A PROJECT REPORT

On

FINANCIAL ANALYSIS OF NESTLE

Submitted by

Parag Sharma(05421001711)

In partial fulfillment of the requirementsFor the reward of the degree

OF

BACHELOR OF BUSINESS ADMINISTRATION

Under the supervision ofMr. Mayank Gupta

Ideal institute of management and technology(Affiliated to Guru Gobind Singh Indraprastha university)

i

CERTIFICATE

Certificate that this project report titled “FINANCIAL ANALYSIS OF NESTLE” is the

bonfide work of Mr. Parag Sharma who carried out the research under my supervision.

Certified further that to the best of my knowledge the work report here in does not form

part of any other project report or dissertation on the basis of which degree or award was

confirmed on an earlier occasion on this or any other candidate.

Mr. Mayank Gupta

( Assistant Professor )

.

ii

ACKNOWLIDGEMENT

I would like to take this opportunity to sincerely thank Mr Mayank gupta for his valuable

support, guidance and suggestion. Under his able to accomplish my project with

confidence. I would also like to thanks my friends and my siblings who directly or

indirectly helped me in my project. I would also like to sincerely thank our ideal Institute

Of management and technology Where, I spared my time to have access to wide

information on internet.

DATE:

PLACE :

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OBJECTIVE

The study of pricing of Nestle different products and which techniques they use to

maximize the profit. We study the how Nestle increase their profit by introducing new

product. We have done a comparison of Nestle by its competitors. The place Nestle has

in market. . We have studied the ongoing battle in the financial market. So these are the

objectives of the project.

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TABLE OF CONTENTSCONTENTS PAGE NO.

CERTIFICATE…………….…………………………………………………………..(ii)ANCKNOWLEDGEMENT………………………………………....….…………….(iii) OBJECTIVE OF STUDY…………….………………….……….…………………..(iv) Chapter- 1: Conceptual discussion (1-13)

Chapter- 2: Introduction

2.1 Industry review 22.2 Company profile 42.3 Swot analysis 82.4 Competetor analysis 12

Chapter- 3:Research methodology (23- 29)

3.1 Research design 243.2 Methodology 253.3 Research framework 253.4 Data source 263.5 Objectives of study 29

Chapter- 4 Finding and analysis (30- 37)

4.1 Data analysis and findings 37

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Chapter- 5 Conclusion and suggestion (38- 40)

5.1 Conclusion 395.2 Suggestions 40

Bibliography 41

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CHAPTER 1

CONCEPTUAL DISCUSSION

Financial analysis (also referred to as financial statement analysis or accounting analysisor Analysis of finance) refers to an

assessment of the viability, stability and profitability of abusiness, sub-

business or project.

It is performed by professionals who prepare reports using ratios that make

use of information taken from financial statements and other reports. These

reports are usually presented to top management as one of their bases in

making business decisions.

Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the

production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection

on various alternatives in the conduct of its business.

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Chapter 2

INTRODUCTION

2.1 INDUSTRY REVIEW

Chocolate consumption in India is extremely low. Nestle dominates the chocolate market

with about 60% market share. Cadbury has emerged as a significant competitor with

about 20% market share. Key competition in the chocolate segment is from co-operative

owned Amul and Campco, besides a host of unorganized sector players. There exists a

large unorganized market in the confectionery segment too. Leading national players are

Parry's, Ravalgaon, Candico and Nutrine. MNC's like Cadbury, Perfetti, are recent

entrants in the sugar confectionery market. Other competing brands such as GCMMF's

Badam bar . Chocolate consumption in India is extremely low. Per capita consumption is

around 180gms in the International areas, compared to 6-8kg in the developed countries.

In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as

a snack food. Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven

mainly by the children segment. In the late 80's, when the market started stagnating,

Nestle repositioned its Dairy Product to any time rather than an occasional luxury. Its

advertisement focused on adults rather than children. Nestle’s Kit Kat, the first count

chocolate, was launched in 1900. Due to its resistance to temperature, the chocolate has

become one of the most widely distributed chocolate in the country. In the early 90's,

high cocoa prices compelled manufacturers to raise product prices significantly. The

launch of wafer ,chocolates and Perk spurred volume growth in the mid 90's. These

chocolates positioned as snack food rather than on the indulgence platform compete with

other Company. A strong volume growth was witnessed in the early 90's when Nestle

repositioned chocolates from children to adult consumption. The mid 90's saw the entry

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of new players like Cadbury, which created categories like wafer chocolate and spurred

growth.

Confectionery

Confectionery, processed food based on a sweetener, which may be sugar or honey, to

which are added other ingredients such as flavorings and spices, nuts, fruits, fats and oils,

gelatin, emulsifiers, colorings, eggs, milk products, and chocolate or cocoa.

Confectionery, usually called Vevey in the Switzerland, kinds according to their

preparation and based on the fact that sugar, when boiled, goes through different stages

from soft to hard in the crystallization process. Typical of soft, or crystalline, candy—

smooth, creamy, and easily chewed— are fondants (the basis of chocolate creams) and

fudge; typical hard, non crystalline candies are toffees and caramels. Other favorite

confections include nougats, marshmallows, the various forms of chocolate (bars or

molded pieces, sometimes filled), pastes and marzipan, cotton candy (spun sugar),

popcorn, licorice. Records show that confectionery was used as an offering to the gods of

ancient Switzerland. Honey was used as the sweetener until the introduction of sugar in

medieval Switzerland. Among the oldest types of candies are licorice and ginger from the

Far East and marzipan from Switzerland. when with the development of special candy-

making machinery it became a British specialty. In the Switzerland the candy industry

began to grow rapidly during the mid-18th century with the invention of improved

machinery and a cheaper process for powdering sugar. In 1900 the first candy bars were

sold in Kit Kat; by 1960 candy bars made up almost half of Switzerland confectionery

production. By the 1980s annual world production of confectionery totaled many millions

of kilograms.

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2.2 COMPANY PROFILE

2.2.1 VISION OF NESTLE

a) Governing objective: To deliver superior shareowner returns.

b) Priorities: Growth, efficiency capability

Growth: Their growth priority is represented by the mantra – Fewer, Faster, Bigger,

Better. They focus on number of advantaged global and regional brands, invest in getting

their new product developments into more markets faster, use joined up commercial and

marketing programmes to have a bigger impact and underpin the whole plan by executing

their initiatives better.

Efficiency: Their efficiency priority recognizes that it is not enough to grow;they

must also be more profitable. They maintain a relentless focus on cost and efficiency by

reducing central functions and costs; consolidating their businesses and reconfiguring

their manufacturing and distribution. Their vision in to action will help increase their

margins to mid-teens by 2011 with the aim of delivering mid-term margins by 2011.

Capability: Their capability priority ensures they continue to invest in the right

organization and skills to win. They have simplified and strengthened their organization

to a pure-play confectionery business. They manage their commercial strategies on a

global basis through their categories of Wonka Chocolate, Maggi strong functional

leadership.

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2.2.2 Values of Nestle

Their values are:

Performance: They are passionate about winning. They compete in a tough but

fairway. They are ambitious, hardworking and make the most of their abilities. They are

prepared to take risks and act with speed

.Quality: They put quality and safety at the heart of all of their activities – their

products, their people, their partnerships and their performance.

Respect: They genuinely care for their business and their colleagues. They listen,

understand and respond. They are open, friendly and they coming. They embrace new

ideas and diverse customs and cultures.

Integrity: They always strive to do the right thing. Honesty, openness and being

straight forward characterize the way they do business. They have clear principles and do

what they say they will do.

Responsibility: They take accountability for their social, economic and

environmental impact. In this way they aim to make their business, their partners and

their communities better for the future. Their Business Principles are their code of

conduct and also take account of global and local cultural and legal standards. They

confirm their commitment to the highest standards of ethics and business conduct

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2.2.3 Company Overview JAPAN HEADQUATERS VEVEY SWIZERLAND

The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States.

In August 1867, Charles and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation was opened at Chippenham, Wiltshire, in 1873.

In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food, and soon began marketing it. The following year, 1868, saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process; Nestlé's was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate, and thus

6

preventing the product from developing mildew. Henri Nestlé retired in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.

In 1877, Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé Company added condensed milk, so that the firms became direct and fierce rivals.

In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain. The First World War created new demand for dairy products in the form of government contracts, and by the end of the war, Nestlé's production had more than doubled.

After the war, government contracts dried up, and consumers switched back to fresh

milk. However, Nestlé's management responded quickly, streamlining operations and

reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-

manufacture becoming the company's second most important activity.

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2.3 SWOT ANALYSIS

Nestle Schweppes was founded in the year 1867 by Henri Nestle. Nestle India Limited arm of Nestle SA, which holds a 51% stake in the company .It is one of the leadings branded processed food companies in the country with a large market share in product like instant coffee, weaning foods, instant foods, milk products, etc. It also has a significant share in the chocolates and other semi-processed foods market.

Nestle’s leading brands include Cerelac, Nestum, Nescafe, Maggie, Kit Kat, Munch, Milkmaid. To strengthen its presence, it has been the company’s endeavor to launch new products at a brisk pace and has been quite successful in its launches.

Aim: Apply SWOT analysis to Cadbury’s current situation and its position to enter a

foreign market It is important to investigate on the internal and external environmental

forces for the Dairy Milk in France. Relevant organizational and industrial information is

required for the development of a SWOT analysis. The analysis of the environment and

the consideration of the situational factors when designing marketing planning, is critical

as it would allow Dairy Milk to capitalize on organizational strengths, minimize any

weaknesses, exploit market opportunities and avoid any threats

Strengths In India, Nestle has some very strong brands like Nescafe, Maggie and Cerelac. These

brands are almost generic to their product categories

.Global food producer, located in over 100 countries. Consistently one of the

world, largest producers of food products, with sales in the USA in 2008 of $10

billion; sales and earnings in 2008 were better than expected, even in a

downturned economy, Global sales in 2008 topped $101 billion.

Repeatedly ranked as the world’s largest bottled water company and have set up

facilities to operate water resources in a responsible manner.

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In 2008 Nestle was named one of “America’s Most Admired Food Companies” in

Fortune magazine for the twelfth consecutive year.

Successful due in part of their unquestionable ability to keep majopr brands

consistency in the forefront of consumer’s minds by renovating existing product

lines, keeping major brands from slipping into saturation/decline and having

superior access to distribution channels.

.

WeaknessesGenerally, as Nestle has a weak position in the US market, thus, need to change its target

to a different location. Besides its lack of distribution network, it also has a small total of

market share altogether. Therefore in order to market the product in France successfully,

Nestle would have to find out on how it can improve in order to have great performance.

It is also good to find out what are the situations that they could avoid in order to be

successful. In order to market products the following issues should be considered:

Growth in their organic food sales division was flat in 2008 ,even though

the industry grew 8.9%.

General Millis is an experienced ,established brands and are the market

leader in the USA ,however ,they have been lacking in innovation , have

not cashed in on the booming health food craze and have been behind in

creating new .niche products ,especially in their yogurt division ,where

Yoplait is the only brand making a profit.

In 2008 ,although their products did not carry the recalled pistachios,

several of their ice cream brands, Dryer’s, Eddy’s and haagen-Dazs,were

still plagued with bad PR and loss of sales.

OpportunitiesThrough its confectionary product line, least to mention is to build viable positions in

Prioritized markets through organic growth and acquisition. Besides what is mention

above, Nestle has other opportunities to have market development in Russia and China.

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The Timeout Candy Bar market is growing worldwide. This company is also at the same

time distributing its products via the internet – Develop Gourmet Line. Besides

developing the “Low Calorie” line of chocolates and sweets, they also offer the “Sugar

Free” sweets line. This has thus opened a completely Nestle world in US. Therefore in

order to get the product into a new foreign market, France, Nestle would have good

opportunities in store for them. Opportunities are as follows:

In today’s health conscious societies ,they can introduce more health based

products ,and because they are a market leader, they would likely be more

successful.

Provide allergen free food items, such as gluten free and peanut free.

Opened Nestle Cafe’s in major cities to feature Nestle product.

ThreatsDue to its confectionary products, it is very important for Nestle to be aware of any

present or upcoming threats. The company should take note of the changes in the

consumer’s buying trend. It is perceived that consumers might shift from chocolates to

“Healthy” snacks. If this were to happen, there might be a poor product development

which would tarnish the Nestle’s name. Needless to say price wars would occur between

its competitors like Mars, Hershey and Cadbury. Due to the abovementioned, there would

be seasonal sales slumps all year round which will reflect to an increase in cost of the raw

materials needed. Nestle would then have to be prepared for growth of small local

gourmet chocolates and regional candy manufacturers. However if Nestle were to market

its products in France, the company has to be aware of the risks it could encounter. It

might:

Any contamination of food supply, especially e-coil. Nestle has yet to find out

how this happened, and is still investigating.

They were affected by the pet food recall in 2007, in which 95 different brands of

dog and cat food were recalled due to contamination with rat poison. Also in

2007, FDA learned that certain pet foods were sickening and killing cats and

dogs. FDA found contamination in vegetable proteins imported into the united

states from chine and used as ingredients in pet food.

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They have major competitors, like Hershey’s, Cadbury –Schweppes, lindt and

Ghirardelli, Kelloggs, post, starbucks, beech-nut,

Quaker, Heinz, frito-lay.

2.4 COMPETITOR ANALYSIS

2.4.1 CADBURY INDIACadbury dominates the chocolate market with about 70% market share. Nestle has

emerged as a significant competitor with about 20% market share. In the early 90's, high

cocoa prices compelled manufacturers to raise product prices significantly. The launch of

wafer, chocolates Kit Kat and Perk spurred volume growth in the mid 90's. These

chocolates positioned as snack food rather than on the indulgence platform compete with

biscuits and wafers. A strong volume growth was witnessed in the early 90's when

Cadbury repositioned chocolates from children to adult consumption. The mid 90's saw

the entry of new players like Nestle, which created categories like wafer chocolate and

spurred growth.

2.4.2 Amul (GCMMF) The Rs 2,748-crore GCMMF is in chocolate segment

since quite some time. However, its market share is just

5% and the company did not look aggressive till

recently. Amul chocolates used to come in not so attractive packages and very little

marketing effort was seen. But things have changed and for good. Amul is now an

important player in this growing chocolate industry. It has firmed up its measures with

marketing and new product launches and revamping its packaging. Amul just recently

launched new chocolate brands in the market - Rejoice, Kite Bite and Nuts `bout You.

Amul targeted various segments with its new product, including housewives from SEC A

and B households, caterers, bakeries, restaurants, biscuit manufacturers, ice-cream

parlours, and confectioners.

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2.4.3 CAMPCO (Central Arecanut and Cocoa

Manufactures and Processors Co-operative)

CAMPCO willingly took up the responsibility to enter the

cocoa market As a strategy for survival in the International

scene the CAMPCO played a major role in establishing a name for Indian Cocoa, which

hitherto had not been achieved. It procured cocoa pods from growers and adopting

scientific processing methods to market standards, released dry cocoa beans matching in

quality in the world market equal to that of Ghana, Brazil and other cocoa cultivation

nations. After entering into the Cocoa market, the Co-operative was able to export Cocoa

Beans worth Rs 40 million to European countries in the initial phase of operations. India

was not known as a Cocoa producer in the international Trading Community, since yearly

production was hardly 5 to 6 thousand tones which is not even 0.3% of the total world

consumption. Through sustained efforts CAMPCO has been able to ensure reasonable

prices to Cocoa growers. The Co-operative had to face the problem of a limited internal

market and un remunerative export market. With the setting up of the chocolate

manufacturing factory at Putters, 50KM from Mangalore, the Co-operative has been able

to increase local consumption of cocoa based products and to export value added semi-

finished products. With a view to creating a permanent demand and a steady market for

the beans

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CHAPTER 3

RESEARCH METHODOLOGY

It refers to the method adopted to collect the relevant data and other information, which

forms the basis of the thesis writing. So for the effective writing of the thesis report, the

data must be quality oriented. My research is divided into two stages:

3.1 RESEARCH DESIGN

In order to produce empirical evidence, data collection is necessary in a particular

location. The process of discovery requires primary as well as secondary data, which

have to be collected using appropriate methods and techniques, including household

surveys and rapid appraisal methods. The study included both "exploratory" and

"evaluation" analysis. An analysis was done using "with" and "without" project situations

in order to see the comparative advantages and disadvantages of alternative and

traditional energy technologies. “With” and “without” project situations refer to the areas

with and without project intervention by the Rural Energy Development Program

(REDP) Additional primary data was gathered from key people such as women's group

leaders, community leaders, the village elders, energy development group,

promoters/facilitators, project staffs and professionals through using participatory

research methods. Efforts were made to avoid some data collecting errors such as

coverage error (not allowing every household in the study area to have an equal chance of

being sampled), sampling error (only some members being asked to provide

information), and measurement error (obtaining inaccurate answers to survey questions

due to unclear questions or instructions, tendency to provide socially acceptable answers,

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and deliberately lying). Having an up-to-date household population list, random

sampling, indirect questioning and trust building with the respondents minimized these

errors. Before the field data collection took place at various levels, a considerable time

period was given to the literature review to build up the strong theoretical background of

the study. An in depth review of the literature helped to understand the issues of rural

energy, gender and energy issues, and interventions and sustainability in depth to identify

the position of other scholars in the field.

3.2 METHODOLOGYMethodology is a way of thinking about and studying social reality and is a way to

systematically underneath the reasons behind the phenomenon. The methodology

followed for conducting the study includes the specification of research design, sample

design, questionnaire design, data collection and statistical tools used for analyzing the

collected data.

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3.3 RESEARCH FRAMEWORK

.

In

contrast the qualitative approach uses various participatory research methods, and small

case studies with an emphasis on a gender analysis framework. Information collected

through quantitative approaches was analyzed and interpreted using appropriate statistical

tools and techniques. Qualitative information was categorized according to groups of

parameters and interpreted in a descriptive way. I used the triangulation of methods in

order to avoid any biases in data sources such as household survey and participatory

research methods and they were used in conjunction with the evidences supported

through the review of literature.

3.4 DATA SOURCE

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3.4.1 Primary Data - The relevant information has been generated from the medium of

interviews. Interview had been very helpful in analyzing the information collected from

secondary data. The data that are still needed after that search is completed will have to

be developed specifically for the research project and are known as primary data. An important source of primary data is survey research. The various types of

surveys (personal, mail, computer, and telephone), are described ahead. Experiments are

another important source of data for marketing research projects. Experiments are

conducted in either a laboratory setting (most advertising copy pretests) or in a field

setting (test marketing). Electronic and computer technologies have revolutionized both

these environments,

3.4.2 Secondary Data- Secondary data represents information that already exists

somewhere, having been collected for another purpose. The secondary data that are

available are relatively quick and inexpensive to obtain, especially now that computerized

bibliographic search services and databases are available. The various sources of the

secondary data and how they can be obtained and used are described ahead. Most

secondary data are generated by specialized firms and are sold to marketers to help them

deal with a category of problems. Nielsen’s television ratings, which marketers use in

making advertising decisions,is the best-known example. Many of these services, broadly

categorized as audits, commercial surveys, and panels, allow some degree of

customization and thus fall between secondary and primary data. These sources are

treated in detail ahead. The secondary data sources that came to be utilized by me in

these were as follows-

I Internal Sources- Internal sources can be classified into four broad categories:

(a) Accounting records: The basis for accounting records concerned with sales is the

sales invoice. The usual sales invoice has a sizable amount of information on it, which

generally includes name of customer, location of customer, items ordered, quantities

ordered, quantities shipped, dollar extensions, back orders, discounts allowed, date.

(b) Sales force reports: Sales force reports represent a rich and largely untapped

potential source of marketing information. The word potential is used because evidence

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indicates that sales personnel do generally not report valuable marketing information.

Sales personnel often lack the motivation and/or the means to communicate key

information to marketing managers.

(c) Miscellaneous records: Miscellaneous reports represent the third internal data

source. Previous marketing research studies, special audits, and reports purchased from

outside for prior problems may have relevance for current problems.

(d) Internal experts: One of' the most overlooked sources of internal secondary data is

internal experts. An internal expert is anyone employed by the firm who has special

knowledge.

II. External Sources- External sources can be classified in to seven categories

(a) Computerized database: A computerized database is a collection of numeric data

and/or information that is made computer-readable form for electronic distribution.

(b) Associations: Associations frequently publish or maintain detailed information on

industry sales, operating characteristics, growth patterns, and the like. Furthermore, they

may conduct special studies of factors relevant to their industry. These materials may be

published in the form of annual reports, as part of a regular trade journal, or as special

reports.

(c) Government agencies: Federal, state, and local government agencies produce a

massive amount of data that are of relevance to marketers. In this section, the nature of

the data produced by the federal government is briefly described.

(d) Syndicated services: A wide array of data on both consumer and industrial markets is

collected and sold by commercial organizations.

(e) Directories: Any sound marketing strategy requires an understanding of existing and

potential competitors and customers. Suppose you were asked to prepare a report on the

17

forest products industry, to aid your organization in developing a sales and marketing

approach to lumber manufacturers. A number of services and directories would prove

useful. A general industry directory such as Thomas Register of American Manufacturers

is a good starting place

(f) Other published sources: There is a virtually endless array of periodicals, books,

dissertations, special reports, newspapers, and the like that contain information relevant

to marketing decisions.

(g) External expects: External experts are individuals outside your organization whose

job provides them with expertise on your industry or activity. State and government

officials associated with the industry, trade association officials, editors and writers for

trade and publications, financial analysts focusing on the industry, government and

university researchers, and distributors often have expert knowledge relevant to

marketing problems.

3.5 OBJECTIVES OF STUDY

1. The study of pricing of Nestle different products and which techniques they use to

maximize the profit.

2. We study the how Nestle increase their profit by introducing new product.

3. We have done a comparison of Nestle by its competitors.

4. The place Nestle has in market.

5. We have studied the ongoing battle in the confectionery market.

18

6. What are the difficulties, which Nestle faces, in past years.

CHAPTER 4

DATA INTERPRETATION

Type Société Anonyme

Traded as SIX: NESN

Euronext: NESTS

19

OTC Pink: NSRGY

Industry Food processing

Founded Anglo-Swiss Condensed Milk Company

(1866)

Farine Lactée Henri Nestlé

(1867)

Nestlé and Anglo-Swiss Condensed Milk

Company

(1905)

Founder(s) Henri Nestlé, Charles Page, George Page

Headquarters Vevey, Switzerland

Area served Worldwide

Key people Peter Brabeck-Letmathe (Chairman)

Paul Bulcke (CEO)

Products Baby food, coffee, dairy products,breakfast

cereals, confectionery,bottled water, ice

cream, pet foods(list...)

Revenue  CHF 83.64 billion (2011)[1]

Operating

income

 CHF 12.53 billion (2011)[1]

Profit  CHF 9.487 billion (2011)[1]

Total assets  CHF 114.09 billion (2011)[1]

Total equity  CHF 58.27 billion (2011)[1]

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Employees 328,000 (2012)[1][2]

Website www.nestle.com

Balance Sheet of Nestle India ------------------- in Rs. Cr. -------------------

Dec '11 Dec '10 Dec '09 Dec '08

12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 96.42 96.42 96.42 96.42

Equity Share Capital 96.42 96.42 96.42 96.42

Share Application Money 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00

Reserves 1,177.54 759.00 484.85 376.93

Revaluation Reserves 0.00 0.00 0.00 0.00

Networth 1,273.96 855.42 581.27 473.35Secured Loans 0.84 0.00 0.00 0.82

Unsecured Loans 970.03 0.00 0.00 0.00

Total Debt 970.87 0.00 0.00 0.82Total Liabilities 2,244.83 855.42 581.27 474.17

Dec '11 Dec '10 Dec '09 Dec '08

12 mths 12 mths 12 mths 12 mths

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Application Of FundsGross Block 2,552.21 1,854.70 1,640.79 1,404.85

Less: Accum. Depreciation 976.46 841.96 744.59 651.85

Net Block 1,575.75 1,012.74 896.20 753.00Capital Work in Progress 1,418.64 348.91 79.63 109.17

Investments 134.37 150.68 203.26 34.90Inventories 734.04 575.95 498.74 434.91

Sundry Debtors 115.42 63.29 64.19 45.59

Cash and Bank Balance 25.55 19.45 26.73 12.66

Total Current Assets 875.01 658.69 589.66 493.16

Loans and Advances 256.36 200.17 184.85 162.67

Fixed Deposits 201.66 235.84 128.86 181.03

Total CA, Loans & Advances 1,333.03 1,094.70 903.37 836.86

Deffered Credit 0.00 0.00 0.00 0.00

Current Liabilities 1,113.13 843.68 666.39 582.44

Provisions 1,103.83 907.94 834.79 677.32

Total CL & Provisions 2,216.96 1,751.62 1,501.18 1,259.76

Net Current Assets -883.93 -656.92 -597.81 -422.90Miscellaneous Expenses 0.00 0.00 0.00 0.00

Total Assets 2,244.83 855.41 581.28 474.17

Contingent Liabilities 0.00 0.00 63.07 84.90

Book Value (Rs) 132.13 88.72 60.29 49.09

Source : Dion Global Solutions Limited

BALANCE SHEET OF NESTLE INDIA FOR 2011 CHAPTER 5

FINDINGS AND ANALYSIS

Percentage of people eating chocolate

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This pie chart shows that 60 % of the people eat chocolate which is actually very

exciting results for the companies especially for the Nestle because it dominates almost

60% of the total confectionary market .only 40% of people do not eat chocolate.it is a

very good results which can really motivate the company to increase its production and

maximize its profit by selling more chocolates in the market.

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Different brands of chocolate that people usually eat

This diagram shows the interest of the people towards different brand. It reveals that

Nestle is the most popular brand in the market. Most number of people prefer Nestle. It

also indicates the nestle is the closest rival of Nestle which has the second highest sale

after Nestle. It is very good result for the Nestle as it motivates the company to increase

its production . so that its maximize its profit. And continue to dominate in both domestic

and international market.

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Number of the people which aware of the campaign of the brands

This is a pie chart which clearly reveals that how many consumers in the market are

aware of the different campaign which is currently going on in the market. It is quite sad

that only 54% percent people in the market are aware of the campaign and the remaining

people are not aware of such campaign. If company want to maximize its sale then it

really have to make the people aware of the following campaign. And make the people

knows about it product.

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Different product of Nestle in the market that people like

Nestle has many product in the market which they offers to the people. Some of them are,

Crunch, Kit Kat, Smarties and laffy taffy .

Crunch Aero brand was introduced in the North of England in 1935 as the 'new chocolate' and proved so popular that sales were extended throughout the UK by the end of the same year. By 1936, the popularity of Aero chocolate extended to New York. The brand’s success comes from its unique bubbly texture. The way the bubbles collapse and then melt on your tongue creates a deliciously smooth chocolate sensation. Over the years the popularity of the brand has spread and today the Aero brand is enjoyed in many countries including Canada, Australia, South Africa and Japan.

Some things you just don't outgrow. Nestlé Crunch chocolate bar – with a unique combination of rich milk chocolate and crisped rice - is one of them. Since 1938 the Nestlé Crunch brand has been bringing out the kid in people all over the world.

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Kit Kat

Have a break, have a Kit Kat.

Delighting consumers all over the world, Kit Kat brand is a favourite chocolate treat thanks to its light wafer texture and delicious chocolate taste, freshness and variety of formats. A perfect snack to enjoy as part of a balanced diet.

Smarties

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The delicious nibble everyone loves! Colorful coated chocolate confectionery in a variety of individual, multi-pack or special occasion formats. A long-time favorite in many countries including the UK, Germany, Australia, South Africa and Canada. Initially named 'Chocolate Beans', the Smarties brand has held a special place in people's hearts since 1937. Continuous product improvements, including a shift to no artificial colours or flavours, ensure that Smarties brand remains a popular choice for kids and adults alike.

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Laffy Taffy

Nestlé UK reduced the packaging on Smarties and other Nestlé brand chocolate Easter

Wonka brand opened its doors in 1983. Since that time, the Wonka brand has been dedicated to the art of producing fun, innovative, high-quality confections for candy lovers of all ages.

Wonka candies include: Wonka Chocolate, Nerds, Nerds Rope, Sweetarts, Shockers, Spree, Laffy Taffy, Runts, Everlasting Gobstopper, Lik-M-Aid Fun Dip, Pixy Stix, Bottle Caps, Kazoozles and Gummies.

The Willy Wonka Candy Factory is owned by Nestlé USA In

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Availibility of NESTLE in the market

This diagram clearly reveals of the availability of the Nestle chocolate in the market. It indicates that n is easily available in the market and people has no difficulty in buying these chocolate. If any company wants to capture a major share in the market then it has to make its product easily available in the market. So that people can familiarize with them and should try the. That’s why Nestle dominates the whole market by capturing 60% share of the market because its product is ea

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Total confectionary segment share

This figure clearly reveals about the total confectionary segment share in the market.the highest share in confectionary market is choco bars with 37.5%. The second highest share is sugar confectionary share with 33.6%.Gum share is 11.6%, Child novelty is 3.2%, Assort choco is 2.2%, Block choco is 10.9% and strips share is 1.1%. So this is the total confectionary segment share.

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4.1 DATA ANALYSIS AND FINDING

After analyzing the data we came to conclusion that Nestle is the most popular brand in

the market. It nearly dominates about 60% of the total confectionary market. . Nestle has

emerged as a significant competitor with about 20% market share. Key competition in the

chocolate segment is from co-operative owned Amul and Campco, besides a host of

unorganized sector players. There exists a large unorganized market in the confectionery

segment too. Even though nestle has 20% share in the market but still it is very far away

from Nestle. Nestle completely dominates the whole confectionary market. Whatever

product Nestle made it is completely able to sell in the market. Because Cadbury

manufactures quality products.In the Chocolate Confectionery business, Nestle has

maintained its undisputed leadership over the years. Some of the key brands are Nestle is

Crunch, Kit Kat, Smarties and Laffy Taffy.

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CHAPTER 6

CONCLUSION AND SUGGESTION

5.1 Conclusion

Nestle Schweppes prepares financial statements because: · As a listed company, it is

legally required to do so. Nestle Schweppes wants to communicate a true and fair picture

of the financial state of the company to its shareowners and external analysts. The

company values transparency and honesty and aims to reflect this is all its

communications, both internally and externally. Nestle won the Communication of

Corporate Strategy Award at the Price water house Coopers 'Building Public Trust'

awards in 2006. This publicly recognized the high standards of the company's reporting:

'a highly accessible overview of its short-term strategy, major markets and measurable

Price plays an important role in the purchase of a product like dairy milk they have

introduced dairy milk the most popular chocolate in Rs.5 also which is within the reach

of every customer. Consumer prefers quality goods at lower price like Nestle people just

introduced bytes, which is a snack, which is sweet. Consumer is loyal to brand so it’s

necessary to pay attention to the brand image. In today’s world most of the people see the

image of the product and then purchase it. So it’s necessary to make an image in market.

Consumer prefers those goods whose advertisements are shown on television. Price

should be according to the competitor’s price .i.e the price of Nestle should be less or

same as the competitors price.

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5.2 SUGGESTION

There should be difference in pricing strategy of Nestle i.e. in term of rural and urban

areas. It should show more and more ad of the chocolates that it is offering. For Example,

Nestle only emphasis on Kit Kat chocolate the most and not the other products. It

should introduce different schemes like giving mask to the children with their product to

attract children the most. The packaging of the Nestle product should be made more

attractive so that more and more people attractive towards it. Every customer likes

changes if not they get used to it but they should take risk.

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BIBLIOGRAPHY

www.nestleindia.co.in

www.findarticles.com

www.nestle.co.uk

www.economictimes .com

www.wikipedia.org

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QUESTIONNAIRE

Q1.

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