PROFILE OF THE COMPANY Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today

the world's biggest food and beverage o!"any# Sales at the end of $%%& were 'H( 8) bn, with a net "rofit of 'H( 6#) bn# *e e!"loy around $&),%%% "eo"le and have fa tories or o"erations in al!ost every ountry in the world#

+he 'o!"any's strategy is guided by several funda!ental "rin i"les# Nestl's e,isting "rodu ts grow through innovation and renovation while !aintaining a balan e in geogra"hi a tivities and "rodu t lines# -ong.ter! "otential is never sa rifi ed for short.ter! "erfor!an e# +he 'o!"any's

"riority is to bring the best and !ost relevant "rodu ts to "eo"le, wherever they are, whatever their needs, throughout their lives# BACKGROUND Nestle was "ro!oted by Nestle /li!entana, Switzerland, a wholly owned subsidiary of Nestle Holdings -td#, Nassau, 0aha!a 1slands# Nestle is one of the oldest food 2N' o"erating in 1ndia, with a "resen e of over a entury# (or a long ti!e, Nestle 1ndia3s o"erations were restri ted to i!"orting and trading of ondensed !il4 and infant food# 5ver the years, the 'o!"any e,"anded its "rodu t range with new "rodu ts in instant offee, noodles, sau es, "i 4les, ulinary aids, ho olates and onfe tionery, dairy "rodu ts and !ineral water# Nestle was in or"orated as a li!ited o!"any in 1676# 1n 16)8, the

'o!"any issued shares to the 1ndian "ubli to redu e its foreign holdings to &%8# 1ts na!e was hanged fro! (oods S"e ialties -td# to the urrent na!e in 1681#+he "arent held 718 sta4e in the o!"any as at $%%% end# 1t has (190 a""roval to hi4e sta4e by 1%8 and has been gradually a quiring shares fro! the o"en !ar4et# 9arent sta4e in the o!"any as at $%%1 end stood at 7:#88# +he "arent "lans to ontinue hi4ing sta4e through o"en !ar4et "ur hases#

Nestle India -td, 718 subsidiary of Nestle S/, is a!ong the leading branded food "layer in the ountry# 1t has a broad based "resen e in the foods se tor with leading !ar4et shares in instant offee, infant foods, !il4 "rodu ts and noodles# 1t has also strengthened its "resen e in ho olates,
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onfe tioneries and other se!i "ro essed food "rodu ts during the last few years# +he o!"any has laun hed ;airy 9rodu ts li4e <H+ 2il4, 0utter and 'urd and also ventured into the !ineral water seg!ent in $%%1# Nestle3s leading brands in lude Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life#

PLANT LOCATIONS Nestle started its !anufa turing o"erations with 2il4!aid in 166$ at 2oga fa tory# 2anufa turing of Nes afe started in 166& at the sa!e fa tory# +he o!"any set u" another fa tory at 'hera!badi in +a!il Nadu, for !anufa ture of infant foods, offee et # (or al!ost two de ades there were no new additions of !anufa turing fa ilities due to restri tive "oli y environ!ent# +he o!"any set u" its Nan=angad >?arnata4a@ fa tory in 1686 and the Sa!la4ha >Haryana@ fa tory in 166$# +he 9onda >Aoa@ fa tory started o"erations in 1667# +he 'o!"any set u" its si,th !anufa turing unit in 166) at 0i holi! in Aoa

BUSINESS PRINCIPLES Sin e Henri Nestl develo"ed the first !il4 food for infants in 186), and saved the life of a neighbor3s hild, the Nestl 'o!"any has ai!ed to build a business based on sound hu!an values and "rin i"les#

*hile our Nestl 'or"orate 0usiness 9rin i"les will ontinue to evolve and ada"t to a hanging world, our basi foundation is un hanged fro! the ti!e of the origins of the 'o!"any, and refle ts the basi ideas of fairness, honesty, and a general on ern for "eo"le#

People i!st B!"loyees, "eo"le and "rodu ts are !ore i!"ortant at Nestl than syste!s# Syste!s and !ethods, while ne essary and valuable in running a o!"le, organization, should re!ain !anagerial and o"erational aids but should not be o!e ends in the!selves# 1t is a question of "riorities# / strong orientation toward hu!an beings, e!"loyees and e,e utives is a de isive, if not the de isive, o!"onent of long.ter! su ess# "#alit$ p!od#%ts 5ur fo us is on "rodu ts# +he ulti!ate =ustifi ation for a o!"any is its ability to offer "rodu ts that are a""ealing be ause of their quality, onvenien e, variety and "ri e .. "rodu ts that an stand their ground even in the fa e of fier e o!"etition#
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Lon&'te!( )ie* Nestl !a4es onfli ts and lear a distin tion between strategy and ta ti s# 1t gives ontentions a!ong grou"s .. this a""lies to e!"loy!ent

"riority to the long.range view# -ong.ter! thin4ing defuses !any of the onditions and relations with e!"loyees as well as to the onfli ts and o""osing interests of the trade and the industry# 5f ourse, our ability to fo us on long.ter! onsiderations is only "ossible if the o!"any is su essful in the struggle for short.ter! survival# +his is why Nestl strives to !aintain a satisfa tory level of "rofits every year# De%ent!ali+ation Switzerland is ho!e to Nestl's Swiss subsidiary, its international headquarters and the registered offi e of Nestl's holding o!"any, but Nestl does not regard its Swiss headquarters as the enter of the universe# ;e entralization is a basi "rin i"le of Nestl# 5ur "oli y is to ada"t as !u h as "ossible to regional ir u!stan es, !entalities and situations# 0y de entralizing o"erational res"onsibility, we reate strength and fle,ibility and are able to !a4e de isions that are better attuned to s"e ifi situations in a given ountry# 9oli ies and de isions on erning "ersonnel, !ar4eting and "rodu ts are largely deter!ined lo ally# +his "oli y reates stronger !otivation for Nestl's e,e utives and e!"loyees and a greater sense of identifi ation with Nestl's business# 1t is not Nestl's "oli y to generate !ost of its sales in Switzerland, su""le!ented by a few satellite subsidiaries abroad# Nestl strives to be an CinsiderC in every ountry in whi h it o"erates, not an Coutsider#C

Uni o!(it$ / very i!"ortant on ern at Nestl has to do with unifor!ityD how ountry,

onsistent Nestl's "rin i"les, "oli ies, rules of ondu t and strategies should be, and to what e,tent they should differ de"ending on the subsidiary, region, bran h or grou" of "rodu ts# 1n general, Nestl tries to li!it the unifor!ity of its "oli y to a requisite !ini!u!# +his !ini!u! is then syste!ati ally enfor ed, unless there are o!"elling reasons in a given !ar4et that =ustify deviation fro! "oli y# Di)e!si i%ation Nestl does not want to be o!e either a onglo!erate or a "ortfolio

!anager# Nestl wants to o"erate only those businesses about whi h it has so!e s"e ial 4nowledge and e,"ertise# Nestl is a global o!"any, not a onglo!erate hodge"odge# *e regard a quisitions and efforts at diversifi ation as logi al ways to su""le!ent our business, but only in the onte,t of a arefully onsidered or"orate !ar4eting "oli y# Nestl is o!!itted to the following 0usiness 9rin i"les in all ountries, ta4ing into a ount lo al legislation, ultural and religious "ra ti esD

Nestl's business ob=e tive is to !anufa ture and !ar4et the 'o!"any's "rodu ts in su h a way as to reate value that an be sustained over the long ter! for shareholders, e!"loyees, onsu!ers, and business "artners# Nestl does not favor short.ter! "rofit at the e,"ense of su essful long.ter! business develo"!ent#

Nestl re ognizes that its onsu!ers have a sin ere and legiti!ate interest in the behavior, beliefs and a tions of the 'o!"any behind brands in whi h they "la e their trust and that without its onsu!ers the 'o!"any would not e,ist# Nestl believes that, as a general rule, legislation is the !ost effe tive safeguard of res"onsible ondu t, although in ertain areas, additional guidan e to staff in the for! of voluntary business "rin i"les is benefi ial in order to ensure that the highest standards are !et throughout the organization# Nestl is ons ious of the fa t that the su ess of a or"oration is a refle tion of the "rofessionalis!, ondu t and the res"onsible attitude of its !anage!ent and e!"loyees# +herefore re ruit!ent of the right "eo"le and ongoing training and develo"!ent are ru ial# Nestl ontinues to !aintain its o!!it!ent to follow and res"e t all a""li able lo al laws in ea h of its

Resea!%, and de)elop(ent +he Nestl resear h and develo"!ent enters have two !ain tas4sD to reate new "rodu ts and !anufa turing "ro esses and to i!"rove those that already e,ist# +hese enters "lay a 4ey role in "rodu t safety and quality and also have their role in onserving resour es and "rote ting the environ!ent# Bnviron!ental on erns are an integral "art of any develo"!ent "ro ess to ensure that our future o!!er ial o"erations !eet the desired riteria# +he Nestl Eesear h 'enter "rovides the s ientifi su""ort needed to

"revent and solve environ!ental "roble!s arising in the develo"!ent grou"s as well as !anufa turing# 1n addition, studies are arried out to find
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new ways of using industrial residues to reate valueadded by"rodu ts# +his will redu e total e!issions and effluents# +he Nestl develo"!ent enters "re"are environ!ental i!"a t studies for new "rodu ts and !anufa turing "ro esses# +hese over all as"e ts, fro! raw !aterials, through "ro essing, to the final "a 4ed "rodu t# +hese analyses "rovide additional ele!ents for use in de iding whether to o!!er ialize a new "rodu t, or to introdu e a new or !odified "ro ess# Fo!esi&,t /t "resent, the world fa es daunting questions about its ability to "rovide enough wholeso!e food for everyone# 2alnutrition and "oor eating habits are still serious "roble!s in !any develo"ing ountries# 0y $1%%, the world's "o"ulation will double# *ill it be "ossible to feed a world with so !any inhabitantsF /t Nestl, the big "i ture is all about feeding the world and "roviding food and nutrition for an ever.growing "o"ulation# 5ur res"onse to this situation is to intensify resear h, strive for innovations and i!"rove quality# Fle-i.ilit$ and si(pli%it$ +he "ubli 's sense of the "ower and size of a or"oration is often ina urate, for a o!"any's "ower is li!ited by a host of fa tors in luding legislation, o!"etition, regulatory bodies and "ubli ity# (ro! a business "oint of view, it is desirable for a fir! to a hieve the size best suited to a s"e ifi industry or !ode of "rodu tion# +o be o!"etitive internationally and !a4e signifi ant invest!ents in resear h and te hnology, a larger o!"any has an advantage# (ro! a stri tly organizational "oint of view, fle,ible, si!"le
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stru tures wor4 best and e, essively large units should be avoided whenever "ossible# 1n both res"e ts Nestl has a natural advantageD /lthough it is a big o!"any, it is s"read out over !any ountries and ea h of Nestl's fa tories has its own !anage!ent and res"onsibility# Handlin& o !a* (ate!ials +he Nestl Arou" is in "rin i"le not dire tly involved in "ri!ary "rodu tion of raw !aterials and other food ingredients# 1n general we use lo ally available raw !aterials and "ur hase the! either dire tly fro! "rodu ers or through e,isting trade hannels# Eaw !aterials have to !eet learly established quality riteria and are he 4ed for "ossible onta!inants in luding environ!ental onta!inants# 5ur "ur hasing s"e ifi ations o!"ly not only with legal require!ents but go further to ensure highest safety and wholeso!eness of our "rodu ts# *henever "ossible we give "referen e to those goods for whi h environ!ental as"e ts have been ta4en into onsideration# 1n those ases where the required agri ultural raw !aterials are not available lo ally, but the natural "rodu tion onditions e,ist, we en ourage lo al "rodu tion and "rovide assistan e for ultivation and dairy far! !anage!ent# *e su""ort "lant growing and livesto 4 husbandry !ethods whi hD

"reserve and i!"rove natural soil "rodu tivity and e ono!ize and "rote t water resour es allow the lowest, !ost a""ro"riate and safe use of agro. he!i als use the least energy#

Pa%/a&in& 2anufa turing o!"rises all unit o"erations ne essary to transfor!

"erishable raw !aterials into finished "rodu ts, with the ai! to !a4e the! safe and onvenient for the onsu!ers# +he !anufa turing a tivities of the Nestl Arou"D

res"e t natural resour es by effi ient use of raw !aterials and energy !ini!ize waste generation and e!issions ensure environ!entally safe dis"osal of all waste whi h annot be re y led#

Eegular assess!ents of "ro essing "ra ti es are assess!ents in ludeD

arried out# +hese

evaluation of individual "lant "erfor!an e with regard to o"erations whi h have an i!"a t on the environ!ent definition of targets for i!"rove!ent review of "lant o!"lian e with lo al govern!ent regulations, o!"any environ!ental standards, as well as results a hieved in o!"arison with targets for i!"rove!ent full investigation of in idents whi h !ay affe t the environ!ent#

1nfor!ation on develo"!ents in environ!ental "rote tion te hnology and "ra ti es is disse!inated as required to ensure that all "lants are using the !ost effe tive environ!ental "ra ti es for their ty"e of "ro essing# +his a""lies also for o "a 4ers# Ma!/etin& and dist!i.#tion

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2ar4eting is based on the "rin i"le of satisfying onsu!er needs# +his is the foundation also for the environ!ental !ar4eting a""roa h of Nestl# Bnviron!ental "rodu t lai!s in advertising, "ro!otional !aterial and on "a 4aging are in a ordan e with legal require!ents, based on solid s ientifi eviden e and used in a serious and reasonable !anner# 5ur ai! is to !ini!ize wastage in !ar4eting a tivities# 'onsu!er "ro!otions and !er handising !aterial su h as onsu!er offers, instore "ro!otions, dis"lay !aterial, leaflets, "rinted !atter, et # ta4e environ!ental as"e ts into a ount# +his !eans due onsideration of environ!ental i!"a t in sele ting both !aterials and "rinting !ethods# 1n distribution, energy effi ient and "ollution en ouraged wherever "ossible# In o!(ation0 %o((#ni%ation and ed#%ation Nestl's "oli y is designed to "rovide orre t and oherent infor!ation on the a tivities of the Arou"# / tivities related to the environ!ent benefit fro! the sa!e treat!ent and their o!!uni ation is se ured through all urrently available !eans inside and outside the Arou"# ontrolled !ethods are o!!uni ation, "ubli ity and

"ro!otional !aterial, in "arti ular through !ore "re ise targeting of

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1t is further!ore Nestl's duty to reate awareness, to train and !otivate e!"loyees on their "ersonal res"onsibility with regard to the "rote tion of the environ!ent# Le&islation and !e&#lations 1t is the "oli y of the Nestl Arou" to stri tly o!"ly with all laws and regulations relevant to our a tivities# *e "arti i"ate in dis ussions on food legislation and regulations between international organizations, govern!ent re"resentatives, industry, the s ientifi world and onsu!er asso iations# *e also a""ly this "oli y to environ!ent related !atters# 1n doing so, we oo"erate with legislators through lo al industry asso iations in order to "ro!ote laws and regulations in the field of environ!ent whi h are reasonable, rational, realisti , a""li able and enfor eable# *e o""ose un=ustified bans and any other dis ri!inatory !easures# *e favor the har!onization of food regulations in order to re!ove e,isting trade barriers and to avoid the reation of new ones# +his a""lies also to environ!ental issues# *e favor the e, hange of infor!ation, of e,"erien e and of 4nowledge between the various interested "arties# +han4s to all these synergies, we an ontribute to valuable dis ussions and be re ognized as an a tive "artner in hel"ing authorities to for!ulate o!"rehensive strategies in the field of the environ!ent# THE NESTL1 POLICY ON THE EN2IRONMENT

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Nestl res"e ts the environ!ent and is o!!itted to environ!entally sound business "ra ti es throughout the world, thus ta4ing into a ount the need to "reserve natural resour es and save energy# +his o!!it!ent is "ut into "ra ti e by onsidering lo al legal require!ents as a !ini!u! standard# 1f these do not e,ist, our internal rules, ad=usted to lo al onditions, a""ly# Eesear h and ;evelo"!ent and new invest!ents in lude an evaluation to ensure environ!entally a""ro"riate "rodu ts, "a 4aging and "ro esses# 2anage!ent and "ersonnel within the Nestl organization worldwide are en ouraged to hel" resolve environ!ental "roble!s within their own s"here of influen e#

NESTLE3S BRANDS Guality and nutritional value are the essential ingredients in all of the nestle3s brands# 2illions of "eo"le "refer Nestl "rodu ts every day, ha""y with the addition to their wellness that they bring# 1f you are loo4ing for a
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s"e ifi brand our "rodu t, =ust use the al"habeti al inde, below to =u!" straight to a listing# 5r you an e,"lore by ategory#

Ba.$ Foods

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+he "rodu tion of infant food goes right ba 4 to the origins of the Nestl 'o!"any# Henri Nestl's '(arine -a te' was the first "rodu t to bear the Nestl na!e#

1n 186) a "hysi ian "ersuaded Henri Nestl to give his "rodu t to an infant who was very ill H he had been born "re!aturely and was refusing his !other's !il4 and all other ty"es of nourish!ent# Nestl's new food wor4ed, and the boy survived# (ro! the very beginning, Nestl's "rodu t was never intended as a o!"etitor for !other's !il4# 1n 1866, he wroteD C;uring the first !onths, the !other's !il4 will always be the !ost natural nutrient, and every !other able to do so should herself su 4le her hildren#C +he fa tors that !ade baby foods su ess in the early days of the Nestl o!"any H quality and su"erior nutritional value H are still as valid today for the wide range of infant for!ula, ereals and baby food !ade by Nestl# +he *orld Health 5rganization >*H5@ re ognizes that there is a legiti!ate !ar4et for infant for!ula, when a !other annot or hooses not to breast feed her hild# Nestl !ar4ets infant for!ula a ording to the "rin i"les and ai!s of the *H5 1nternational 'ode of 2ar4eting 0reast 2il4 Substitutes, and see4s dialogue and oo"eration with the international health o!!unity and in "arti ular with the *H5 and <N1'B(, to identify "roble!s and their solution# Nestl's e,"ertise as the world's leading infant food !anufa turer,

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gained over !ore than 1$7 years, is "ut at the dis"osal of health authorities, the !edi al "rofession and !others and hildren everywhere# C,o%olate 4 Con e%tione!$ +he story of ho olate began in the New *orld with the 2ayans, who dran4 a dar4 brew alled a ahuaqu htl# -ater, the /zte s onsu!ed ha ahoua and used the o oa bean for urren y# 1n 17$:, they offered o oa beans to 'ortez, who introdu ed ho olate to the 5ld *orld, where it swiftly be a!e a favorite food a!ong the ri h and noble of Buro"e# Nestle forayed into ho olates I onfe tionery in 166% and has ornered a fourth share of the ho olate !ar4et in the ountry## 1t has e,"anded its "rodu ts range to all seg!ents of the !ar4et +he Kitkat brand is the largest selling ho olate brand in the world# 5ther brands in lude Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One, Munch et # +he sugar onfe tionery "ortfolio onsists of Polo, oothers, !rootos and Milkybar "clairs# /ll sugar onfe tionery "rodu ts are sold under the u!brella brand $llen%s# Nestle has also !ar4ets so!e of its i!"orted brands li4e &uality treet, Lions and $fter "ight# New laun hes su h as Nestle Choco tick and Milky Bar Choo at attra tive "ri e "oints to woo new onsu!ers# 'ho olate onfe tionery sales registered a strong $1#78 yoy growth in $%%1 aided by good volu!e growth in Munch, Kitkat and Classic sales# Nestle relaun hed Bar-One during the year#

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(ro! the beginning, turning raw, bitter o oa beans into what one 1)th entury writer alled Cthe only true food of the godsC has been a fine art, a deli ate !i,ture of al he!y and s ien e# I%e C!ea( +here are !any !yths and stories as to the invention of i e rea!D was it 2ar o 9olo who brought it ba 4 fro! 'hina >along with "asta@F 9robably not, onsidering he !ost li4ely never visited 'hina# +he story of its "o"ularity is however onne ted with the invention of te hnology to !a4e it on an industrial s ale, and to 4ee" it old on e !ade# 0efore refrigeration te hniques, food was frozen with the aid of i e, !i,ed with salt, whi h was either stored in i e houses or shi""ed fro! old ountries# 0ut then at the end of the 16th entury, both !a4ing and freezing it be a!e easier, and together with the invention of the i e rea! one, !ade the "rodu t boo!# +oday, the <nited States is the absolute leader in ter!s of volu!e onsu!ed, but the highest "er head onsu!ers are in New Jealand# (lavors you'd never have thought of and yet they're o!!er ially availableD

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Sorbets . S!o4ed Sal!on, +o!ato, 'u u!ber 1 e 'rea!s . Aarli , /vo ado, Sweet orn#

+he i e rea! one is the !ost environ!entally friendly for! of "a 4aging# / Syrian fro! ;a!as us, Brnest B Ha!wi is redited with its invention# /""arently, during the 16%& St -ouis *orld's (air, his waffle booth was ne,t to an i e rea! vendor who ran short of dishes# Ha!wi rolled a waffle to ontain i e rea! and the one was born# P!epa!ed Foods 'onvenien e foods H "a 4aged sou"s, frozen !eals, "re"ared sau es and flavorings Hdate ba 4 !ore than a entury# *ith the 1ndustrial Eevolution a!e fa tory =obs for wo!en and less ti!e to "re"are !eals# +he "roble! was so wides"read that it be a!e the ob=e t of intense study in 188$ by the Swiss 9ubli *elfare So iety, whi h offered a series of re o!!endations, in luding an in rease in the onsu!"tion of vegetables# +he So iety o!!issioned Kulius 2aggi, a !iller with a re"utation as an inventive and a"able business!an, to reate a vegetable food "rodu t that would be qui 4 to "re"are and easy to digest# +he results H two instant "ea
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sou"s and an instant bean sou" H hel"ed laun h one of the best 4nown brands in the history of the food industry# 0y the turn of the entury, 2aggi I 'o!"any was "rodu ing not only "owdered sou"s, but bouillon ubes, sau es and flavorings#

#Ma&&i !erged with Nestl in 16&)# B#itoni, the authenti 1talian brand, whi h has been "rodu ing "asta and sau es in 1taly sin e 18$), be a!e "art of the Nestl Arou" in 1688#

Be)e!a&es 0everages li4e offee, tea and health drin4s ontribute to about :%8 of Nestle3s turnover# 0everage sales registered a 178 yoy growth during $%%1# *hile about 1&8 of sales o!e fro! do!esti !ar4et, e,"orts ontribute to about 168 of sales#

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Nestle's Nescafe do!inates the "re!iu! instant offee seg!ent# Nestle3s other offee brand unrise has also been relaun hed under the Nescafe !ar4et through "ri e uts and "rodu t fran hise to leverage on the e,isting equity of the brand# Nestle has fo used on e,"anding the do!esti re"ositioning# However it has been losing share in the do!esti !ar4et, where it has a :)8 !ar4et share# Milo, a brown.!alted beverage was laun hed in 1666# 1t has an esti!ated volu!e share of about :8 in the !alted food drin4 seg!ent# Nestle has laun hed non. arbonated beverages su h as Nestea 'ce( )ea and Nescafe !ra**e during $%%1# Nestle is one of the largest offee e,"orter in the ountry# ?ey e,"ort !ar4et is Eussia, besides Hungary, 9oland and +aiwan# Nestle has re eived an award for highest e,"ort of instant offee and highest e,"ort of offee to Eussia and '1S for (L%% and (L%1# +urnover ontribution fro! e,"orts registered a 1)#78 volu!e growth in (1$M%1# Nes afe sales to Eussia a ounts for 8%8 >Es$#7bn@ of Nestl3s Es:bn e,"ort turnover# old

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"UALITY Bveryday, !illions of "eo"le all over the world show their onfiden e in us by hoosing Nestl "rodu ts# +his onfiden e is based on our quality i!age and a re"utation for high standards that has been built u" over !any years# "#alit$ is t,e %o!ne!stone o o#! s#%%ess Bvery "rodu t on the shelf, every servi e and every usto!er onta t hel"s to sha"e this i!age# / Nestl brand na!e on a "rodu t is a "ro!ise to the usto!er that it is safe to onsu!e, that it o!"lies with all regulations and that it !eets high standards of quality# 'usto!ers e,"e t us to 4ee" this "ro!ise every ti!e# <nder no ir u!stan es will we o!"ro!ise on the safety of a "rodu t and every effort !ust be !ade to avoid hazards to health# -i4ewise, o!"lian e with all relevant laws and regulations is a !ust and is not negotiable# 9eo"le, equi"!ent and instru!ents are !ade available to ensure safety and onfor!ity of Nestl "rodu ts at all ti!es# +he effort is worth it# 'o!"anies with huge quality standards !a4e fewer !ista4es, waste less ti!e and !oney and are !ore "rodu tive# +hey also !a4e higher "rofits# Guality is their !ost su essful "rodu t# 1t is the 4ey to their su ess, today and to!orrow# T,e %#sto(e! %o(es i!st Nestle want to win and 4ee" usto!ersD distributors, su"er!ar4ets, hotels, sho"4ee"ers and the final onsu!ers# +hey have very different require!ents# +rade usto!ers e,"e t e, ellent servi e, orre t infor!ation and ti!ely delivery# 'onsu!ers onsider taste, a""earan e and "ri e when they !a4e
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their hoi e# 1ts tas4 is to understand what usto!ers want and res"ond to their e,"e tations ra"idly and effe tively# *e serve various grou"s of onsu!ers and there is de!and for "rodu ts at different levels of "er eived quality and "ri e# /ll usto!ers, however, e,"e t value for their !oney N good quality at a reasonable "ri e#

*hen offering quality to usto!ers we also !ean environ!ental quality# Nestl shares so iety3s on ern for the environ!ent and is o!!itted to environ!entally and "referen es# sound business "ra ti es throughout the world# 'usto!ers are entral to their business and they always res"e t their needs

Co(petition 0aby food and 1nstant offee are ategories where brand loyalties are very strong and Nestle is the !ar4et leader# H-- is a signifi ant o!"etitor to Nestle in instant offeeO while Heinz is the !ain o!"etitor in the baby foods !ar4et# +he !ar4et for ulinary "rodu ts, se!i."ro essed foods su h
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as noodles, ready !i,es for 1ndian ethni brea4fast and sweets, is largely an urban !ar4et# H-- and 1ndo Nissin (oods are the !ain o!"etitors in these "rodu t seg!ents# Nestle has also a hieved a signifi ant $78 share in the ho olateM onfe tionery !ar4et# +he o!"any has re ently e,"anded its dairy "rodu ts "ortfolio to in lude, !il4, urd and butter# +he o!"any also forayed into the bottled water seg!ent with the laun h of its Perrier brand in the "re!iu! !ineral seg!ent and Pure Life in the "urified water seg!ent# "#alit$ is a %o(petiti)e ad)anta&e *e live in a o!"etitive world and !ust never forget that their usto!ers have a hoi e# 1f they are not satisfied with a Nestl "rodu t, they will swit h to another brand# +heir goal, therefore, is to "rovide su"erior value in every "rodu t ategory and !ar4et se tor in whi h we o!"ete# +he "ursuit of highest quality at any "ri e is no guarantee for su ess, nor is a single. !inded ost. utting a""roa h# -asting o!"etitive advantage is gained fro! a balan ed sear h for o"ti!al value to usto!ers, by si!ultaneous o!"etitors# 1f they do i!"rove!ent of quality and redu tion ost# Su ess an never be ta4en for granted# *e !ust wat h and learn fro! our o!"etitive advantage through Guality# "#alit$ is a 5oint e o!t 5"erating o!"anies are fully res"onsible for !aintaining agreed quality standards# Not only 9rodu tion units, but also 2ar4eting, 9ur hasing, ;istribution and Sales have a vital role to "lay in "roviding quality to so!ething better, we !ust i!"rove our own "erfor!an e# *e an a hieve

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usto!ers# +his i!"lies a thorough 4nowledge of the "rodu ts and servi es we offer# Guality units at different levels of the organization "rovide s"e ifi su""ort, "ro!ote quality awareness, assu!e guardianshi" and audit the syste!# Guality de"art!ents !onitor o"erations against agreed standards and !ust intervene in ase of non. onfor!ity# Guality "oli y and "rin i"les, the !andatory standards and the re o!!ended tools for i!"le!entation are laid down in the Nestl Guality Syste! whi h is a""li able throughout the grou"# (urther dire tions are given through instru tions, nor!s and guidelines, often s"e ifi to a "rodu t# 5ur business "rodu ts, su h as raw !aterial "rodu ers, "a 4aging su""liers, ontra t !anufa turers and distributors are e,"e ted to share our on ern for Guality# +hey too !ust set u" an adequate quality syste!, so as to !eet our require!ents onsistently# +he quality efforts !ust be shared by every fun tion and de"art!ent in the o!"any as well as our business "artners# "#alit$ is (ade .$ people /dequate equi"!ent, "ro edures and syste!s are needed to !a4e GualityO so are involved and dedi ated "eo"le# Ba h and every Nestl e!"loyee !ust do his best to "rovide quality "rodu ts and servi es# +raining and tea!wor4 are ru ial to the su essful i!"le!entation of high quality standards# 'ontinuous training ensures that everyone understands his tas4s and has the ne essary s4ills to arry the! out# +ea!wor4 allows us to a hieve results that are greater than the su! of individual efforts# *e !otivate e!"loyees by de!onstrating !anage!ent o!!it!ent to Guality, by setting hallenging goals and by giving the! res"onsibility and re ognition# 1t is

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through e!"loyee involve!ent that goals and targets an be a hieved in the shortest ti!e# Guality !ust be a way of life for everyone in the o!"any# "#alit$ is a%tion Guality is the result of deliberate a tion# 1t is the res"onsibility of senior !anagers to o!!uni ate the quality ob=e tives and to "rovide the resour es ne essary for their i!"le!entation# 1t is then u" to all e!"loyees to !a4e Guality ha""en throughout the o!"any# 9rogress is followed by listening to our usto!ers and by !easuring our "erfor!an e# Short o!ings and !ista4es !ust be analyzed and orre ted# 9roble!s !ust be anti i"ated and "revented before they o ur# *e also !ust identify and ta4e advantage of o""ortunities#+o stand still is to fall behind# So we !ust strive for ontinuous i!"rove!ent in every area# 1t is through !any s!all i!"rove!ents as well as through !a=or brea4throughs that we will a hieve e, ellen e# /t Nestl, Guality is our first "riority# -et us "ra ti e it every day#

Cons#(e! Se!)i%es /t Nestl, we are o!!itted to offering onsu!ers high.quality food

"rodu ts that are safe, tasty and affordable# +he Nestl Seal of Auarantee is a sy!bol of this o!!it!ent#

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*e also believe in !aintaining regular onta t with our onsu!ers# +his a""lies both to how we "resent our "rodu ts and to how we address our onsu!ers' questions and on erns# *hen Henri Nestl "re"ared his first bo,es of infant for!ula for sale, he "ut his address on the "a 4ages so "eo"le would 4now where to go if they had questions# +oday, our 'onsu!er Eelationshi" 9anel with the words C+al4 to NestlC e,"resses the sa!e o!!it!ent#

+his is why we have a worldwide Nestl 'onsu!er Servi es networ4 devoted to aring for our onsu!ers# 5ur "eo"le have e,"ertise in a wide range of areas su h as nutrition, food s ien e, food safety and ulinary e,"ertise# +hey "rovide the "ro!"t, effi ient and high quality servi e that onsu!ers e,"e t fro! Nestl# 1n addition, we tea h the! tal4 with onsu!ers and above all, to listen# -istening hel"s us to understand what "eo"le want# Nestl uses the insights gained fro! relationshi"s with onsu!ers to drive "rodu t develo"!ent# /t Nestl, we are for our onsu!ers be ause our su ess de"ends on !eeting their needs and e,"e tations# +hrough listening and understanding, we an !a4e "rodu ts that they will want to use all through their lives#

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FUTURE PROSPECTS Nestle is fo used on "rodu t e,"ansion and i!"rove!ent of distribution effi ien y# +he ;airy business is being e,"anded and is e,"e ted to drive growth in the long run, although short.ter! "rofitability !ay be i!"a ted in the invest!ent stage# +he o!"any3s entry into the !ineral water seg!ent is a on ern, as the seg!ent is already over rowded and the o!"any fa es stiff o!"etition es"e ially fro! the 'ola !anufa turers# / quisition of an established brand ould ata"ult Nestl3s "osition in the seg!ent# 1n ategories li4e beverages, ulinary "rodu ts and ho olate onfe tionery, the o!"any is loo4ing at driving growth through laun h of s!aller S?<3s, thus enabling affordability to a wide se tion of the "o"ulation#

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