presentation on nestlé lanka plc
DESCRIPTION
Prepared for an undergraduate genral elective course, on 15/08/2013TRANSCRIPT
History & Overview
• Nestlé is a Swiss Company• First European condensed milk factory by Anglo-Swiss
Condensed Milk Company in 1866• Henri Nestlé, a German pharmacist, launched Farine
lactée in 1867– Infant product– Global company by 1872– Basis for today’s corporate
philosophy
• ASCMC and Nestlé merged in 1905 to form Nestlé
History & Overview• Commenced as a trading
company in Sri Lanka in 1906 over a century ago
• Became Publically Quoted in 1983• Home to best known brands
• Positive impact on livelihoods– Direct employment: 1200– Distributors, Suppliers, Farmers & families: 23000
Timeline of Events
• 1906: Nestlé arrives in Sri Lanka• 1950: Nestlé Products (Ceylon) Ltd• 1980: Dairy development in Sri Lanka• 1980: Joint venture – International Dairy Products Ltd• 1981: Nestlé Lanka Limited (NLL)• 1983: Nestlé Lanka Ltd Public Offering• 1984: Nestlé Kurunegala Factory• 1986: Eastern Food Specialities Ltd (EFSL)• 1993: Dedicated Facility for Coconut Milk Powder Production• 1998: UHT Plant in Polonnaruwa• 2004: 100% ownership of IDPL
Timeline of Events
• 2005: Nestlé Nutrition• 2006: Merger of Nestlé Lanka Limited with Subsidiaries• 2007: Registration of Nestlé Lanka PLC
Relocation of Polonnaruwa Plant• 2008: Nestlé Professional• 2009: Completion of LKR 125 million post-tsunami projects
Nestlé Nutrition Institute• 2010: Nestlé Health Science• 2011: Launches LKR 10 billion investment plan in Sri Lanka
Commissions Malt Beverage line in Kurunegala Factory• 2012: Commissions Noodle Plant and UHT Plant in Kurunegala
Factory
Brands
• Renown brands:
• In addition, global brands: Kit-Kat and Milkmaid• ‘Maggi Coconut Milk Powder’ the most preferred
in the global market(60 countries across 5 continents)
Brands
• Modern Production Facility in Kurunegala manufactures 90%+ of Nestlé products sold in Sri Lanka
• Recent Brand awards:– Effie Awards 2012• Silver Effie - Maggi Devilled Noodles• Bronze Effie - Nescafé
– SLIM Nielsen Peoples Awards 2012/13• ‘Hot Beverage of the Year’ - Nescafé • ‘Food Brand of the Year’ - Maggi• ‘Youth Food Brand of the Year’ - Maggi
Corporate Governance
• Board of Directors– Antonio Helio Waszyk (Chairman)
• Chairman and Managing Director of Nestlé India Limited• Director of Nestlé Bangladesh Limited
– Ganesan Ampalavanar• Managing Director of Nestlé Lanka PLC
– Syed Saiful Islam• Vice President - Finance & Control of Nestlé Lanka
– Pierre Schaufelberger• Zone Regional Manager
– Mahen Dayananda (Independent Non-Executive Director)– Ranjan Seevaratnam (Independent Non-Executive Director)
Corporate Governance• Shareholder breakdown (as at 31 December 2012)
• List of 10 Major Shareholders
Financial Performance (2012)
Financial Performance• Additional statistics for 2012 (Rs.000’s)– Profit for the year = 2,977,668– Total Assets = 8,643,289– Equity = 3,769,023– Total Liabilities = 4,874,266
• Share price variation – 2013
Rural Development - Milk
• In terms of value of products sold, Nestlé is the world’s largest milk company
• The ‘Milk District’ model– First used in the 1870’s– Farmers supply Nestlé milk factories directly, and Nestlé
provides facilities and support to develop the local supply chain– Includes local Collection, Storage and Chilling facilities– Provides a reliable route to market and product quality
assurance– Nestlé Agronomists and Vets provide technical advice & training
to farmers– Provide access to financial assistance
Rural Development - Milk
• Uplifting the livelihood of Dairy Farmers– Promote good dairy farming practices such as cattle
feeding and breeding, animal health and farm management
– Pioneered large scale fresh milk collection in North-Eastern districts at the end of the Civil War• Chilling centres opened by Nestlé in Jaffna, Kilinochchi, Mallavi and
Oddusudan
• For Nestlé: a regular supply of high-quality milk to meet consumer demand
• For farmers: more rewarding price, regular payment, a secure route to market and access to local facilities
Rural Development - Coconuts
• Nestlé Lanka is the largest exporter of Coconut Milk Powder in the world
• Two-fold approach to create ‘Shared Value’– Create Direct and Indirect employment– Transfer of Technology, Knowledge and
other development programmes• 54 million coconuts procured a year– Positively impact 5,000 rural based
Sri Lankan coconut farmers and their families
Rural Development – Water & Env. Sustainability
• Centred around the ‘UN Global Compact (UNGC) CEO Water Mandate’
• Active setting up of ‘Nestlé Clean Drinking Water projects’– Facilities of highest hygiene and quality– Drilling bore wells– Using existing deep wells– Installing water pumps & tanks– ‘Water education’ made part of
curriculum, with every project
Awards & Recognition
• Women in Management Award– For empowering private sector female leadership
• Swarnadeepa Award– For its contribution to the Agricultural sector
• Global Commerce Excellence Award– For supporting the national economy and activities prior,
during and post Civil Conflict; as an overseas partner• Best Corporate Citizen Award– Highest Corporate Honour for a Sri Lankan business
• NCE Export Award– Most Outstanding Sri Lankan Exporter Award in the Agri Bulk
sector
Awards & Recognition
• National Cleaner Production Award– Overall Bronze (only food processing company awarded)
• Achiever Award– For its contributions towards commercial growth and creative
thinking (only multinational awarded)
• National Green Award– Recognizing the company’s world-class initiatives to conserve the
environment at its Kurunegala factory• CSV Award– A medal of appreciation for the company’s contribution to the
economic and social development of Sri Lanka• Swarna Lanka Award– For tremendous dedication in developing the country
Thank You…