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Nestlé Foods

Essay by   •  April 7, 2013  •  Case Study  •  860 Words (4 Pages)  •  2,767 Views

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Nestlé Foods is a Transnational Company (TNC) with its worldwide operations in over 70 countries. The founder of Nestlé was Henry Nestlé who from a modest beginning founded the company in 1866 in Switzerland for manufacturing milk powders for babies. At that time Switzerland faced one of the highest infant mortality rates and the milk formula saved the lives of many infants whose mothers were unable to breast feed successfully.

Nestlé's relationship with India dates back to 1912, when it began trading as "The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited", importing and selling finished products in the Indian market.

After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. Nestlé responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milk economy. Progress in Moga required the introduction of Nestlé's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestlé set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.

Nestlé has been a partner in India's growth for the past nine decades and has built a very special relationship of trust and commitment with the people of India. The culture of innovation and renovation within the company and access to the Nestlé Group's proprietary technology/ Brands, expertise and the extensive Centralized Research and Development facilities helps the company to create value that can be sustained over the long term. Nestlé India manufactures products of truly international quality under internationally famous brand names such as Nescafe, Cerelac, Maggi, Milky Bar, Milo, BarOne, Nestea and Kit Kat and in the recent years the company has also introduced products of daily consumption and use such as Nestlé Milk, Nestlé Dahi, Nestlé Butter, Nestlé Fruit n Milk ready to drink beverage and Nestlé Pure Life bottled drinking water.

Nestlé is often quoted by most as "multinational of multinationals". There is a good reason, as less than 2% of the turnover comes from the domestic market in Switzerland and rest from its other operations worldwide.

At present Nestlé is the world's largest food company with its international headquarters at Vevey, Switzerland. With

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