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A
PROJECT REPORTROJECT REPORTONN
NESTLEESTLE
FOR THE PARTIAL FULLFILLMENT OF BACHELOR OF BUISNESS
ADMINISTRATION
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
SUBMITTED BY:
VIPUL
BBA (GEN)
SUBMITTED TO:
Mr. AMIT GUPTA
COURSE CORDINATOR OF BBA (GEN)
MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES
AFFILATED TO GURU GOBIND SINGH INDRPRASTHA
UNIVERSITY
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ACKNOWLEDGEMENT
I here with take the opportunity to express my profound sense ofgratitude and reverence to all those who have helped andencouraged me towards the successful completion of the project .Its
been a great experience working on NE!"E .It give me completeinsight about how an organi#ation not only survives in cutthroatcompletion but also maintain a killer instinct in the competitiveworld.
I would like to thank my project guider $r. AMIT GUPTA for hisimmense guidance .% valuable help and provided me the opportunity
to complete the project under his guidance
I would like to thanks all the faculty members of MAHARAJAAGRASEN INSTITUTE OF MANAGEMENT STUDIES forguiding me and supporting me in the completion of this project fromtime to time
"ast but not least my greatest gratitude to the almighty and myparents& without their support this dream would have remaineddream
CERTIFICATECERTIFICATE
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!his is to certify that (I)*" study in our institute MAHARAJA AGRASEN
INSTITUTE OF MANAGEMENT STUDIES was allotted the project on
NESTLE+ by ,uru ,obind ingh Inderprastha *niversity has successfullycompleted it under the guidance of $r. %$I! ,*)!%
DECLARATIONDECLARATION
I here by declare that the project work entitled NESTLE is an
authentic work carried out by me under the guidance of $-.
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%$I! ,*)!% /project coordinator0 for a practical fulfillment of the
degree of %/,EN0 and this has not been submitted anywhere
else for the award of any degree
Name of the student
(I)*"
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INDEX
CHAPTER
OJECTIVE
RESEARCH METHODOGY
CHAPTER !
INTRODUCTION COMPANY PROFILE
CHAPTER "
ANALYSIS OF DATA
PRODUCTS
CHAPTER #
CONCLUSION
LIMITATIONS
BIBLOGRAPHY
ANNEXURE
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EXECUTIVE SUMMARY
The current millennium has unfolded new business rules mostthe significant of them being that company has to constantlylook into minds of the customer. Customer loyalty plays asignificant role and today securing that loyalty requires qualityright price and of course last but not the least i.e. creatingawareness about their service. As a trainee, I was givenknowledge about the way and style of their working, theirroutine and their environment. It was a great experience ingetting under such a reputed company, which has in it the
ability to retain customer.
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OBJECTIVE
!o identify the services and products offered byNE!"E.
!o study and analy#e the customer perception andpreference about NE!"E.
5inally to draw the various conclusion andrecommendation on the on the basis of studyconducted.
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RESEARCH METHODOLOGY
anagers need information in order to introduce products and
services that create value in the mind of the customer. !ut the
perception of value is a sub"ective one, and what customer#s value
this year may be quite different from what they value next year. As
such, the attributes that create value cannot simply be deduced
from common knowledge. $ather, data %information& must be
collected and analy'ed. The goal of arketing $esearch
%analysis& is to provide the facts and direction that managers need
to make their more important marketing decisions.
The analysis involves the following steps(
)efine the problem.
)etermine research design.
Identify data types and sources.
)etermine sample plan and si'e.
Collect the data.
Analy'e and interpret the data.
*repare the research report.
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+or the purpose of study, data from the inhouse survey conducted
by the marketing department %secondary data& has been used and
also for coming out with the recommendation. It was also felt that
mere secondary data would not provide indepth information for
the analysis, hence it was decided that interactive discussions with
the managers and the head of every department would help in an
indepth and true understanding of challenges faced by the
department.
The methodology adopted was to gather relevant information from
the appropriate department, correlate the information obtained and
to present the information in a logical and systematic manner.
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INTRODUCTION
-estle India td. is a part of the -estle /A group which is one of the largest manufacturin
companies in the world. 0enri -estle founded the company %with its headquarters in 1eve
/wit'erland& in 2345. -estle has two ma"or divisions Le Societe des Produitswhich
looks after the production and marketing and Nestec Ltd. which provides the technical
assistance to the group companies. /ince its inception in 2345, the company has diversifi
it product range from the infant weaning formula %which was its first product& to beverages
confectionery, ice creams and pet foods among others. In a span of 267 years the compa
has ranked 84th among the world#s largest corporations and boasts of a turnover of 9
:3;68.< million and employee strength of 882,2:: people spread over 5< countries
worldwide %Annexure A&.
-estle has long been viewed as one of the most multinational
of the multinationals. This is because today only 8= of its
turnover comes from /wit'erland. >ut of the remaining ;3=,
?urope contributes :6.
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Comp!" Pro#i$e
Although -estle has been associated with India since the
beginning of the century through the importing and trading of infant
food and condensed milk, manufacturing in India only began with the
setting up of the factory in oga in 2;48. The first product to be
manufactured was Mi$%mid. In the last 6< years the company has
shown rapid progress and has increased its product range to 37products as of >ctober 2;;5. -estle India td. now ranks 88nd
amongst India#s most valuable companies %Annexure !& . Its gross
revenue has increased from $s 2772.2 crores to $s. 2826.3 crores in
2;;4. This remarkable growth has been achieved through
$apidly creating greater manufacturing capacity, both at factories
as well as with copackers.
Taking measures to ensure availability and improved quality of key
raw materials fresh milk in particular.
/trengthening of the sales and distribution network %particularly in
smaller towns&
Ambitious and cohesive manpower training and development
programs for the personnel of the company across all disciplines.
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The company#s exports also resulted in a very successful year in
this area as exports grew by 85= to $s. 8
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T&e Spirit o# Nest$e
Organisational excellence is never achieved through a one time
effort; It is always a process of continuous improvement across a
number of areas of operation.
A key factor for -estle#s success has been its quest for
continuous improvement through ushering in greater productivity and
more efficiency in everyday operations. )espite the infrastructure
impediments in India, -estle has set itself high standards of business
performance. This is reflected through the essence of the company its
mission statement.
Nest$e's missio!
To be in every way the leading company in the Indian food
industry and a good corporate citi'en by providing our consumers with
superior quality products, our shareholders with rapid growth D fair
returns and our employees with a challenging and satisfying work
environment.E
To translate this spirit into a planned and measurable process,
-estle has set up key ob"ectives across all divisions.
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Key Objectives
Productio!
To optimise production costs while enhancing product quality so as
to make -estle products even more competitive in the market place.
S$es !d mr%eti!(
To reach a sales turnover of 6777 crores by the year 8776
To double the turnover every three years
Peop$e
To help employees to retain a long term perspective and integrate
them fully with the company#s business goals
To retain a broad perspective while addressing individual needs
To view growth as a continuous process
To concentrate on attitudinal changes by developing leadership
skills, an appreciation of interdependence between units and the
enhancement of a sense of belonging to -estle.
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)i!!ce
To maintain profit levels above the average for the food industry in
India.
The !usiness ?xcellence and Common Application %!?CA& initiative
essentially translates the spirit of the ourney towards excellence into
an organised, systematic and measurable approach. The aim is to aid
the achievements of the company#s key ob"ectives of rapid growth byensuring that all operations incorporate the spirit of meaningful
planning, effective cost control and efficient implementation. !?CA is
about * p$!!ed impro+eme!t i! e+er"t&i!( ,e do -
Factories
-estle has 4 factories in India. These are
./ Mo( 0pu!123 4 The -estle factory in oga has the pride of being
the first and most comprehensive factory of -estle India. /et up in
2;48, it represents the core competence of -estle India in the
manufacture of milk products %?veryday, ilkmaid&, beverages, culinary
products %aggi sauces, noodles, soups etc.&, weaning cereals
%Cerelac& and infant milk formulae.
5/ C&o$di 0 Tmi$ Ndu34 The factory in Choladi started production in
2;45. /ituated about 47 miles from Calicut, the factory today has 32
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employees and produces 2. was also commissioned at
this factory. This factory employs 2:< people and is cited as a model interms of environment protection for its installations to purify waste
water as well as for its provisions for recycling coffee wastes.
8/Sm$%& 0Hr"!34 This factory was set up in 2;;6. ocated 57
kilometres from )elhi , it manufactures weaning cereals , culinary
products ,health beverages and milk products. $ecently the expansion
of manufacturing capacity for ilkmaid )essert ixes was undertaken
at this factory as this new and unique product category is viewed to
have great potential in the future.
9/Po!d 0Go34 This FitFat factory was set up in Boa in 2;;< at a
cost of $s.
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The construction work at this new factory is progressing with
speed. This factory will soon commence the manufacture of culinary
products, which is a key thrust area for the company and will include
latest technological improvements relating to this category of products.
As a part of -estles efforts towards continuous improvement and
excellence in anufacturing operation, a oga Improvement team
%IT& was put in place at the oga factory. The team comprised of
international experts from -estle Technical /ervices %-?/T?C& and thelocal staff. In 2;;4, it embarked on a program with the single minded
ob"ective of optimi'ing production costs while enhancing the product
quality so as to make -estle products even more competitive in the
market place. )rawing upon -estle#s global experience and
manufacturing expertise in 5< countries the team identified the
following areas for detailed study
*rocess improvement to ensure the optimal usage of resources
Improvement of operational efficiency
Cost optimi'ation
A series of small but critically important initiatives ranging from
redesigning laboratories to palletisation of raw materials and packaging
material utili'ation, manufacturing and filling loses and labour man
hours resulting in substantial savings and improved productivity and
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machine utili'ation. In addition, several non tangible benefits in the
form of systems for sustainable improvement in areas like factory
maintenance planning tools , down time recording systems and
performance measurement tools were also reali'ed .
This pro"ect was highly successful and the company is now
implementing its key learning#s of IT in its other factories.
In a country as vast and diverse as India, supp$" c&i!m!(eme!t is absolutely critical to rapid growth. Through !?CA,
-estle has concentrated heavily on streamlining and improving their
supply chain management in order to make it more dependable, more
cost effective and most importantly, more responsive to market needs.
+or better supply chain integration the planning of key
operations purchase, production, distribution and sales are
synchronised to ensure that everybody works towards a common
business plan. onthly ob"ectives are broken down into weekly and
%wherever necessary& into daily plans and monitored regularly to
ensure smooth implementation and quick corrective action when
needed . a"or benefits accrued thus far include reduction in working
capital through lower inventories of finished goods and materials,
better stock availability and reduction in obsolescence of materials.
In addition to traditional performance indicators, quantifiable
performance measures have been identified and implemented in all
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functional areas such as sales planning, production output, quality
assurance, material ordering transportation and warehouse
management. These measures are monitored regularly to gauge the
extent of improvement and identify root problems for taking corrective
actions.
Teams have been put in place at all factories and sales offices to
ensure the implementation is continuous and selfsustaining. Areas of
improvement are regularly identified and time bound action plansestablished. +or this purpose, standard tools such a Total Guality
anagement%TG&, Fai'en,
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Mr%eti!( Strte("
-estle has adopted a four pronged growth strategy(
2. Bunning the market with new products and brand extensions.
8. ?xpansion of the distribution network to small towns for extensive
availability.
6. $educe prices and introduce smaller packages for products to
make them more affordable %a tool to enter price sensitive markets&.
:. +ocus on employ training and develop a positive attitude through
enhanced manpower development.
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distribution set up , this gave rise to the following growth ob"ectives for
the year 8776
?nsure direct coverage of all urban towns in India.
?xpand distribution to reach 2 million retail outlets on a regular
basis.
Hork in partnership with the distributor for the achievement of theseob"ectives.
*rovide sustainable solution to optimi'e our secondary sales from
distributor to retailer.
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NE< PRODUCT LAUNCHES
To put all the product launches into perspective, -estle now has
37 products including various flavours and variants this awesome list of
37 products for most companies is an overfull palate. -estle India td.
/till have a variety of new products in the pipelines. It believes in
slowly coloni'ing as much territory as fast as it can, adapting to native
conditions and then work at holding off the advancing herdsE. -estle
products can be broadly classified into < main ranges
ilk *roducts
Chocolate and Confectionery
!everages
Culinary
+ood service
Mi$% Products
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This category which comprises of condensed milk, baby milk
foods , milk powders , acidified infant food , and other milk products,
showed a slump in 2;;4 as sale of milk products fell from $s 62.:
crores in 2;;< to $s 62.8 crores in the said year. Consumer offtake
remained depressed throughout this year as a consequence of high
price increases necessitated by substantial increases%>, backed by its tremendous
success in the Indian arket by adding *>> /pearmint to its
*ortfolio. This new flavour has also received an encouraging
response in the market according to market analysts.
ilkybar also retained its position as the number one white
chocolate brand in India, however it did not record a significant
increase in sales as a ma"ority of Indian tastes still do not accept this
flavour.
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This year however, was a year of tremendous success for Fit
Fat .This internationally renowned brand gained a large increase in the
arket share in the past year and -estle officials are hopeful that this
will further increase in the coming years. 0owever this !rand along
with it success has brought with it its share of Controversy as the @nion
of India has launched a itigation against the Fit Fat family pack.
In 2;;5 -estle added to its range of confectionery by
introducing /*A/0, A soft hearted, hard boiled sweet E this is beingpromoted as a sweet unique to India and is positioned to a target
audience in the age group of : to 28 years and anyone with a soft
heartE is a potential customer. *riced at $s. 2 for a 5.< gram candy
splash has been introduced selectively in the /outh and has been
speculated to repeat *olo#s performance. -estle#s officials claim that
this candy has the potential to grab a quarter of the 577 crores
confectionery market.
The most recent of -estle affairs with the confectionery market
has been the introduction of ithai agic which is a little ithai , a
little magic .This new product was launched in /eptember 2;;5 ,in
time for the )iwali purchases of sweets . This brand has been
positioned somewhere between chocolates and traditional sweets and
the company is employing a push strategy to promote this brand.
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;e+er(es
This year has been verysuccessful in the beverages market for
-estle .The sales of beverages has increased from $s 686.6 crores in
8778 to $s 6;3.3 crores in 8776.
-estles +lagship -escafe which was pegged at $upees 27:7
per Filogram before the launch of Tata Cafe, met with stiff competition
from Tata Cafe priced at $upees
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Cu$i!r" Products
The market in culinary products had witnessed a high growth
consequent to aggressive pricing decisions on existing products and
the introduction of a variety of new products to match the needs of the
Indian 0ousewife. ?ncouraged by this success -estle launched aggi
acoroni /nack in three flavors Chicken , asala and Tomato. -estle
officials# say that this would consolidate aggis position as the number
2 culinary brand in India. The product focuses on convenience and
innovation as its @nique /elling *roposition. This snack has opened a
new segment for the maggi brands. The brand is positioned as youthful
and is represented by the twists and curls of the macaroni snack. It is
speculated to be introduced in a phase manner nationwide to be
placed in the 5.< lakh outlets that aggi noodles sells in .
In the spirit of catering to Indian tastes aggi introduced maggi
pickles in five variants benchmarked to give the ghar ka swadE. aggi
)osa ix was also introduced to offer superior quality and added
convenience. Apart from this ilkmaid Falakand ix, a traditional north
Indian sweet of premium quality was added to the milkmaid dessert
mixes. aggi soup also launched three new variants. aggi $assam in
particular was noticeable as yet another attempt to make traditional
Indian cooking a little bit easier.
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)ood Ser+ice
+ood service items basically deal with the out of home
segments, which would include vending machines. -estle#s food
service business is poised for rapid expansion to meet the growing
need for such a reliable, time saving and cost effective service in this
modern age .
-estle wants to sell
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-estle to be a leader in the food industry, expanding the distribution
network for more retail outlets was a must.
To meet this challenge, -estle is working towards an ob"ective
of increasing the retail base to 2,777,777 outlets by the year 8776. This
network is feasible as -estle has a triangular distribution structure thus
the span of control is still retained. The )istribution -etwork is
explained in figure 8.
In order to achieve these distribution ob"ectives -estle has
formulated an international sales and marketing improvement team
%/IT&. /IT focuses on a single ob"ective provide sustainable
solutions to optimi'e the distributor and retailer sales through a step by
step approach starting with analysis of market followed by identification
of the probable retail outlets and finally selection of the same .The
team also focuses on proper implementation of resources and timely
follow ups for effective solutions.
Ad+ertisi!( Strte("
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-estle, a cash rich company has plenty of marketing prowess.
This can be credited to a strong and sound advertising strategy.
-estle in the year 8778 had an advertisement spending of $s
:6.6 crores %net& . Tracing -estles advertising responses the ad
campaign by 0TA of J0ot and /weet# was a runway success this ad
was actually meant to fend off a challenge from 0. 0ein'. The aggi
ranges of sauces were introduced in 2;3< but sales didn#t catch up
until 2;;7 but till 8776 it got considerable market share. At this pointthe popular and memorable campaign of aved affrey and *anka"
Fapoor was launched by *roducer *ralad Fakkar . This commercial
was an instant success. The volume of sales kept rising from an initial
growth of 26= to 87= in the next year. Today the sales figure for aggi
/auces is growing at a steady 4= per year.
Another noteworthy campaign was that of *>> %the mint with a
hole&, devised by udra advertising agency. This campaign was
awarded 22 industry ad awards.
In 8778 the advertisement budget has been approximately $s
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Training is an integral and indispensable part of Nestle . I regard the
importance of training a highly as research and development .It is a
maor investment in the !uture of the company and imperative because
it is an investment in people
" #r. $elmut #aucher
%hairman and %&O Nestle ' (
)roup
-estle India td. has an employee base of 67:7 people andaims to be in the top quartile of the +CB companies .+or this
purpose it follows a very stern and rigorous recruitment policy .
Recruitme!t Po$ic"
$ecruitment of fresh management trainees and sales officers is
done every Aprilay. These graduates are generally selected from the
best institutes in the country through a series of interviews. They are
then put through a probation period of 2823 months. Although -estle
does not offer some of the highest pay packets in the industry, it is
considered a growth oriented company.
Tri!i!( !d De+e$opme!t
Continuous development of skills and attitudes of employees is
critical to the achievement of excellence. At -estle therefore training
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and development of human resources is viewed as a long term
investment .
* I# "ou re p$!!i!( #or o!e "er = P$!t ,&et>
I# "ou re p$!!i!( #or te! "ers= p$!t tree>
I# "ou re p$!!i!( #or $i#e= tri! peop$e/-
? O$d C&i!ese pro+er2
This proverb goes with the organi'ations most enduring beliefs
worldwide
That long term planning is the key to -estles global success
That -estle#s most valuable assets are its people
-estle#s policy is to rely on a more decentrali'ed form of
management by building in the habit to Think -estleE.
At -estle India training and development is an integral part of
the business plan and strategy in line with the ob"ectives for the year
8776 and aims to
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0elp employees to retain long term perspective and integrate them
fully with the company#s business goals
1iew the growth of both the personnel and the company as a
continuous process .
Concentrate on attitudinal changes by developing leadership skills,
an appreciation of interdependence between units and the
enhancement of a sense of belonging to -estle .
In 8776 -estle India benefited greatly from the training program
offered at the $ive $eine International Training Center at 1evey,
/wit'erland. This training program helped facilitate the transfer of
common Fnowledge %technical, marketing, and finance& across the
-estle Broup and ensure interdisciplinary approach to learning and
uniform progress with a tailormade approach for all.
Company Training needs
analysis of training needs of anagers
self development programs for staff at 0>
programs for company orientation and information sharing
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programs aimed at computer training and computeri'ation
?stablishment of contact with leading management institutes with a
view to use the same for meeting local training requirements
Nest$e's Corporte Cu$ture
As we had discussed before, -estle is one of the most
multinational of multinationals and is spread over 5< countries
worldwide. This implies that it has employees from diverse cultural
backgrounds. -estle respects the distinctive culture, mentality and
traditions of every employee in every country. Hhat -estle aims at is to
incorporate its own culture into its employees without stifling the
individual employee#s culture and identity. Hhen we went to -estle we
could feel the existence of a distinctive work culture amongst the
management the staff seemed highly motivated D cheerful and
everybody had pin up boards in front of their tables with reminders ,
motivational messages and even time logs %the -estle people seemed
as if they availed of the benefits of time management& .
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Apart from this, -estle has a vast distribution network. In order
to support the !?CA process, an integrated computer system has been
put in place across the company to link all functional areas and
locations. This common linked system will improve information
availability, aid quick decisionmaking and improve supply chain
integration.
-estle has a diverse product range and so it also has diversified risks
Thus anagement on Information systems plays a vital role in -estle
to provide information to the /ales and arketing as well a the
finance department .The ?lectronic )ata *rocessing )epartment
looks after anagement Information /ystems .
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Nestle India Ltd., is a part of the Nestle SA group, which
is one of the largest manufacturing companies in the
world. The company (with its headquarters in Veey,
Swit!erland" was founded #y $enri Nestle in %&'.
Nestle has two ma)or diisions*Le Societe des Produits
which loo+s after the production and mar+eting and
Nesstec Ltd. which proides the technical assistance to
the group companies. Since its inception in %&', the
company has diersified i t product range from the infant
weaning formula (which was its f irst product" to
#eerages, confectionery, ice creams and pet foods
among others. In a span of %- years the company has
ran+ed 'th among the world/s largest corporations and
#oasts of a turnoer of 01&2.3 mil lion and an
employee strength of %,%11 people spread oer 3
countries worldwide (Anne4ure A".
Nestle has long #een iewed as one of the most
multinational of the multinationals. This is #ecause
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today only 5 of its turnoer comes from Swit!erland.
6ut of the remaining 2&5, 7urope contri#utes 1.35,
North and South America contri#ute '.35 and %&5 is
contri#uted #y Africa and Asia 8acific 9egions.
OVERVIEW
Although Nestle has #een associated with India since the
#eginning of the century through the importing and
trading of infant food and condensed mil+,
manufacturing in India only #egan with the setting up of
the factory in :oga in %2'. The first product to #e
manufactured was :il+maid. In the last 3 years the
company has shown rapid progress and has increased its
product range to &- products as of 6cto#er %22. Nestle
India Ltd. now ran+ ndamongst India/s most alua#le
companies (Anne4ure ;". Its gross reenue has
increased from 9s. %--%.% crores to 9s. %%.& crores in
%22'. This remar+a#le growth has #een achieed
through; and Fhase San#orn
roast and ground coffee #rands (=SA".
--' Acquisi tion of 8ower;ar.
Factories
Nestle has ' factories in India. These are
6 o"a 0#un7a82
The Nestle factory in :oga has the pride of #eing the
first and most comprehensie factory of Nestle India.
Set up in %2', it represents the core competence of
Nestle India in the manufacture of mil+ products
(7eryday, :il+maid", #eerages, culinary products
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(:aggi sauces, noodles, soups etc.", weaning cereals
(Ferelac" and infant mil+ formulae.
%6 C9oladi 0 Tamil Nadu2
The factory in Fholadi started production in %2'.
Situated a#out '- miles from Falicut, the factory today
has &% employees and produces %.35 of the total
turnoer of Nestle India. It is a %-- percent e4port
oriented unit which processes freshly pic+ed tea leaes
into solu#le instant tea.
:6 Nan7a"ud 0Karnata!a2
8roduction in this factory #egan in %2&2 with the
manufacture of Nestle instant coffee and Sunrise. Today
in addition to instant coffee the factory also
manufactures health #eerages. The plant to
manufacture :IL6 was also commissioned at this
factory. This factory employs %13 people and is cited as
a model in terms of enironment protection for its
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installations to purify waste water as well as for its
proisions for recycling coffee wastes.
;6Samala!9a 0+ar*ana2
This factory was set up in %22. Located - +ilometres
from elhi , it manufactures weaning cereals , culinary
products ,health #eerages and mil+ products. 9ecently
the e4pansion of manufacturing capacity for :il+maid
essert :i4es was underta+en at this factory as this new
and unique product category is iewed to hae great
potential in the future.
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The construction wor+ at this new factory is progressing
with speed. This factory wil l soon commence the
manufacture of culinary products, which is a +ey thrust
area for the company and will include latest
technological improements relating to this category of
products.
As a part of Nestles efforts towards continuous
improement and e4cellence in :anufacturing operation,
a :oga Improement team (:IT" was put in place at the
:oga factory. The team comprised of international
e4perts from Nestle Technical Serices (N7ST7F" and the
local staff. In %22', it em#ar+ed on a program with the
single minded o#)ectie of optimi!ing production costs
while enhancing the product quality so as to ma+e
Nestle products een more competitie in the mar+et
place. rawing upon NestleEs glo#al e4perience and
manufacturing e4pertise in 3 countries the team
identified the following areas for detailed study *
8rocess improement to ensure the optimal usage of
resources
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Improement of operational efficiency
Fost optimi!ation
A series of small #ut critically important initiaties
ranging from redesigning la#oratories to palletisation of
raw materials and pac+aging material uti li!ation,
manufacturing and filling loses and la#our man hours
resulting in su#stantial saings and improed
productiity and machine utili!ation. In addition, seeral
non tangi#le #enefits in the form of systems for
sustaina#le improement in areas li+e factory
maintenance planning tools , down time recording
systems and performance measurement tools were also
reali!ed .
This pro)ect was highly successful and the company is
now implementing its +ey learningEs of :IT in its other
factories.
In a country as ast and dierse as India, su##l* c9ain
mana"ement is a#solutely critical to rapid growth.
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Through ;7FA, Nestle has concentrated heaily on
streamlining and improing their supply chain
management in order to ma+e it more dependa#le, more
cost effectie and most importantly, more responsie to
mar+et needs.
?or #etter supply chain integration the planning of +ey
operations * purchase, production, distri#ution and sales
are synchronised to ensure that eery#ody wor+s
towards a common #usiness plan. :onthly o#)ecties are
#ro+en down into wee+ly and (whereer necessary" into
daily plans and monitored regularly to ensure smooth
implementation and quic+ correctie action when needed
. :a)or #enefits accrued thus far include reduction in
wor+ing capital through lower inentories of finished
goods and materials, #etter stoc+ aaila#il ity and
reduction in o#solescence of materials.
In addition to tradit ional performance indicators,
quantifia#le performance measures hae #een identified
and implemented in all functional areas such as sales
planning, production output, quality assurance, material
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ordering transportation and warehouse management.
These measures are monitored regularly to gauge the
e4tent of improement and identify root pro#lems for
ta+ing correctie actions.
Teams hae #een put in place at all factories and sales
offices to ensure the implementation is continuous and
self*sustaining. Areas of improement are regularly
identified and time#ound action plans esta#lished. ?or
this purpose, standard tools such a Total Jual ity
:anagement(TJ:", Cai!en, 3S and Small @roup
improement actiity (S@IA" are #eing e4tensiely used.
The efficacy of this hierarchical structure is seen in
NestleEs performance oer past few years of arious
products.
;y %2&2 the company had achieed a sales figure of
appro4imately 9s. 3& crores. %2&2 was the year of
launches. Seen new product lines were launched in this
year. This was also the year in which the Nan)agud
factory was set up. ;y the year %22, this sales figure
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was touching 9s 3-- crores. In the %22-Es the pace of
launches quic+ened and since the construction of the
factory at Samala+ha, - new products hae #een
introduced. ;y %22', Nestle had a#out ' different
products in its portfolio with arious new products in the
pipeline as well. The sales figure now touched 9s. %%1
crores. Thus sales grew #y 13-5 oer a period of one
and a half decades.
3
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TO,.Y NESTLE IS PRESENT IN ,I$$ERENT
.RKETS WIT+ T+E $OLLOWIN5 .IN BR.N,S
Solu8le co((ee
Nescafe, Taster/s Fhoice, 9icore, 9icoffy.
Roast and 5round Co((ee
$ills ;ros., :>;, ;on+a, Koegas, Loumidis
ineral Water
8errier, Fontre4, Vittel, Valert, Jue!ac, Arrowhead,
8oland Spring, ;u4ton, Vera, ;laue Juellen, Falistoga,
Santa :aria, San 8ellegrino.
Ot9er 8e-era"es
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,air* Product
Nido, Nespray, Farnation, :il+maidG La Lechera, @loria,
Neslac, ;arenmar+e.
Brea!(ast Cereals
Nestle
Co((ee Creamers
Foffee*mate
In(ant $oods and ,ietetic Products
Nestle, Nan, Lactogen, Ferelac, Nestum, @uigo!
Culinar* Products 0Bouillons) sou#s) seasonin"s)
#re#ared dis9es) canned (ood) #asta) sauces2
:aggi, Frosse and ;lac+well, Li##y/s, Thomy, ;uiltoni,
Fontadina
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$ro=en $oods
?indus, Stouffer/s ;uitoni, :aggi
Ice Cream
Nestle, ?risco, airy ?arm, :agnolia, :otta, Famy , ect.
Re(ri"erated Products 0*o"urts) desserts) #asta
sauces2
Nestle, Locatelli, Vismara, ;uitoni, Fontadina
C9ocolate and Con(ectioner*
Nestle, Frunch, Fail ler, ?r igor, Fho+ito, Sarott i,
@ala+G:il+y#ar, es, Cit Cat, Juality Street, Smarties,
;aci, After 7ight, ;a#y 9uth, ;utterfinger, Lion, Nuts,
9olo, Aero, 8olo, etc.
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$ood Ser-ices and Pro(essional Products
Fhef, aigel, Santa 9ica
Pet Care
?ris+ies, ?ancy ?east, Aplo, :ighty og, @ourmet.
S#eciali=ed #roducts (or t9e (ood industr*
?ood Ingredients Specialties (?IS"
O#9t9almolo"ical #roducts
Alcon
Cosmetics
L/6real
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NEW PRO,>CT L.>NC+ES
To put all the product launches into perspectie, Nestle
now has &- products including arious flaors and
ariants this awesome list of &- products for most
companies is an oerfull palate. Nestle India Ltd. still
has a ariety of new products in the pipel ines. It
#eliees in slowly coloni!ing as much territory as fast as
it can, adapting to natie conditions and then wor+ at
/$olding off the adancing herds/. Nestle products can #e
#roadly classified into 3 main ranges