ASIM MALIK Pom Project on nestle

8/9/2019 ASIM MALIK Pom Project on nestle

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PROJECT REPORT

COMPANY:

NESTLE FACTORY, KABIRWALA


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TABLE OF CONTENTS

1. Introduction

2. MDs Message

3. Vision & Strategy

4. Corporate & Legal View

5. Globe

6. Marketing & Sales

7. Human Resources

8. Factories of Nestle

9. Inauguration of Kabirwala Factory10. Supply Chain

11. Agri Services

12. Milk Collection

13. The Nestle Miracle

14. Milk Collection System

15. Helping the Farmers

16. A Quiet Revolution17. Nestle Brands

18. Quality Assurance

19. Corporate Social Responsibility

20. Creating Shared Value

21. Environment

22. Health

23. Society

24. Commitment to Good Living

25. Heart of Nestle

26. Earth-Quake Relief

27. Getting Connected

28. Consumer Services

29. Financial Data30. References


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Nestl has been serving Pakistani consumers since 1988, when our parentcompany, the Switzerland-based Nestl SA, first acquired a share in MilkpakLtd.Today we are fully integrated in Pakistani life, and are recognised as producersof safe, nutritious and tasty food, and leaders in developing and uplifting thecommunities in which we operate.We at Nestl Pakistan ensure that our products are made available to consumerswherever in the country they might be. Convenience is at the heart of the Nestl

philosophy, and our aim is to bring products to people's doorsteps. A History of Service

In line with our parent company's global philosophy, we are proud of our

commitment to excellence in product safety, quality, and value. Ourproducts cater to human needs, and we are active in the communities weserve.From spreading awareness about nutrition and wellness to digging wellsin the Thar desert and succouring earthquake victims, we are committedto serving our country and its people.The consumer's voice is key to Nestl Pakistan's vision and working.Whether you live in the remotest village or the metropolis of Karachi,our consumer services team stands ready to listen to your concerns and

provide answers about our products and guidance on matters of healthand wellness.


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Commitment to excellence, good food & good life are words that bestdescribe Nestl. We at Nestl Pakistan are a team of people committedto adding value to the lives of the Pakistani people by helping them livea life full of wellness & vitality .

We welcome you to this life.

Nestl with its operational excellence, best management practices andtotal commitment to quality has you our consumer at the heart ofeverything we do.

We sincerely thank you for believing in Nestl and our products &making our journey to success ever more possible.

Our aim is to make our consumers well aware of what they eat and howto take care of their nutritional needs. We, therefore, invite you to get toknow our products better and to look at our unique features on thiswebsite where you will discover informative pieces that will help youmake healthier and balanced choices in your and your families lives.

Nestl is on accelerated growth with a motto to celebrate life byproviding its consumers quality food products that are essential to goodliving.

Enjoy your visit to our Nestl Pakistan website and we hope you willvisit again often.

We wish you Good Food Good Life

Ian James DonaldManaging Director


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The Nestl global vision is to be the leading health, wellness, and nutrition company in theworld. Nestl Pakistan subscribes fully to this vision. In particular, we envision to:

Lead a dynamic motivated and professional workforce proud of its heritage and bullishabout the future.Meet the nutritional needs of consumers of all age groups from infancy to old age, fromnutrition to pleasure, through an innovative portfolio of branded food and beverage productsof the highest quality.Deliver shareholder value through profitable long-term growth, while continuing to play asignificant and responsible role in the social, economic and environmental sectors of thecountry.We have profitable and diversified high quality food and beverage product portfolio,delivering 60:40+ advantage to consumers, available across all sales channels.Our brands are the preferred choice in their categories. Consumer insight drives all aspects ofour marketing and communication efforts.Our communications to the consumer are relevant, cutting-edge, and adhere to the higheststandards of responsible communication.Our company is seen as the No. 1 career destination for talented, motivated and ambitious

professionals.Our result-oriented organisational structure ensures effective communication and empoweredself-management.Our milk collection and agri services will continue to play the primary role in developmentof the dairy sector in rural Pakistan.Our proactive innovation and renovation culture is the key to our success in the marketplace.

Fully integrated systems (Nestl Pakistan, suppliers, customers) ensure efficient businessprocesses.Non-strategic activities and products are outsourced or discontinued.


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Nestl Pakistan Ltd is a subsidiary of Nestl SA, headquartered in Vevey, Switzerland. Weare a standard-bearer of Nestl SA's global performance; registered on the Karachi andLahore stock exchanges, for the past five years we have been declared one of the top 25companies on the Karachi Stock Exchange.

Headquartered in Lahore, we serve both Pakistan and Afghanistan. Of our five productionfacilities, two manufacture a wide range of products. The remaining three produceNESTLPURE LIFE.

Our legal advisors are Cheema & Ibrahim (Advocates), and our audits are performed byKPMG Taseer Hadi & Co (Chartered Accountants).

Corporate Governance Principles

We are dedicated to following the best practices laid down by our parent company,Nestl SA. We have implemented the Corporate Governance Principles establishedby Nestl SA, covering four core areas:

Rights and responsibilities of shareholders

Equitable treatment of shareholders

Duties and responsibilities of the board of directors

Disclosure and transparency

Corporate Internal Audit

Recognising the need to maintain transparency and verify the application of corporatestandards, Nestl Pakistan has established an internal audit department that monitorsadministrative and operational functions throughout the company. Thanks to itsoperations, we can be assured that adequate internal controls are in place,management information is reliable, resources are used effectively, and companyassets are safeguarded.
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As the world's number one Food and Beverages Company, Nestl isa complex organisation, operating in challenging and varied businessenvironments.

To fulfil our commitment to serve our customers better, we areadopting common business practices in all areas of business.

This vision is at the heart of GLOBE Global Business Excellence,and Nestl Pakistan is proud to be part of this international initiative.

We know that by standardising the way we capture and report business data, and by putting our IT infrastructure on a globalplatform, we can be more flexible and focused on our products andbrands, and therefore more responsive to our customers.

GLOBE Launch in Pakistan

On 7 February 2005, the System Application Products (SAP)implementation project was successfully concluded in Pakistan.

All Nestl Pakistan sites, including the head office, factories,distribution centres and zonal sales offices, migrated to SAP, a state-of-the-art information technology system.

The Nestl Pakistan GLOBE team helped streamline almost every

area of operation, allowing the company to become more efficient aswell as more consumer-focused.

With Nestl Pakistan growing at its present high rate, the successfulimplementation of the GLOBE programme has improved our

business processes, operational efficiency and communication/ITinfrastructure.

We can now focus on ensuring a better level of service, and providing satisfying and healthy products for our consumers, formany years to come.


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We want Nestl products to be within reach for every singlePakistani. Yet nutritional value and quality remain the most essential

ingredients in all our brands.

Over the years, food products have evolved from mere commoditiesto a statement of lifestyle. As consumers get more health and qualityconscious, consumer empowerment surges.

We continue to play our part in facilitating this revolution bylaunching value-added products such as CERELAC, NESTL Raita,

NESVITA and NIDO NNS and many other dairy and non-dairyproducts. Consumers can avail many of our products with brandedactive benefits that no competitor product offers.

Nestl brands are designed to suit your lifestyle and your needs. You can take advantage of the bestnutrition in a way that is suitable for your tastes and lifestyle.

For instance, you can purchaseNESTL Juicesin several different sizes depending on your needs: apersonal-sized 200 ml for on-the-go consumption, or a litre pack for your fridge.

All our key brands are equipped with the Nutritional Compass that ensures all the nutritionalinformation about the product is accessible thanks to our user-friendly nutritional labelling andguidelines.

We're proud to be among the only companies in Pakistan to venture outside the commercial mode ofcommunication, offering programmes catering to better child nutrition and good parenting.

We have developed an intensive distribution strategy that brings our products to your door, througheffective communication, door-to-door sampling, and exciting consumer promotions.

We focus especially on Pakistan's smaller towns, where activities such as town storming, distributiondrives and intensive distributor training ensure that products are easily accessible and visible, givingus a strong competitive edge.

Our widespread global network presents opportunities to learn from innovative techniques used infaraway countries. Pakistan has contributed in a big way towards this by introducing Nestl NESTL

PURE LIFEto the world. Pakistans favourite water is now available all around the world!
http://www.nestle.pk/brands/nestle-cerelac.aspxhttp://www.nestle.pk/brands/nestle-raita.aspxhttp://www.nestle.pk/brands/nestle-raita.aspxhttp://www.nestle.pk/brands/nestle-nesvita.aspxhttp://www.nestle.pk/brands/nestle-nesvita.aspxhttp://www.nestle.pk/brands/nestle-nido.aspxhttp://www.nestle.pk/brands/nestle-nido.aspxhttp://www.nestle.pk/brands/nestle-nido.aspxhttp://www.nestle.pk/brands/nestle-juices.aspxhttp://www.nestle.pk/brands/nestle-juices.aspxhttp://www.nestle.pk/brands/npl-bottled.aspxhttp://www.nestle.pk/brands/npl-bottled.aspxhttp://www.nestle.pk/brands/npl-bottled.aspxhttp://www.nestle.pk/brands/nestle-cerelac.aspxhttp://www.nestle.pk/brands/nestle-raita.aspxhttp://www.nestle.pk/brands/nestle-nesvita.aspxhttp://www.nestle.pk/brands/nestle-nesvita.aspxhttp://www.nestle.pk/brands/nestle-nido.aspxhttp://www.nestle.pk/brands/nestle-juices.aspxhttp://www.nestle.pk/brands/npl-bottled.aspxhttp://www.nestle.pk/brands/npl-bottled.aspx


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HR is dedicated to our employees, and ensures that we have all theright people with the right skills, in the right places at the righttime.

Understanding that our people are the bedrock of all our businessstrategies, it is our mandate to enhance their skills with cutting-edge training and provide them with world-standard facilities.

We select flexible, innovative people who are ready to confrontnew challenges and make a difference. Our groundbreakingManagement Trainee Programme aims to develop talented youngmen and women and help them achieve their potential in adynamic and enabling environment.

Over a hundred people travel out of the country every year to takeadvantage of our international training and development events.
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Factories:

Our products are manufactured in five facilities scattered around the country, fromIslamabad in the north, to Karachi in the south.

Two state-of-the-art multipurpose factories are located in the agricultural heartlandof the Punjab, and the remaining three are dedicated to producing our trusted

brands of bottled water.

As citizens of Pakistan, we consider it our duty to make sure that ourmanufacturing processes are clean, hygienic and safe.

We are constantly working to reduce emissions at our factories, reducing andtreating wastewater, and making our packaging environmentally friendly. Regularaudits have confirmed that our factories' environmental management meets the

Nestl international standard.

As is the Nestl policy around the world, we care for our people. We uphold theprinciples of the UN Global Compact and encourage women to participate.

Sheikhupura Factory

At the very heart of the Punjab's major milk district stands our Sheikhupurafactory, a vast state-of-the-art operation that produces many of our most

popular products, such asMILKPAKUHT milk, low-fat high-calciumNESVITA products,NESTL PURE LIFEwater,CERELACand yogurt.

The factory commenced operations as part of Milkpak Ltd in 1981. At thetime it produced only UHT milk, but by 1988 had expanded to produce

butter, cream and ghee, as well as fruit drinks.

In 1988, it became part of the joint Milkpakventure, and, soon after,NIDOmilk powder started being produced here.

As the needs of Pakistani consumers grew, we added the capacity tomanufacture new products. In 1998 we started supplying dairy mixes toMcDonald's. A plant to produce the popular NestlNESTL PURE LIFE

bottled water was also commissioned.

In recent years, the plant's capacity has been enhanced to produce fruityoghurt, tea whitener, cream and raita, as well as low-fat, high-calciumdairy products, sold under theNESVITAbrand.
http://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-milkpak.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-milkpak.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nesvita.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/npl-bottled.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-cerelac.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-cerelac.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nido.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nido.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/npl-bottled.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/npl-bottled.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nesvita.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nesvita.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nesvita.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-milkpak.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nesvita.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/npl-bottled.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-cerelac.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nido.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/npl-bottled.aspxhttp://d/MBA%20Lectures/3rd%20Semester/POM/final/brands/nestle-nesvita.aspx


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Kabirwala Factory

In 1990, Milkpak acquired the Kabirwala factory, located in Khanewal district ofthe Punjab, as a subsidiary. By 1997 it was a fully owned unit of Nestl Pakistan

Ltd.

Soon after it was acquired, we began upgrading its capacity. In 1992 we added aMAGGI Noodles plant was added and 1996 saw an additional of a milk powder.

Over the years, the Kabirwala factory was constantly enhanced. EVERYDAY teawhitening powder was introduced in 2002 and revolutionised tea and coffeedrinking in homes and offices around the country.

In 2005, the factory continued to make notable achievements.

2006 has seen the commencement of Kabirwala Extension Project that would becompleted in April 2007 at a cost of about Rs. 4.0 billion.

The project has seen expansion of milk processing capacity to triple its current size,both for powder and liquid.

The factory Is also currently producing Nido (started in 1998) and Milkpak UHT(started in 2006)"In 2001 we acquired theAVA water factory in Islamabad. It became a fully owned unit in2003, and we immediately instituted a programme of major improvement to bring the

facility on par with international standards.

Over the years, better and more efficient machinery has been introduced. This has helpedus speed up production, and provide our consumers with their favourite brands of bottledwater in convenient package sizes.

We are proud that the Islamabad factory has made efforts to bring Pakistani women intothe workforce, by providing a comfortable and enabling work environment.

Indeed, we were amongst the first to employ female operators working alongside men inour production department.

Islamabad Factory
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Continuing its past tradition of excellence, Nestl Pakistan opened the largest milk plant ofAsia and also the largest milk reception among Nestl World at Kabirwala on March 16,2007.

The inauguration ceremony was presided over by President of Pakistan, General PervezMusharraf and attended by Chairman and CEO of Nestl Mr. Peter Brabeck-Letmathe.

Among the other distinguished guests at the ceremony Governor Punjab Lt. Gen (Retd.)Khalid Maqbool, Chief Minister Punjab Ch Parvez Elahi and Federal Minister for IndustriesMr. Jehangir Tareen were prominent.

President of Pakistan lauded the services being rendered by Nestl for the development ofdairy sector in Pakistan and also appreciated the investment being brought into the market.An estimated US $ 371 million will be pumped into the economy by 2014, of which morethan US $ 70 million have been spent to see the Kabirwala milk plant to its completion.President vowed to work extensively with the company to ensure quality standardization and

provide farmers with resources to be able to access the market and take benefit from theirproduce.

Speaking at the occasion, Mr. Peter Brabeck-Letmathe, thanked the President specifically,


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and Government of Pakistan in general for their investment friendly policies and initiatives.He termed the event as a historic step since Nestls arrival in Pakistani market. This, hestated, was made possible by policies such as zero rating on dairy industry and othermeasures for developing the sector.

Mr. Roland Decorvet, Managing Director, Nestl Pakistan outlined the achievements byNestl Pakistan and reiterated the commitment to engage with all stakeholders and worktowards the benefit of dairy industry in Pakistan. He also termed the outlook for doing

business in Pakistan as positive and shared his long term vision for the company. He alsoemphasized upon the need to regulate the sector in terms of quality to help consumers avoidharmful, low quality products.

The Plant inauguration was followed by the Graduation ceremony of Lady LivestockWorkers under Nestl UNDP Community Development Project which was also attended byResident Representative of UNDP in Pakistan. Mr. Peter Brabeck-Letmathe, speaking at the

occasion reaffirmed Nestls commitment to the communities where Nestl operates. He alsothanked UNDP for trusting Nestl with the project and expressed hope that the project willachieve its objectives and cooperation between UNDP and Nestl will continue beyond this

project.


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Nestl Pakistan's supply chain makes sure that Nestl productsare available, no matter where you are in Pakistan.

We integrate processes from the farm to markets, and ensureproducts are delivered to you at the right time, the right cost andin the right quantities. In the first quarter of 2006 alone, wedelivered an astonishing 136 million kg of Nestl products inPakistan.

Supply chain was established as a separate department in 2001.Since then, we've achieved a number of milestones, including acold-chain in 2002, centralised demand and supply planning in2003, and implementation ofGLOBE in 2005.

We were selected for a Best in Class repository study, and threeof our best practices were subsequently incorporated into the BestPractices Library.

Our mission is to:

Optimise and consolidate resources and processes for a low-cost but efficient.

Develop and manage simplified and effective supply network

to achieve a high level of service.

Create a continuous improvement culture driven byperformance measures and reward.
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Nestl has a long tradition of helping the farmers who provide our raw material.

Nestl Pakistan is committed to continuing this tradition; we consider it a way of engaging in amutually profitable partnership with our suppliers.

Thus, ever since we took over the milk collection system in 1992, our Agricultural Services haveendeavoured to help the farmers of the milk district with their husbandry.

Better animals means there will be better milk. We gain a reliable supply of high quality milk, butthe greatest benefits, both immediate and long-term, are to the farmers themselves.

Our proudest achievement is our internationally acclaimed development of the Punjab's milkdistrict.

Hundreds of thousands of small farmers live over an area of 100,000 square kilometres in centralPunjab. Of these farmers, most have only a few head of buffalo yet Pakistan is the world's fifthlargest producer of milk.

Milk is very fragile in our hot climate, and distribution historically depended on a network ofsuppliers and middlemen. Without refrigeration, the milk arrived in towns already soured oradulterated with preservatives, such as vegetable oil or caustic soda.

When Milkpak Ltd. began operations, such was the state of affairs that though the milk wascleaned, pasteurised, homogenised and sterilised at the Milkpakfactory in Sheikhupura, its shelf-life in summer was, at most, four weeks. By contrast, in Europe UHT milk had a shelf-life of sixmonths.

Something had to be done. Milkpakimmediately took measures to improve milk quality and thecollection system, and when Nestl entered in 1988, these efforts were stepped up.


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Milkpak set up reception centres with cooling facilities where farmers and dodhies, small-time milk merchants, could bring their wares.

It was a simple solution, but difficult in practice: importing the stainless steel chilledcontainers required was prohibitively expensive. By 1988, the company purchased 120 tonsof milk a day from 26,000 farmers.

After acquiring a share in Milkpak Ltd in 1988, Nestl immediately began investing in milkcooling tanks. Between 1988 and 1992, 100 milk tanks were installed.

1992 onwards, with full support from the Nestl headquarters in Switzerland, reorganisationof the milk collection operation and the provision of agricultural technical assistance becametop priorities.

The investment paid off. Within a decade, Nestl's purchase of fresh milk had quadrupled,and the number of small farmers selling milk to Nestl tripled.


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Follow the story of Nestl's dairy products, from humble beginnings on tiny farms in Sheikhupuradistrict, all the way to your table!

Step 1

A small farmer in rural Sheikhupura district milks his buffalo twice a day and takes about 4 litres toone of Nestl's 500 Village Milk Collection Centres.

Step 2

At the Village Milk Collection Centre the farmer's milk is poured into aluminium churns. The agentchecks the milk's freshness and purity, and enters the quantity into the farmer's logbook. He takes it toone of Nestl's 1308 Secondary Reception and Cooling Stations, about 2-4 kilometres away.

Step 3

The Secondary Reception Station has a large electrically powered cooling tank. A milk inspectormeasures the fat content, the non-fat solids content, and the milk's acidity. Once satisfied, he takes themilk to one of 27 Main Reception and Cooling Stations.

Step 4

At the Main Reception and Cooling Stations the milk is poured into huge tanks and is thoroughlychecked for quality. The milk is dispatched to the factories.

Step 5

At the Sheikhupura and Kabirwala factories, the milk is processed and packed into the familiar Nestlcartons you can find in your grocery store. It is checked for quality thrice before being released forsale. Some is processed into yoghurt, powdered milk, or other dairy products.


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Even before calling Nestl in, Milkpak Ltd. had tried to ensure that milk cows were givenfresh fodder during the summer.

Our teams are always prepared to offer practical advice. We have planted a variety offodder crops, which we demonstrate to farmers on field days.

We also provide training on best practices in animal husbandry. For instance, we stress theimportance of giving cattle enough water, and train farmers in hygiene and milking.

Livestock Breeding & Health

Pakistan's vast milk production comes largely from buffaloes, despite their small yield. Ouragronomists have shown that with artificial insemination we can actually triple milkproduction. Yet artificial insemination is still not widely used.

In 1996, our vets and agronomists independently formed an NGO to promote artificialinsemination using high quality semen.

Today, with help from Nestl and others, they have established a training programme forinseminators, and provide high quality imported semen at low cost to farmers.

We concentrate on preventative measures against the most common diseases that afflictcattle in Pakistan.

Farmers know that they can call on our trained vets whenever necessary.

Better Equipment

Our agricultural services staff have drawn up technical plans for cowsheds, which are

provided free of charge.

Our mechanics have also developed prototypes of machines to cut fodder quickly andinexpensively.

Starting 2004, we went a step further and proposed a system of small loans for farmers whowanted to make improvements to their farms, such as building cowsheds.

We drew up the sample specifications for a model farm to be presented to the banksdisbursing the loans. The Service even helps farmers fill out applications for loans.


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Asif Ikram is a typical small farmer. He owns two hectares of landand lives in a mud house in a village of 1800 people. He haselectricity but no running water.

Asif and his family work their land themselves. The only equipmentthey own are hand tools, though Asif hires a tractor when needed. Herecently bought himself a bicycle and a television.

Asif owns three buffaloes, of which two are in lactation. WithNestl's help he plans to apply for a loan to build a cowshed, but fornow, the animals live in his courtyard.

Asif's buffalos produce ten litres of milk a day. He takes six litres on

his new bicycle to a Village Milk Collection Centre a kilometreaway. Every Tuesday, he receives payment at published rates. 60%of the family income derives from Nestl's milk pay.

"I thank God that now, for the first time in my life, I sleep in peace. Ino longer fear for my family's future, he says.

The above excerpt is an extract from 'Nestl in Pakistan 1988-2004:The Development of a Milk District', by Rmy Montavon.


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In 2005 we restructured our agricultural services so that they now consist of over thirty full-time agronomists, vets and agricultural engineers to help the farmers of the Punjab with theirmilk production.

Yet there is another crucial stakeholder in every milk-producing farm: the farmer's wife.

We have created seven teams of three women each, all trained vets, sociologists andspecialists in animal husbandry.

Their task is to meet farmers' wives and empower then through training in milk production,animal husbandry, and hygiene, and to give them an understanding of Nestl's milkcollection system.

In effect, there's a quiet revolution going on in Pakistan's milk district.


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In Nestl's view, it must be fully integrated in the social, cultural and economic fabric of thecountries in which it operates. Thus no matter which country it operates in, it is committed tostrengthening local communities.

At Nestl Pakistan we are wholeheartedly committed to meet our obligations to Pakistanisociety and be a good corporate citizen of the country.

We follow the code of corporate governance strictly, and try to deal fairly with allstakeholders, no matter their age, background or geographical location.

We take our responsibility to our consumers very seriously. Community Service

Our vision of Corporate Social Responsibility guides all ouroperations. We feel that businesses and society are partners: ifone flourishes, so does the other. We are deeply involved in

philanthropic initiatives, from humanitarian relief to sponsoringschools and donating to hospitals and welfare programmes.

At the same time, we try to make sure that our own businesspractices are good for our society. OurMilk Collection System isa glowing example of our dedication both to our community andour consumers.

In the years since we began operations in the Punjab's milk-farming region, local farmers have seen their lives improve, whileconsumers get safe, high quality milk products.

We follow a code of good corporate practice so that ouroperations create positive social and environmental impacts.

Recognising that the current generation is the guardian ofPakistan's future, we at Nestl Pakistan adhere strictly toenvironmentally safe industrial practices.

We are active in Social Action Programmes for disadvantagedPakistanis, and wholeheartedly support the principles of the
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United Nations Global Compact.

Our Consumers

The countless Pakistanis who choose Nestl know that they can rely on us. Weprovide the finest quality, while constantly reinventing our self and our products tosuit consumer needs better.

We try to make our products accessible to every consumer. Whether you need just adrink of water on a cricket field, or a week's pure water for your workplace,NESTL

PURE LIFEis available in a size to suit your needs.

To help you lead a more fulfilling life, our research centres around the world areconstantly developing new ways to make the food you eat and the beverages youdrink healthier and reinforced with vital nutrients.

This concern for your wellness extends beyond our in-house brands our Wellnessteam is always there to help guide you to a healthier lifestyle for you and your lovedones.

Your views and needs are central to Nestl Pakistan's operations. That's why we havea dedicated Consumer Services team ready to answer questions, advise you about yourfamily's nutritional requirements, or simply help you whip up a quick, delicious meal.
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Good Food, Good Life: the key to health, nutrition and wellness.

With over 140 years of experience and expertise, we take great pridein bringing you the best products because happy, healthy consumersare important to us.

We develop our products keeping your preferences, tastes and needsin mind. We understand that you, along with millions of otherconsumers, know that you can trust our products to deliver purity,quality, convenience and nutrition.

Our products are carefully aligned to Pakistani tastes and needs.

We're always trying hard to develop new products and improveexisting ones, and serve our consumers better.

That's why through constant renovation and innovation we're alwaystesting or launching value added products and making them availablein sizes that will suit every requirement.

So explore the world of health with Nestl products, and find outwhat suits your family's needs!
http://www.nestle.pk/brands/our-brands.aspxhttp://www.nestle.pk/brands/nestle-kit-kat.aspxhttp://www.nestle.pk/brands/breakfast-cereals.aspxhttp://www.nestle.pk/brands/maggi.aspxhttp://www.nestle.pk/brands/nestle-cerelac.aspxhttp://www.nestle.pk/brands/npl-bottled.aspxhttp://www.nestle.pk/brands/nescafe.aspxhttp://www.nestle.pk/brands/nestle-milkpak.aspxhttp://www.nestle.pk/brands/our-brands.aspx


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Orange Juice, Pineapple Nectar, Apple Nectar, Red GrapesNectar, Chaunsa Nectar, Guava Nectar, Mango & Mango-Orange.Available in 1000ml brick & 200ml wedge packs

available in 1000ml, 500ml & 250ml


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Strawberry, Mango & Peach available inready-to-serve 100g cups


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Pakistans Favourite Water


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Whether it's in a restaurant, a caf, a university or an office, wehave a range of solutions to fit your needs, from economical bulk

packaging to ready-to-serve individual servings.

Our FoodServices team is there to help businesses and food andbeverage professionals. We provide high quality solutions that areconvenient, economical and easy to use.

We add value by offering the ideal solution for your business. Ourdiverse products are known for their consistent quality and aredesigned to optimise on utility and usage.

When you partner with us, you work with a company with 10 years

of expertise, trust and the credibility of being the number 1 foodand beverage solutions provider in the world.

Nestl FoodServices operates in more than 60 countries worldwide,on all 7 continents.


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Quality is the foundation of our Food, Nutrition, Health andWellness Company

At Nestl Pakistan, we consider ourselves the standard bearers ofour founder Henri Nestl's care for safety and quality. Thus,

Nestl Pakistan has an absolutely non-negotiable commitment toproduct quality and food safety.

We take our motto of Good Food, Good Life very seriously. Atevery step, from collecting raw materials from rural farmers todistributing finished goods in city supermarkets, our employeesare trained and retrained to understand their role in ensuring thatconsumers enjoy food and beverage items of the highest quality.

The Nestl name on a product is a promise to consumers that:

It is safe to consume

It complies with all relevant laws and regulations and meets highstandards of quality. In addition, we constantly try to improveand tighten existing regulations. We wish to ensure the highest

possible benefits and protection for our consumers. For thisreason, we actively participate in the revision of food standardswith the government.

Quality is to win consumer trust and preference

We are committed to offering products and services to ourcustomers that meet their needs and/or preference and providesound nutrition.

Quality is everybodys commitment

Our management takes the lead, sets the objectives anddemonstrates its commitment towards quality. All Nestl

functions across our Value Chain are fully responsible to followmandatory norms and instructions for maintaining agreed quality


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standards. We follow the stringent international standards of theWorld Health Organisation's Codex Alimentarius on food

production. All factory laboratories operate according to GoodLaboratory Practices guidelines. Our Sheikhupura and

Kabirwala laboratories have long enjoyed an 'Excellent' rating inthe worldwide proficiency tests conducted by Nestl SA(Switzerland), and attest to the world-class quality of ourfactories.

Quality is to strive for zero defect and no waste

We focus on facts and results and we strive for zero defect andexcellence in everything we do. We adopt a no waste attitudeand constantly look for competitiveness and opportunities forContinuous Improvement of the quality standards delivered to

our consumers.

Quality is to guarantee food safety and full compliance

A solid quality management system must rely on a strong andfully empowered quality function. We enforce full compliancewith the mandatory standards and principles of our QualityManagement System, which include Food Safety, Regulatoryand Quality requirements in every step of our Value Chain. The

Nestl Quality Management System builds on the existing NestlQuality System and adds a strong management component to it.The new dimension is the management of quality in all therelevant business processes from Consumer Requirement toConsumer Satisfaction.


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We believe that every single company, no matter where in the world it

operates, ought to be fully integrated into the local social, cultural &economic life. We must be good corporate citizens, and give back to thesocieties to which we belong.

There are two ways of fulfilling our responsibility and practisingcorporate Social Responsibility: Through social investments: giving to charities, leading and

supporting cultural or welfare initiatives. Through the realisation that businesses create social and

environmental impacts, both positive & negative, through the dailyoperations of their value chain.

Our operations throughout the world are committed to making full useof these tools. Thus Nestl people everywhere are involved in the many

programmes and projects we have designed to strengthen localcommunities and nations.

We are heavily involved in projects relating to our own areas ofexpertise, such as nutrition education & research, health projects, andagricultural assistance. In times of crisis we are often amongst the firston the scene to help with humanitarian relief aid and food donations.

To help culture & society flourish, we do our best to encourage a hostof other activities: we support charities, education and traininginitiatives, art and cultural events, sport events and HIV/AIDS

prevention.


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In our 140 years of experience, we have learnt that businesses andthe societies in which they operate are in a symbiotic relationship. Ifsociety flourishes, business is good. If a business does well, it bringswealth and stability to a society.

From this organic interdependence comes our conception ofcorporate Social Responsibility (CSR).

We try to Create Shared Value at every step of our value chain, toensure that our actions benefit not only the company, but alsosociety at large. Both are, after all, interdependent. Thisconsideration affects all our corporate initiatives.


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In line with Nestl's global commitment, Nestl Pakistan is dedicatedto playing its role in helping to protect the environment.

We comply with the Environmental Act (1997), and try to ensure thatat every stage of our operations, the environmental impact is minimal.

Learn more about our Responsibility to the Environment projects:

Our Environmental Commitment in Action

Our environmental commitment extends to every part of our valuechain.

Thus, at the raw materials stage, we support sustainable agriculturaland dairy farming practices, including environmental protection.

When it comes to production, all our factories try to maximise eco-efficiency, i.e. increase production while minimising resourceconsumption, waste and emissions.

Our factories are equipped with complete testing and monitoringfacilities for waste and air emissions.

To eliminate air pollution, we have stopped using heavy fuel oil in our

factories, which are now run on clean natural gas. This has reduced ouremissions into the atmosphere to well below the legal limits.

Our Sheikhupura & Kabirwala factories have elaborate water treatmentsystems to prevent wastewater from polluting the environment.

In 2005, we upgraded our wastewater treatment plants in bothfactories. That's not all; we are continually reducing our consumptionof raw water per ton of production.

Irresponsible packaging can have a heavy impact on the environment.To reduce the amount of material used without jeopardising the safety


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and quality of our products, we are always working on new packagingsolutions that have minimal weight and volume and can be easilyrecycled.

We even operate a collection system for used packaging. Solid waste iscollected at source and then reused, recycled or disposed in anenvironmentally friendly way.

Natural gas incinerators at our Sheikhupura & Kabirwala factories areused to safely dispose of material that cannot be recycled & dumped.

Our factories have environment committees to manage routineenvironment issues and review performance. Environmental impactassessment is done in advance for every new project and measures areadopted to minimise adverse impacts on the environment.

Our employees regularly undergo training to inculcate awareness aboutenvironment-friendly practices.


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Nestl Pakistan is involved in a wide range of programmes and projects intended to improvethe lives of underprivileged Pakistanis.

Efforts are focussed on: Well and Hand-Pump Installation Projects

Potable water is a basic human necessity, yet it is denied tomillions of Pakistanis. We have helped alleviate rural suffering

by undertaking tube-well and hand pump installation schemes inselected areas.

Our first tube-well was completed in 2002 in a village of 3000inhabitants in Tehsil Dunyapur, Khanewal. A second one was

commissioned in 2005 near Chishtian.

Since then 300 hand pumps have been installed in the ariddeserts of Thar and Cholistan.

Moreover, the residents of villages which host our milkreception centres know that they can always make use of ourwater pumps.

Help Centre for Farmers

Our Milk Collection and Agricultural Services Departmentprovides free advisory and support service to dairy farmers.

We give training in animal husbandry practices, vaccinate andtreat their milch animals, help farmers buy feed supplements andfodder seeds, and assist in breed improvement.

This translates into increased milk production, better income,and a better life for farmers.


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Taking the Nestl concept of corporate Social Responsibility toheart, we are deeply involved in social investment and

humanitarian aid.

We are committed to Pakistan's long-term betterment, and strictlyfollow the code of corporate governance.We deal fairly with stakeholders.We serve our consumers through safe, high quality products &communicate with them responsibly. We try to benefit ourconsumers by spreading awareness about healthy nutrition andlifestyles as well as constantly developing or improving existing

products for health, nutrition and wellness.

During our manufacturing process we are careful to minimiseenvironmental impact and value employee welfare highly.

We are actively involved in several social action programmes(SAPs) to improve the lives of our country's under-privileged

people.

We offer generous financial support to hospitals andorganisations that are dedicated to providing services to the poor.Only recently, we donated a mobile dispensary to APWA for itsmedical outreach programme in a remote community near Hub,Sindh.

We adhere to the global Nestl philosophy of Creating SharedValue. Our dairy suppliers in the Punjab's milk district can attestto the agricultural and technical support we offer them.

We have always responded generously with assistance to victimsof natural disasters, such as floods, earthquakes and droughts.

When the October 2005 earthquake hit Azad Kashmir and the

NWFP, we lost no time in reaching out to the affected withdonations of food products worth millions of rupees.


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Consumer Relationship Marketing lies at the heart of Nestl Consumer Services. We strive tobuild a long-term, sustainable relationship of trust and loyalty.

Our customer staff stands ready to help consumers with any queries or complaints regardingour products, and draws upon Nestl Pakistan's vast in-house resources to answer questions.

Recently, we launched an advanced consumer contact management system called CONSO+.This is a specialised programme specifically designed to help us deal with contactmanagement and analysis and form closer ties with our consumers.

We can better develop our products based on consumer tastes and preferences, whileconsumers themselves benefit from our customised services and commitment to deliveringwellness

Food and beverages play an increasingly important role in people's lives. What people eatand drink and how affects how they live their lives. Moreover, each person's nutritionaland social requirements are different.

Thus, our consumers benefit greatly from Nestl's commitment to providing products that gobeyond taste and convenience, and integrate health, nutrition and wellness, at every stage inlife.

We have created two key units to further this project: the Corporate Wellness Unit andNestl Nutrition.

The Corporate Wellness Unit drives the health, nutrition and wellness dimension byproviding wellness-related tools and solutions. We have devised the world's first globalnutritional labelling system: the Nutritional Compass. (Play animation below to see anexample of the Nutritional Compass in practice.)

Already printed on food and beverage packs accounting for half our global sales, it gives ourconsumers relevant information on nutritional content, as well as nutritional tips and contactinformation for our consumer services.

Nestl Nutrition focuses on three main areas: Infant Nutrition, HealthCare Nutrition andPerformance Nutrition. It aims to launch innovative scientifically based products, such asClinutren repair, a nutritional supplement that aids wound healing.

We hope to cater to the specific needs of every consumer, to enable them to lead healthy,productive and enjoyable lives.
http://www.nestle.pk/index/commitment.aspx#comphttp://www.nestle.pk/index/commitment.aspx#comp


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At Nestl, our principal commitment is to our consumers

Nestl Consumer Services is the main interface between you and thecompany, and we make every effort to ensure that your voice isheard. After all, it's your satisfaction that really counts.

When Henri Nestl prepared his first boxes of infant formula forsale, he put his address on the packages. Today, the NutritionalCompass on our packaging encourages consumers to Talk to Nestl,expressing the same belief in openness and accessibility.

We want to build a long-term relationship of trust and loyalty withyou. This helps ensure that you, our consumers, are happy, satisfiedand able to live fulfilling lives.

Accordingly, Nestl representatives are poised to provide prompt

service and relevant information whenever needed.

We try to talk to you, but more, we listen to you. Only by hearingwhat you say can we understand what you want and need. Only byunderstanding your needs can we serve you to the fullest and helpyou achieve your aspirations.

Consumer Services doesn't just provide us with feedback on ourcompany, brands and products. It helps us gain important consumerinsights: what are the relevant values you hold dear? What do youlook for in our products?

Our philosophy and strategyWin consumers' trust.Understand consumers' nutritional and emotional preferences. Serving our consumers and improving their quality of life.

Our strategy starts and ends with the consumer.

We work in four key areas

Direct Contact: Only by coming to you and asking you can weunderstand and fulfill your needs.

Sharing Recipes: Your favourite food & beverage items, preparedthe way you like them.

Consumer Care: By harnessing state of the art technology, we tryto build a long-term relationship with you.

It's All About You: We are there to listen to you views anddevelop products according to your changing needs.


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Since our founding, health, nutrition and wellness have been central to the Nestl vision.

140 years after Henri Nestl, nutrition is, more than ever, the key to our company's future.Even as we enter the new millennium and adapt to the changing needs of our consumers, weremain loyal to Henri Nestl's ideals.

Our business is not just what we make, but the role these products play in making ourcustomers' lives better. Indeed, consumers are at the heart of all that Nestl does.

This philosophy is summed up in four words: Good Food, Good Life.

In our quest to become the world's leading health, nutrition and wellness company, we do

everything we can to help people live more fulfilling lives. Good Food, Good Life

Henri Nestl chose his own coat of arms to represent thecompany's philosophy: a bird's nest, with a mother feeding heryoung.

The image represents our core values: care, family values,nutrition, healthy growth, safety and comfort. It is a guaranteeof quality and a commitment to our responsibilities as a foodcompany and experts in nutrition.

Over the years we have reaffirmed our commitment towellness, helping our consumers to live longer, healthier, andmore productive lives, no matter their age, gender orsocioeconomic status.

Good Ingredients

Three vital ingredients lie at the heart of Nestl and cometogether in our brands: our people, our research anddevelopment, and our commitment to quality.

The 250,000 dedicated people who make up the Nestl familyare our source of strength and energy. Realising this, we offerthem constant professional development, and feel our culturaldiversity is one of our greatest assets.

Today, we are one of the largest investors in food technology.R&D is the cornerstone of the Nestl guarantee of quality.

We consider quality in three key dimensions: health, sensory pleasure, and social applicability. Thus we try to providenutritious, tasty meals that offer value and are culturallyrelevant.


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Good Practices

As the world changes, we at Nestl evolve and adapt to newcircumstances and environments. Nevertheless our business

practices are founded on certain tenets that reflect the basicideas of fairness, honesty, and concern for people.

We are committed to the following business principles in allcountries, taking into account local legislation, cultural andreligious practices:

Nestl's business objective is to manufacture and market theCompany's products in such a way as to create value that can besustained over the long term for shareholders, employees,consumers, and business partners.

Nestl does not favour short-term profit at the expense ofsuccessful long-term business development.

Nestl recognises that its consumers have a sincere andlegitimate interest in the behaviour, beliefs and actions of theCompany behind brands in which they place their trust, andthat, without its consumers, the Company would not exist.

Nestl believes that, as a general rule, legislation is the most

effective safeguard of responsible conduct, although in certainareas, additional guidance to staff in the form of voluntarybusiness principles is beneficial in order to ensure that thehighest standards are met throughout the organisation.

Nestl is conscious of the fact that the success of acorporation is a reflection of the professionalism, conduct andthe responsible attitude of its management and employees.Therefore, recruitment of the right people and ongoing trainingand development are crucial.


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In October 2005, the biggest natural calamity in our history struck Pakistan. Thousands diedand millions were left homeless after a massive earthquake hit our mountainous northernareas.

In step with the rest of the nation, Nestl Pakistan responded immediately, putting itsinfrastructure and resources to work in the affected areas.

First Responses

When the earthquake struck, Nestl Pakistan respondedinstantly, even before the magnitude of the disaster had dawnedupon the nation. We immediately donated food and beverageitems.

Within two days, we had established a crisis committee underthe supervision of our Managing Director. The same day, themanagement team left to visit the affected areas, and by 11October, the first six Nestl trucks left our factories, bearing

bottled water, powdered and UHT milk and ready-to-cookMAGGInoodles.

Instead of burdening the government and relief agencies, weaggressively reactivated our own shattered distribution channelsto bring supplies to the people who needed them most andestablished six camps to distribute relief goods.

Despite blocked roads, grave logistical challenges & anatmosphere of fear and suffering, our teams, consisting of aboutforty Nestl employees and distributors, went out and distributed

Nestl products to the affectees.

Within two days our teams reached the worst-hit areas aroundMuzaffarabad, Bagh and Mansehra. They worked incollaboration with the Pakistan Air Force and arranged forsupplies to be airdropped to the most inaccessible areas.

Other teams of Nestl volunteers supported relief work


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undertaken by other agencies around the affected areas.

As a result of our swift and carefully planned action, we wereable to distribute 80 trucks of goods, worth Rs 20 million. Two

10-ton trucks of drinking water were dispatched to MuzaffarabadHospital, and our volunteer teams ensured that goods weredistributed fairly and efficiently to those who needed them most.

Aftermaths

After the crisis comes a time for rebuilding shattered lives.Among our reconstruction efforts are the following initiatives:

We have allocated an amount of Rs 20 million, raisedthrough employee contributions, matching grants andcontributions from other Nestl markets. This amount will beused to adopt and reconstruct a model village in AzadKashmir.

We are thankful that no Nestl employee was personallyaffected, though a few lost family members and property. Wehave compensated all employees, distributors and their stafffor homes destroyed, to the tune of Rs 4.1 million.

We intend to build an orphanage in the affected areas for thehundreds of children who lost their parents in this disaster.

We are initiating a livestock health improvement programmeto help the locals rebuild their shattered lives.

Our parent company, Nestl SA has donated an additional Rs16 million for reconstruction and rehabilitation work.

Pitching In

Nestl employees worked tirelessly to bring aid to earthquakevictims. We are immeasurably proud of our people for theircontributions:

Nestl employees donated Rs 3.3 million from their own

salaries. Nestl employees in other countries also stepped forward anddonated to the Nestl relief fund.

Five teams of staff volunteers worked day and night in theaffected areas to ensure that relief goods got where they wereneeded.

A medical detailing team worked with the students of KingEdward Medical University, Lahore, to collect medicinesworth Rs 175,000.

Our parent company, Nestl SA has donated an additional Rs16 million for reconstruction and rehabilitation work.


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Direct contact with consumers is at the heart of our vision. Formany people around the country, our field staff is the face of

Nestl.

These dedicated field staff invite consumers, mostly homemakers,to Nestl activities.

We invite our guests to learn more about Nestl and its philosophyand brief them about our brands. We try to give them vitalinformation about health and wellness, to help their families live a

better lifestyle.

At these sessions homemakers have the opportunity to learn about acompany that produces many of their favourite foods and

beverages, globally and locally.

They also have the confidence of knowing that any concernsregarding their family's nutrition, health and wellness will becapably answered. They know that they can rely on Nestl.


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At Nestl, our chief commitment is to our consumers, and we makeevery effort to make sure that their voices are heard.

When Henri Nestl prepared his first boxes of infant formula forsale, he put his address on the packages. Today, our ConsumerRelationship Panel exhorts people to "Talk to Nestl", expressing thesame belief in openness and accessibility.

Our consumer services department is staffed by experts in every arearelated to our products and wellness, and is poised to provide promptand relevant service to our consumers.

We believe that consumer services requires us to talk to consumers

and also, above all, to listen to them.

Only by listening to what people say can we understand what theywant and need. Only by understanding their needs can we serve ourconsumers to the fullest.


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References:

www.nestle.pk

www.google.com.pk

Local market

Nestle Factory Kabirwala

Documents

ASIM MALIK Pom Project on nestle