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ON
NESTLE-INDIA LIMITED
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CONTENTS
Chapter-1
INTRODUCTION
• Company overview
• Vision, mission and objectives
• History and growth of the company
• Milestones
• Products
• Research and development
Chapter-2
• Human resource management in NESTLE-INDIA LIMITED
Chapter-3
• Marketing activities and management in NESTLE-INDIA LIMITED
Chapter-4
• Financial data analysis
• SWOT analysis
• Reference
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OVERVIEW OF FOOD PROCESSING INDUSTRY
India is one of the key food producers in the world, with the second largest arable land
area. It is the largest producer of milk, pulses, sugarcane and tea in the world and the
second largest producer of wheat, rice, fruits and vegetables. India’s Food Processing
industry is one of the largest industries in the country - it is ranked fifth in terms of
production, consumption, export and expected growth. The Indian food industry is
estimated to be worth over US$ 200 billion and is expected to grow to US$ 310 billion
by 2015. India is one of the world’s major food producers but accounts for only 1.7 per
cent (valued at US$ 7.5 billion) of world trade in this sector – this share is slated to
increase to 3 per cent (US$ 20 billion) by 2015.
Food processing is a large sector that covers activities such as agriculture, horticulture,
plantation, animal husbandry and fisheries. It also includes other industries that use
agriculture inputs for manufacturing of edible products. The Ministry of Food Processing,
Government of India has defined the following segments within the Food Processing
industry:
• Dairy, fruits & vegetable processing
• Grain processing
• Meat & poultry processing
• Fisheries
• Consumer foods including packaged foods, beverages
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And packaged drinking water.
While the industry is large in terms of size, it is still at a nascent stage in terms of
development. Out of the country’s total agriculture and food
produce, only 2 per cent is processed. The highest share of processed food is in the Dairy
sector, where 37 per cent of the total produce is processed, of which 15 per cent is
processed by the organized sector.
Primary food processing (packaged fruit and vegetables, milk, milled flour and rice, tea,
spices, etc.) constitutes around 60 per cent of processed foods. It has a highly fragmented
structure. Several processing units are in unorganized sector In comparison, with the
organized sector .
Nestle SA, Switzerland is amongst the world’s largest food and beverages companies.
The company is progressively evolving from a respected, trustworthy food and beverage
company to a respected, trustworthy food, beverage, nutrition, health and wellness
company. This objective is encapsulated in “Good Food, Good Life”. The principle
activities of the group encompass: beverages, milk products, nutrition and ice cream;
prepared dishes and cooking aids; chocolate, confectionery and biscuits; water; and pet
care. It has 511 factories in 86 countries around the world.
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Background - Nestle India
Nestle India is one of the leading companies in the FMCG space in India. The company
is acknowledged amongst India’s ‘Most Respected Companies’. Nestle products are sold
throughout India and are also exported to Russia, Hungary, Japan, USA and several other
countries. These include certain international products like Nescafe and Lactogen, For
three years in succession [from 1999-2000 to 2001-2002], Nestle India was recognised
with the top Exporter Award for export of Instant Coffee, and for export of all coffees to
Russia and CIS Countries.
Nestlé set up its operations in India, as a trading company in 1959 and began
manufacturing at the Moga factory in 1962. The production started with the manufacture
of Milkmaid and other products were gradually brought into the fold. Nestlé India
Limited was formally incorporated in 1978 prior to which the manufacturing license was
issued in the name of the Food Specialties Limited. The corporate office is located at
Gurgaon and the registered office at M-5A, Cannaught Circus, New Delhi.
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At present Nestlé has 7 manufacturing units countrywide which are successfully engaged
in meeting the domestic as well as the exports demand. In addition there are several co
packing units. Manufacturing units are located at,
VISION:
MISSION:
“ Nestle is dedicated to providing the best foods to people throughout the day,
throughout their lives, throughout the world. With our unique experience of
anticipating consumer’s needs and creating solutions, Nestle contributes to your
well-being and enhances your quality of life”.
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OBJECTIVES:
To make company’s customers winners by constantly exceeding their
expectations
Nestle India’s main objective is to manufacture and market the products in such a
way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.
In 1959, on 28th March, the Company was incorporated at New Delhi. The
company was promoted by Nestle Alimentana S.A. through a wholly Owned subsidiary
Nestle Holdings Ltd. In 1989 The name of the company was changed from `Food
Specialties Ltd.' to `Nestle India Ltd.' on 24th March.
1990
- During the year company entered into chocolate business by introducing Nestle
premium chocolates.
1993
- Samalkha factory was commissioned during the year and underwent expansion for
cereal based products.
- 196,07,054 shares 47,51,625 No. of Equity shares of Rs 10 each allotted to M/s. Nestle
SA Switzerland to raise the stake to 51%. 128,55,429 bonus shares issued in prop. 1:4.
1994
-During the year company launched a number of new products viz., Cerelac Soya, Milk
maid, Dessert Mixes, Maggo Tonit's Special Cooking Bases, Maggi 1-2-3 noodles,
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Contodina snack dressing and the chocolate items, milky base marbles and bar one
peanut. And also launched Bonus and Polo.
1995
- During the year company commenced construction of a new factory at Bicholim, Goa.
At the same year, instant noodles factory was Installed and commissioned at Samalkha
factory.
- During the year company launched Kit Kat manufactures at the new factory at Ponda,
Goa.
-The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd., to market
its dosa and vada batter in consumer pack, in the country. The company has signed an
agreement to this effect recently. Nestle would sell the ready-to-use dosa, vada, sambhar
and unique masala dosa batter in consumer packs, under its own brand name in the
country.
1996
-During the year company launched MILO-Chocolate energy food drink in South India
and a range of culinary products like, Dosa and Sambar mixes, pickles and new varieties
of soups under the brand Maggi.
1997
- NIL stood as one of the top players in the processed food & beverages industry and the
largest producer of instant coffee with a 49 percent market share.
2000
- Nestle is set to enter the domestic bottled water business and will launch the product
under the brand name `Pure Life'.
-The Company has launched its ultra heat treated liquid milk, `Nestle Pure Milk', in
Bangalore, Chennai, Hyderabad and Kochi.
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- Nestle India Ltd. to launch Nescafe Gold and Nescafe Gold Decaffeinated.
- Nestle India has launched a range of gift packs under the Fox confectionery brand name
for the festival seasons.
2005
-Nestle India introduced new variants of Maggi into the market.
Nestle India got Tetra Pak's annual dairy and beverage industry award in 2004.
NIL is one of the top players in the processed food and beverages segment and the
largest producer of instant coffee with a 49% market share.
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Nestle operates in four key segments viz., Milk Products & Infant Nutrition, Prepared
Dishes & Cooking Aids, Beverages and Chocolate & Confectionery. The company
enjoys leadership position in its core categories like Baby Foods, Instant Noodles and
Instant Coffee. Nestle enjoys distinct advantage over its competitors in the F&B space on
account of its strong focus on developing products around the Nutrition, Health and
Wellness platform and a culture of renovation and innovation in its offerings backed by
strong parent support (largest Food company in the world).
Milk Products & Infant Nutrition: Everyday, Milkmaid, Nestle dahi, Nesvita (Probiotic dahi)
NESTLE EVERYDAY
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CHOCLATE AND CONFECTIONARY: Kit Kat, Milkybar, Eclairs, Polo are the strong
brands available in the market
MILO POWDER:
To provide convenience to consumers, NESTLE MILO was launched in its new 130gm.
With an attractive airtight jar in February2000. This was done with a view to bring our
packaging in line with the industry practice of making milk fortifiers and modifiers
available in jars and tins and to reverse the trend of consumer preference for imported
MILO or similar products over local MILO. Consumer response to the new initiative has
been very positive.
NESCAFE CLASSIC
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NESCAFE, Nestlé’s international flagship brand, is locally repacked and marketed in
2gm. and25gm. Sachet, 75gm. bottles and 500gm. Soft packs. The brand enjoys a special
position in the country's coffee consuming segment.
LACTOGEN
LACTOGEN 1 and LACTOGEN 2 are infant and follow-up formulae launched in 1991
and are available in two sizes. The brands provide both affordability and quality.
CERELAC
Launched in 1989, CERELAC is the dominant player in the growing infant cereal
market. Available in 5 flavors, the brand provides balanced nutrition to infants from 4.
months onwards.
Fast to cook, good to eat - MAGGI 2-MINUTE NOODLES were launched with local
Production in 1992 and in doing so Nestle pioneered the category of instant noodles in
India. MAGGI 2-MINUTE NOODLES have special appeal for children, are fun to eat
and offer a range of interesting flavors, namely: Masala, Chilli and Chatkhara.Affordably
priced and backed by focused marketing activities, MAGGI NOODLES have shown
good progress in 2000.
Research and development
The Nestlé research and development centers have two main tasks: to create new
products and manufacturing processes and to improve those that already exist. These
centers play a key role in product safety and quality and also have their role in conserving
resources and protecting the environment. Environmental concerns are an integral part of
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any development process to ensure that our future commercial operations meet the
desired criteria. The Nestlé Research Center provides the scientific support needed to
prevent and solve environmental problems arising in the development groups as well as
manufacturing. In addition, studies are carried out to find new ways of using industrial
residues to create value added byproducts. This will reduce total emissions and effluents.
The Nestlé development centers prepare environmental impact studies for new products
and manufacturing processes. These cover all aspects, from raw materials, through
processing, to the final packed product. These analyses provide additional elements for
use in deciding whether to commercialize a new product, or to introduce a new or
modified process.
HANDLING OF RAWMATEREALS:
The Nestlé Group is in principle not directly involved in primary production of raw
materials and other food ingredients. In general it uses locally available raw materials and
purchases them either directly from producers or through existing trade channels.
Raw materials have to meet clearly established quality criteria and are checked for
possible contaminants including environmental contaminants, purchasing specifications
comply not only with legal requirements but go further to ensure highest safety and
wholesomeness of our products.
NIL gives preference to those goods, for which environmental aspects have been taken
into consideration. In those cases where the required agricultural raw materials are not
available locally, but the natural production conditions exist, it encourages local
production and provides assistance for cultivation and dairy farm management.
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The culture of innovation and renovation, continuous improvement and the thrust on
value-for-money and affordability have helped the company to focus on adding value for
the consumer. Its Competitive advantages are,
A pool of qualified suppliers that are directly aligned with under represented and
emerging communities and can promote positive relationships with customers,
The company has access to Nestle group’s technology, brands, expertise and the
extensive centralized research and development facilities.
FUTURE PLANS:
The company continuously focuses its efforts to better understand the changing
lifestyles of modern India and anticipate consumer needs in order to provide
convenience, taste, nutrition and wellness through its product offerings.
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 growth potential of the food processing industry would attract domestic as well as
multinational players in the market. The present market is seeing players like Heinz,
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Mars, Conagra, Hershey, Pepsi, ITC, Dabur, Britannia, Cadbury, HLL, Pillsbury, Nestle
and Amul, Smithkline Beecham, etc and a host of local manufacturers offering
competition with their established brands on national level. Key Competitors for Nestle- India
are,
Baby food and Instant coffee are categories where brand loyalties are very strong and
Nestle is the market leader. HUL is a significant competitor to Nestle in instant coffee.
While Wockhardt is the main competitor in the baby foods market. The market for
culinary products, semi-processed foods such as noodles, ready mixes for Indian ethnic
breakfast and sweets, is largely an urban market. HUL and Indo Nissin Foods are the
main competitors in these product segments. Nestle has also achieved a significant 25%
share in the chocolate/confectionery market. The company has recently expanded its
dairy products portfolio to include, milk, curd and butter. The company’s entry into the
mineral water segment is a concern, as the segment is already overcrowded and the
company faces stiff competition especially from the Cola manufacturers.
HUMAN RESOURCES
Nestlé India believes that people are most valuable assets in enriching, the company
provides an extraordinary mix of cultures and nationalities, we can have a constant
access to people from all over the world. Nestlé India believes in giving as much
responsibility as possible to the individual. This inherent trust means employee can
quickly establish his/her own credibility, prove their professionalism and make a valuable
contribution to the company. The working conditions at Nestlé India match or are above
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those in comparable companies, and the company encourages a healthy work / life
balance for all employees.
With career options spanning Sales, Marketing, Supply Chain, Human Resources,
Finance & Control, Technical and various other functions, Nestlé India offers a wide
range of opportunities for people. Technical Management Trainees are selected from
reputed engineering institutes, specializing in the streams of Chemical, Electronics, and
Automation & Industrial Engineering. They are required to undergo an intensive on-the-
job training programme in Factories and Head Office. To create a pool of high caliber
managerial talent, Nestlé India hires fresh management graduates from premier
management institutes across the country. The Management Trainees are selected mainly
in the areas of Sales & marketing, Human Resources and Supply Chain.
All the Technical Management Trainees are selected, required to undergo an intensive
on-the-job training programme, they undergo a preplanned training programme in
Factories and Head Office. Nestlé India offers a wide range of opportunities for people. It
believes in offering the best training and development that will enable people to grow
continuously and maximize their potent. Nestle-India believes in empowering people.
So employees are given early responsibilities, each person is encouraged to take
personal responsibility, and to contribute actively to the long term sustainable growth of
the business. Almost from their first day on the job, young managers have the opportunity
to acquire and develop skills in leadership, people management, change management, and
decision making. Nestlé India recognizes that people make the difference. The Company
encourages and supports its people to inculcate the clearly laid down Nestlé India
Leadership Principles to enable them to take up responsibilities and challenges early in
their career. Nestlé does give their employees a chance to discuss their career
development for future accomplishments. They send their efficient workers and
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employees abroad for the improvement in their career. They also conduct workshops and
seminars for this purpose.
Nestle has established a separate compensation department for its employees. They offer
incentive pay and special bonuses to employees; they also provide disability benefits to
their employees.
The success of an individual is very much dependent on his ability, willingness to learn
and align his objectives with that of the organization. In the course of career employees
are encouraged constantly to learn more. Nestlé India will push every individual to
broaden his/her horizon, both nationally & internationally. Everyone has an equal chance
to move on to higher responsibilities. It is up to the individual to make the most of those
opportunities.
MARKETING STRATEGIES
Nestlé India is a Vibrant Company that provides consumers in India with products of
global standards and is committed to long-term sustainable growth and stakeholder
satisfaction.
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different departmental stores to attract the customers. They tried to reach each group of
people in which they have succeeded.
MARKETING MIX
PRODUCT:
NIL is well known for its rendered services in food sector. Nestlé has recognized the
special nutritional requirements which start from infants and covers the range to all age
groups. They add specific nutrients to milk and encourage children to consume nutritious
Products with different flavors, colors and shapes. For small children, and families,
Nestlé offers smaller sizes and portion able packs. Nestle milk and dairy products are
recognized throughout the world.
PRICING
Nestle has its own set of techniques for setting the prices of the product. It does not
primarily focus on the competitor’s pricing strategies. It emphasizes on the market
demand of the product. The prices of the products are also subjected to the type of
consumer product. If the product is a daily use then it can have a minimum price to attract
the customer towards your product. Thus the company cannot influence much on the
prices.
PLACE
Nestle’s products are available at every corner of the country regardless of rural or urban
areas.
PROMOTION
The following are some of the promotional strategies used by Nestle for market
expansion,
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It also uses other below line activities to promote its product like by using the
Following techniques:
• Free sampling
• Door to selling
• Prizes
DISTRIBUTION:
The distribution comprises of six branches located in Calcutta, Delhi, Mumbai, Chennai,
Bangalore and Chandigarh. The distribution network functions efficiently with the
transfer of goods from the factories to the Mother Godowns, which in turn are transferred
to the clearing and the sales agents. The C&S agents sell it to the cash distribution that
makes the secondary sale in the market.
Distribution Situation:
Company is using 2 channels for distribution,
• Retail outlets (indirect channel)
• Sales promotion officers
Financial statements:
Income
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Sales Turnover 2,373.17 2,643.96 2,944.20 3,647.49 4,472.04
Excise Duty 143.75 168.87 125.04 146.53 143.39
Net Sales 2,229.42 2,475.09 2,819.16 3,500.96 4,328.65
Other Income 8.21 23.67 15.33 21.24 29.88
Stock Adjustments 6.55 16.73 13.42 71.01 31.11
Total Income 2,244.18 2,515.49 2,847.91 3,593.21 4,389.64
Expenditure
Rawmaterials 1,047.99 1,135.80 1,348.21 1,763.54 2,153.85
Power & Fuel Cost 85.07 103.91 115.56 123.94 159.76
Employee Cost 164.25 183.29 216.16 269.44 314.58
Other Manufacturing Expenses 41.08 49.06 52.65 62.14 73.46
Selling and Admin Expenses 423.06 460.53 480.14 496.22 736.73
Miscellaneous Expenses 42.76 56.78 87.55 172.54 81.40
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,804.21 1,989.37 2,300.27 2,887.82 3,519.78
Dec '04 Dec '05 Dec '06 Dec '07 Dec '08
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Sources Of Funds
Total Share Capital 96.42 96.42 96.42 96.42 96.42
Equity Share Capital 96.42 96.42 96.42 96.42 96.42
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 222.99 257.72 292.47 322.01 376.93
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 319.41 354.14 388.89 418.43 473.35
Secured Loans 7.91 14.30 16.27 2.87 0.82
Unsecured Loans 0.00 0.00 0.00 0.00 0.00
Total Debt 7.91 14.30 16.27 2.87 0.82
Total Liabilities 327.32 368.44 405.16 421.30 474.17
Dec '04 Dec '05 Dec '06 Dec '07 Dec '08
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
1,404.8
Gross Block 838.16 942.40 1,058.27 1,179.77
5
Less: Accum. Depreciation 440.94 468.63 516.48 577.96 651.85
Net Block 397.22 473.77 541.79 601.81 753.00
Capital Work in Progress 34.09 22.83 38.24 73.70 109.17
Investments 154.86 104.43 77.77 94.40 34.90
Inventories 216.67 253.10 276.22 401.22 434.91
Sundry Debtors 26.17 30.52 55.76 53.49 45.59
Cash and Bank Balance 9.45 3.64 6.53 15.75 12.66
Total Current Assets 252.29 287.26 338.51 470.46 493.16
Loans and Advances 168.91 194.33 175.12 186.23 162.67
Fixed Deposits 0.00 33.00 69.82 22.01 181.03
Total CA, Loans & Advances 421.20 514.59 583.45 678.70 836.86
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 331.18 381.68 440.82 529.51 582.44
Provisions 348.87 365.50 395.28 497.79 677.32
1,259.7
Total CL & Provisions 680.05 747.18 836.10 1,027.30
6
Net Current Assets -258.85 -232.59 -252.65 -348.60 -422.90
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 327.32 368.44 405.15 421.31 474.17
Contingent Liabilities 10.39 50.04 35.93 63.27 84.90
Book Value (Rs) 33.13 36.73 40.33 43.40 49.09
FINANCIAL PERFORMANCE
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The analysis of the financial performance for the year ended March 31, 2008 in
comparison to the previous year is as under
:
INCOME
Total Income for the year at Rs.4,389.64 crores increased by 28% over the total income
of Rs.3593.29 crores in the previous year, the Net Income from sales, work bills, service
and commission increased by 24% from Rs.4328.65 crores in the previous year to
Rs3593.21 crores in 2007-08.
NETSALES
Total nets ales for the year at Rs 4328.65 crores increased by 28.59% over the total net
sales of Rs 3500.96 crores in the previous year.
SALES
4500
4000
3500
3000
2500
2000 SALES
1500
1000
500
0
1 2 3 4
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NET PROFIT
Net profit for the year was Rs.534.08 crores as compared to Rs.413.81 crores in the
previous year, representing an increase of 169.48%. Excluding an amount of Rs.27.32
crores being the profit on the sale of shares (net of tax thereon), the Net Profit was
Rs.413.81 crores, an increase of 131.32% over the previous year. Profit before Tax for
the year stood at Rs.775.86 crores, a rise of 161.31% over the previous year.
12.4
RATIOANALISYS:
12.2
NET PROFIT RATIO: Indicates the overall profitability of the company.
Net profit
Net profit ratio = ------------- X 100
Sales 12
11.6
ratio 11.4
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11.2
12.4
This ratio indicates the overall profitability of the company; Nestle-India is maintaining
an increasing profitability ratio from year to year. As sales are increasing , net profit of
the company is also increasing on path, hence it shows the growth of the company is
satisfactory.
12.2
OPERATING PROFIT RATIO:
12
Operating profit
Operating profit ratio = ---------------------- X 100
Sales
Operating profit = gross profit – (employee remuneration and benefit + operating and
general expenses + depreciation) 11.8
YEAR/PARTICULARS 2008 2007 2006
OOPERATING PROFIT 839.98 684.15 532.31
SALES 4,328.65 3500.96 2819.16
RATIO 19.40 11.6 19.54 18.84
ratio 11.4
11.2
19.6
11
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10.8
Operating profit ratio has a stable growth from past three years. This increase in
operating profit is attributed to increase in sales. The ratio indicated that despite increase
in sales value the operating expenses like office and selling have been contained effect
on operating profit.
CURRENT RATIO: This ratio indicates the ability to repay short term commitments
promptly.
Current asset
Current ratio = ---------------------
Current liability
0.695
Ideal current ratio is 2:1, the ratio of the company for the previous 2 years and current year is also
less than ideal, but when we see that, the reason for increase in current liabilities are because of
0.69
increased provisions. Total current liabilities without provisions are less than the total current assets.
So, the company has sufficient liquid assets, there is no threat of temporary insolvency. However in
this rapidly changing world of finance, with E-Banking system, they are providing protection against
the risk of technical solvency without sacrificing the opportunities of earnings of substantial returns
from multiple investment avenues.
0.685
RETURN ON NETWORTH:
0.68
Net profit
Return on equity = ---------------------*100
Shareholders equity
0.675
TIO
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The return on net worth captures the return being earned by investors who have borne risk of
business. It indicates the return which the shareholders are earning on their resources invested in the
business.
Net worth = Equity share capital + Preferential share capital+ Reserves and surplus
120
The company has an increasing return on net worth ratio, there is an incline in RONW
during three years, this indicates that company is making best use of assets(NW) to
increase the profits this ratio indicates value addition ,because market price of share is
dependent on earnings per share and price earning principle.
100
ASSETS TURNOVER RATIO:
80
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YEAR/PARTICULARS 2008 2007 2006
CGS 3606.86 2944.14 2397.39
TOTAL ASSETS 836.86 678.70 583.45
RATIO 4.30 3.33 4.10
Cost of goods sold = sales-gross profit (or) opening stock+ purchases + manufacturing –
closing stock.
Assets turnover ratio helps in identifying, how the available assets are managed to yield
better results. There is a little bit increase in this ratio from past three years, this indicates
4.5
that the potential of the total assets are not fully exploited to improve this ratio, subject to
other constraints if any.
RETURN ON INVESTMENT: This ratio reveals the earning capacity of the firm’s
capital employed in the business.
YEAR/PARTICULARS
NP+INTREST
4 2008
535.72
2007
414.66
2006
315.54
CAPITAL EMPLOYED 474.17 418.43 388.89
RATIO 112.98 99.09 81.13
3
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ROI
120
100
80
60 RATIO
40
20
0
1 2 3 4
Higher and increasing ROCE indicates the management efficiency of the firm , this is
because of the strategies developed by the company to generate return for its
shareholders. strategies developed to increase ROI might be,
Increasing volume of sales, (or)
Reducing the cost of production.
100
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90
Ther is an increase in debtors turnover ratio in 2008 when compared to 2006, it might be
that the company has extended their credit period to customers /dealers to increase sales,
the percentage increase in sales in 2008 supports this view.
Average inventory
Inventory turnover ratio = -------------------------- X 12 months
Cost of goods sold
ratio
10.5
10
9.5
9 ratio
8.5
7.5
1 2 3 4
The stock turnover ratio indicates, the extent of stock requirements to be held in order to
achieve a desired level of sales. In order to meetthe growing cost of goods sold the
management should keep sufficient stock to avoid a stock out situation. The higher
inventory turnover ratio indicates the good management policy in holding their
requirements of stock , organizations always strive to have higher turnover ratio ,as it
gives more profits because inventory holding costs are reduced and profits can be
increased.
Ideal ratio for food industry is 8, the company having more than ideal ratio indicates that
the stocks are fast moving and get converted into sales and it is increasing year by year.
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STRENGTHS:
• High quality and safe food products at affordable prices, endorsed by the Nestle
Seal of Guarantee.
• Distribution structure that allows wide reach and coverage in the target markets
WEAKNESS:
OPPORTUNITIES:
THREATS:
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• Rising prices of commodities, and raw materials
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