nestle india ltd
DESCRIPTION
TRANSCRIPT
NESTLE INDIA LTD.
HENRY O NESTLE• Founded in 1867• Had an Objective in mind: To Be the Largest and Best
Brand Food Manufacturer Eight of the thirty selling
products should include Nestle Logo
Not only make well selling products but be the best in food market
Henry O Nestle
History
• Farine Lactee Nestle - 1st product• Substitute for Mother's Milk• Other products: Carbonated Mineral water Nuts Oil, Rum and Vinegar World’s First Instant Coffee in 1938
• In 1960 -- Switzerland’s Biggest company with 200 Factories
Entry in India
• In 1905,Nestle acquired the Anglo-Swiss Condensed Milk Company.
• Nestlé's relationship with India started in 1912• 1947-local production• 1961- Moga, Punjab
Company Profile
• is a Swiss multinational food and beverage company headquartered in Vevey.
• largest food company in the world measured by re
• grew significantly during the First World War venues.
• Nestlé has a primary listing on the SIX Swizz Exchange and is a constituent of the Swiss Market Index
• In 2011 - Nestlé was listed No. 1 in the Fortune Global 500
• In 2013 - Nestlé ranked No. 9 in the FT Global 500
Nestlé's CEO
• Born-1954• Nestle 20 September 2007 OBJECTIVES• Creating Shared Value• Focusing on Nutrition• Water, Rural Development
and More• Meeting our Commitments• Sharing your views
Paul Bulcke
NESTLE BRANDS
Marketing StrategiesBeverages
Nescafe Coffee
• First instant coffee(1938)• NO demand• Aim - Mass Marketing
• After 10years need for innovation………
Marketing StrategiesBeverages
• Introduced in 1952• Nondairy creamersWhat r these??
• Substitute for milk
Marketing StrategiesBeverages (new innovations)
Nespresso (1976) The Nescafe(2006)
Marketing StrategiesMilkshakes and other beverages
• Company had introduced Milo in 1996 as energy drink
• Competitors were Bournvita and Boost
• Advertisement problem ………………..• Thus a dead product in
India
Marketing StrategiesChocolate
• Began as chocolate in 1948(U.S.A) as►
• Launched in 1950 in Europe
• name was changed to the worldwide brand Nesquik in 1997
• In 1999-Nesquik Cereal
Marketing Strategies Chocolates
Galak
KitKat
Marketing StrategiesMilk and Nutrition(Icecreams)
Marketing StrategiesMilk and Nutrition(Sweeteners)
• Milkmaid and Caramel• Condensed milk• For tea and coffee• Sweets• Change in cover Back cover-recipes Front cover-sweets Faltering demand
Marketing Strategies Milk and Nutrition(Cereals)
• Aimed at mothers and children
• Animation
Marketing Strategies “Taste Bhi Health Bhi”
• Prepared dishes• NO demand• Failed terribly• Change-----
• FREE SAMPLES Masala Atta Noodles
Marketing Strategies “Taste Bhi Health Bhi”
Marketing Strategies “Taste Bhi Health Bhi”
Marketing Strategies “Its different”
Marketing Strategies Water
• Yet 64 brands such as Nestlé Pure Life, Poland Spring, AcquaPanna, S.Pellegrino, Perrier, Vittel,
Buxton.• Yet to cover Indian Markets due to other competitors.
Nestle mineral waters formed by 1845 by Henri Nestle.
Promotion Strategy(Nestle Pure Life – NPL)
Promotion important and crucial elementthe company establishes its image in the mind of the customers.Slogan is Pure Life is “fresh and rejuvenating taste”“Embrace the pure life”.
PRISING STRATEGY• Jan2011-Sept2011Domestic market: Sales rose 9.5% year-on-year while value rose 21.5%.Exports market. Sales declined 10.2% year-on-year, but it rose 8.9% in value
terms.Conclusion Nestle has been hiking prices sharply, a strategy that runs
the risk of hurting consumer demand and even becoming uncompetitive.
Net Sales (in Crores)
2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
8000
9000
Net Sales (in Crores)
Net Sales (in Crores)5129.4
6254.7
7490.8
8302
4324.24
Net Sales (Increase in % )
2008 2009 2010 2011 20120
5
10
15
20
25 23.421.9
19.8
10.8
Net Sales (increase in % )
Net Sales (increase in % )
18.6
Net Sales (in Crores )
2008 2009 2010 2011 20120
200
400
600
800
1000
1200
Net Profit (in Crores)
Net Profit (in Crores)655
818.7
961.81068
534.08
Net Profit (increase in %)
2008 2009 2010 2011 20120
5
10
15
20
25
30
35
29.1
22.624.99
17.48
11.04
Net Profit (increase in % )
Domestic Sales
2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
8000
9000
Domestic Sales (in Crores )
Domestic Sales (in Crores )3985.85
4800.8
5901
7095
7877
Export Sales
2008 2009 2010 2011 20120
50
100
150
200
250
300
350
400
338.39 328.6353.54
0
380.42
Export Sales (in Crores)
Contribution of Product Categories.
27%
26%18%
12%
11%
6%
2%
Sales (in %)
DrinksDairy & Food ProductsPrepared dishes & Cooked DishesChocolatesPet ProductsPharmaceuticalsBaby Milk Products
Sales by Geographic Area.
Europe America US Asia Rest of the world
0
5
10
15
20
25
30
35
Sales by Geographic Area (in %)
Sales by Geographic Area (in %)
Share Price of Nestle India Ltd.
2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
Share Price as on 31st December
Share Price2445.67
3686.99
4103.60
4960.1019 September 203-
19th September 2013. -5
1362.72
Earning Per Shares
2008 2009 2010 2011 20120
20
40
60
80
100
120
EPS in %
EPS in %55.3967.94
84.91
99.73 110.76
Dividend Per shares
2008 2009 2010 2011 20123940414243444546474849
DPS in %
DPS in %42.5
48.5 48.5 48.5 48.5
Interim Dividend
2008 2009 2010 2011 201211.7
11.8
11.9
12
12.1
12.2
12.3
12.4
12.5
12.6
Interim Dividend
Interim Dividend
12
12.5 12.5 12.5
Nestle India Income and Expenses
2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
8000
9000
4361.56
5169.53
6296.67
7537.02
8357.58
3491.74126.52
5013.52
5952.866501.21
Income Expenses
Earning Before Tax and Profit After Tax Details
2008 2009 2010 2011 20120
200
400
600
800
1000
1200
1400
1600
1800
2000
869.86
1043.02
1283.14
1584.16
1856.37
777.5
931.75
1155.39
1430.83
1579.22
775.86
930.35
1154.32
1421.77
1552.62
534.08
655
818.66
961.551067.93
EBITDA EBIT EBT PAT
Secured Loan and Unsecured Loan(in Crores)
2008 2009 2010 2011 20120
100
200
300
400
500
600
700
800
900
1000
1100
Secured LoanUnsecured loan
0.820.84 0.24
970.031049.95
Fixed Assets & Current Assets (in Crores)
2008 2009 2010 2011 20120
50010001500200025003000350040004500
Nestle India Assets
Fixed Assets Current Assets
1404.851640.79
1854.702552.21
4368.68
422.89597.82 656.91
883.93 1064.61
Operating Profit Per shares
2008 2009 2010 2011 20120
20406080
100120140160180200
86.81
105.31
129.3
159.51
189.32
Operting Profit Per Share
Operting Profit Per Share
Current Ratio and Quick Ratio
2008 2009 2010 2011 20120
0.1
0.2
0.3
0.4
0.5
0.6
0.7 0.660.6 0.62 0.6
0.54
0.280.23 0.26 0.24 0.21
Current Ratio Quick Ratio
CR = CA CL
QR = QA QL
Ratio (in %)
Fixed Asset Turnover ratio
2008 2009 2010 2011 20120
1
2
3
4
5
6
7
8
9
3.2 3.24
8.71
4.83
3.27
Fixed Asset Turnover Ratio
Ratio (in %)
Owners Fund Ratio
2008 2009 2010 2011 20120
20
40
60
80
100
120
99.82 100100
56.7563.13
Owners fund as % of total source
Owners fund as % of total source
Nestle India Investments
2008 2009 2010 2011 20120
50
100
150
200
250
300
350
400Investments (in Crores)
Investments (in Crores)
34.90
203.26
150.68 134.37
364.86
Future Investment
•Nestle plans Rs 500-cr plant in Gujarat for Maggi Noodles.
INVESTMENT IN MILK PLANT
• Antonio Helio Waszyk, Chairman & Managing Director, Nestle India Ltd , said the company had made investment of Rs 9,500 crore in the country, according to an official statement.
• said the company had made investment of Rs 9,500 crore in the country, according to an official statement.
INVESTMENT IN OTHER PRODUCTS
•RS 200cr in chocolates.
•RS 600cr in Green fieldFacility programme.
•$50M in R&D unit inKarnataka.
Final Conclusion
• Nestle India owns very strong brands.• Earnings as much as 25-30 times increases
every year.• Increase in P/E ratio.• Example-For example if you bought Nestle in
2009 at Rs. 1,989 and sold in 2012 at Rs. 4,540 you earned a 32% compounded annual growth rate on your investment in three years.