Nestle: Indias success story

draw close Indias success storyWith an employee-strength of over 3000 and turnover of US$ 497 million in 2003, go up India is one of the prima(p) companies in the FMCG space in India. The company is acknowledged amongst Indias Most Respected Companies and amongst the Top Wealth Creators of India.During the first composition half 2004, the company registered a lend income of US$ 257.8 million and net profit of US$ 23.73 million. near India is a 61.85 per cent subsidiary of nuzzle S.A. Switzerland and was incorporated as a limited company in 1959. It produces a great range of products including beverages, prepared dishes and cooking aids, milk products and nutrition, chocolate and candy store.Milk products and nutrition tale for around 45 per cent of Nestle Indias total revenues. The companys beverage products generate 22 per cent of the companys total revenues, while prepared dishes and cooking aids generate 18 per cent, and chocolate and confectionery 15 per cent. study Pla yer in processed foodsNestle India has over the years built strong brands like MAGGI, NESCAFE, CERELAC, LACTOGEN, KITKAT and POLO. Nestle is major player in many segments of the FMCG sector such as noodles and sauces MAGGI, instant coffee NESCAFE and wean foods. Nestle products are sold throughout India and are also exported to Russia, Hungary, Japan, USA and several other countries. These hold certain international products like Nescafe and Lactogen, as well as select culinary products to meet the drive of the ethnic Indian population living abroad. For three years in succession from 1999-2000 to 2001- 2002, Nestle India was accept with the top Exporter Award for export of Instant Coffee, and for export of every last(predicate) coffees to Russia and CIS Countries.Factors for successThe culture of innovation and renovation, free burning improvement and the thrust on range-for-money and affordability have helped the company to focus on adding determine for the consumer. The company has infinitely focused on operational efficiency improving product availability and visibility and initiated efforts to make its products more than relevant to the consumers. This has been supported by the distribution of smaller stock-keeping units (SKUs). There has been continuous focus on the septette value drivers, namelySales growthProfit marginWorking nifty intensity wintry capital intensityIncome tax rateCost of capitalValue growth duration advancement strategy for market place expansionThe following are some of the strategies used by Nestle for market expansion Availability of NESCAFE enhanced through an expansion of the vending machine network.New consumption opportunities for chocolates and confectionery were identified and developed in areas like railway platforms, college canteens and major events.Nestle set up coffee shop Nescafe and Coffee Corners across metros and mini-metros.Thrust on supply chainDuring the past few years, Nestle India has endlessly fo cused on improving the supply chain to reduce wastage, improve efficiencies and provide consumers with fresh stocks all the time.Reduction in the finished goods inventory pipeline to improve freshness of stocks and reduce working capitalControl on distribution costs through innovative measuresSustained improvement in node service levels to improve product availability across all geographies and channelsReduction in obsolescence of materials competence in research and developmentThe company has access to the Nestle Groups proprietary technology/brands, expertise and the colossal centralized research and development facilities. The culture of innovation and renovation and benchmarking of consumers tastes and products is facilitated in the company by the unparalleled Experimental Kitchen and 2Sensory Laboratory at the Head Office.Leveraging the India AdvantageOutsourcing manufacturingNestle India has six factories and a boastfully number of co-packers who manufacture products to Ne stle specifications.Outsourcing IT advantageThe Nestle Group is in the process of implementing the GLOBE protrusion across its operations worldwide. GLOBE is a unique project and the largest of its kind and will enable the Nestle Group to maintain its competitive advantage in the change magnitudely complex environments of the future.Leveraging the vast consumer base in IndiaNestle has an optimistic outlook on the Indian economy as the income of people is increasing and the lifestyles are changing. Nestle is keen on leveraging the vast consumer market of India.Future plansNestle Indias fair game is to manufacture and market the companys products in such a way so as to create value that can be sustained over the long term for consumers, shareholders, employees and business partners.Nestle aims to create value for consumers that can be sustained over the long term by offering a wide variety of high quality, safe food products at affordable prices.The company continuously focuses its efforts to better find the changing lifestyles of modern India and anticipate consumer needs in order to provide convenience, taste, nutrition and wellness through its product offerings.