their own categories. Since these brands are meant for toddlers, youth and elders; Nestle has a huge customer base. Nestle has always been innovative with its products and brands for the Indian market. This has left a mark on the minds of its customers and thus has helped Nestle to remain successful all these years.
?
2.
WEAKNESSES: ? ? Nestle lacks in Supply Chain Management. Also the complexity of Indian markets adds to its voes. Owning to the short shelf life of most of its products, transportation is the biggest hurdle. Lack of proper transport facilities in India sometimes poses a problem to the company.
?
The company’s exports comprises majorly Nescafe exported to Russia. Owning to the volatile markets in Russia, the exports of Nestle has faced a setback.
3. OPPORTUNITIES: ? Today’s world is completely health conscious. Nestle can make use of this and launch more health products. Being the leader in their sector, their new health products will be surely successful. The company can expand to the smaller towns in India. They can explore these parts of the country and can increase their presence in India. Manufacturing of some of Nestle’s products is cheaper in India than in other countries where it has its manufacturing units. This could make India as a export hub for many of the Nestle products. Today’s youth enjoy going to Cafes and spend a lot of their time there. Owning to this emerging trend, Nestle has opened Nestle Cafes in some cities where its own products are featured.
? ?
?
4. THREATS: ? ? ? ? Nestle faces strong competition from many of its competitors. Recently the Government of India has reduced the import duty of food segments. This will add to the existing competition faced by Nestle. Observing the recent trends consumers spend less on FMCG products. The growth of the FMCG sector is not as expected in the last few years. The increasing fuel prices will add to the transportation costs of the company. Also the increasing prices of packaging and manufacturing will add to the burden. The company may have to burden its consumers with increased costs of its products because of this.
Even though the company might face a tough time solving these problems, Nestle still has a very strong hold in the Indian market. Its consumer base is increasing day by day and with the new products frequently launched by Nestle, the company is bound to keep up to its standards and stay at the top position.
doc_829316558.docx