A

Proposal

On

WINTER INTERNSHIP PROJECT

Submitted in the Partial Fulfilment of

Requirement of Bachelor of Business Administration (BBA)

Guided By: Submitted By:

Mrs. Ankita Valera Jay pawar (28)

Submitted To

Shree Uttar Gujarat BBA and BCA College

Affiliated to Veer Narmad South Gujarat University.

Year 2022 – 23
RESEARCH TITLE:-

Working capital of nestle company.

INTRODUCTION:-

Working capital is difined as “ Excess of current liabilities and provisions ” it is

that part of the capital with which the business is worked over.

The life or death of any business enterprise depends upon the availability of
cash. A business firm / enterprise incurring losses still survive because of
sufficiency of cash. Similarly, lack of cash can give rise to failure in the face of
actual or prospective earnings.

Efficient cash planning through a relevant and timely cash budget may enable a
firm to obtain optimum working capital and ease the strains of a cash shortage,
facilitating temporary investment of cash and proving funds for funds for
normal growth.

Many company/ factories are interested in increasing their profits. However,

very few companies worry about managing their working capital. Many
companies fail due to bad management of working capital. They may be
profitable, but they are not able to pay their bill.

Working capital management involves the relationship between a company’s

short term assets and its short-term liabilities. The goal of working capital
management is to ensure that a company is able to continue its operation and
that it has sufficient ability to satisfy both maturing short-term debt and
upcoming operational expenses. The management of working capital involves
managing inventories, accounts receivable and payable and cash management.

Working capital refers to the amount of capital that is readily available to an

organization. Organization needs both-terms and short-term fund, Funds are
needed for longterm purposes of fixed assets, such as plant and machinery, land
building, furniture. Funds are also required for short-term purpose like
purchases of raw materials, payment of wages and other day-to-day expenses.
The objective of working capital management is to maintain the optimum
balance of each of working capital components.

Working capital Managements takes place at two levels:

1. Ratio Analysis can be used to monitor overall trends in working capital and
to identify areas requiring management.

2. The individual components of working capital can effectively managed by

using various techniques and strategies.

When considering these techniques and strategies, company needs to recognize

that each department has a unique mix of working capital components. The
emphasis that needs to be placed on each component varies according to the
department.

Working capital management keeps your cash flowing as quickly as possible. If

cash flow is considered as the lifeblood of a business then working capital
management becomes the heart-this is what pumps cash around a successful
business, perfectly as quickly as possible! Pricing and costing can be considered
as the lungs because they are the system that takes in revenue, expels costs and
makes sure you have plenty of oxygen to keep the business alive. A healthy
body needs healthy lungs and in the same way to build or maintain a healthy
business you need to:

Set a price and control costs for your healthy lungs.

Manage working capital for your healthy heart.

Liquidity and profitability are two more important and major aspects of
corporate business life. No firms can survive, if it has no liquidity. A firm may
exist without making profits but cannot survive without liquidity may soon meet
with its downfall and ultimately die. Working capital management is thus a
basic and broad measure of judging the performance of a business.

Further more working capital management is not an end in itself. It is an

integral part of a company’s overall management. The needs of efficient
working capital management must be considered in relation to other aspects of
the company’s financial and non-financial performance.

WORKING CAPITAL CYCLE:

Every business organisation needs adequate working capital because the

conversion of cash into finished goods to debtors and back to cash is not
instantaneous. The continuing flow from cash to suppliers, to inventory, to
accounts receivable and back into cash is called the working capital cycle or
operating cycle. In other words, the term operating cycle refers to the length of
time which begins with the acquisition of raw materials of a firm and ends with
the final realisation of cash from debtors. The amount of working capital
depends upon the length of working capital cycle. Longer the working cycle,
higher is the need of working capital to be maintained. This is because the fund
will then remain tied-up in various items of current assets for a longer period.
The length of operating cycle varies from industry to industry and from
business to business.

REVIEW OF LITERATURE
Introduction:

The Literature review is required to understand the intricate aspects of

present study. A good researcher has to update with the current knowledge
about what and how much work has been carried out in the field related to the
current study and where more exploration is required. Such a review has not
only provide a sound rationale for the present study but also would help in
defining boundaries for this present study. A proper review of related literature
helps, to a great extent, in defining problem, developing a research design and
determining the size and scope of further study. Different researchers have
analyzed and interpreted working capital management practices in different
ways.

Rao and Rao (1991), in their study among a few public enterprises belonging
to manufacturing sector in the state of Karnataka, have attempted to probe in to
the capacity of the various techniques I evaluating working capital efficiency of
business enterprises. The study revealed that the investment working capital
was considerably high when compared to the total investment. The Tandon
Committee norms were found to be yielding better results among the surveyed
companies. However, the study also revealed that the working capital planning
and control was found to be disorderly and ineffective and hence, the urgent
need for full focus on working capital management.

Sitharamayya (2001), the broad objective of this Research is Working Capital

Management Remained a relatively neglected sector of overall management in
small enterprises generally fail more on account of the inadequacies to properly
manage their working capital than for other reasons. The performance of
enterprises is to a large extent dependent on how efficiently the working capital
and its components are managed the study gives more significance to working
capital management and their components. It also contributes significantly in
export product of the country. Industrial policy of Government also thrown up
challenges for small enterprises.

Mogere (2002), a study carried on ‘working capital management among thirty

public companies listed at the Nairobi Securities Exchange’ as at 31st
December, 2002. The objective of the study was to determine the effect of the
amount of long-term financing of current assets on the profitability of
companies. He also sought to establish whether there is any significant
relationship between working capital management policy and the profitability of
a company as measured by ROE. The study also wanted to establish if public
companies in different sectors in Kenya follow different working capital
management policies. Simple regression analysis was done to establish the
relationship between working capital policy and the return on equity. The
results of the analysis showed that the commonly practiced working capital
management policy among the public companies in Kenya is the aggressive
approach policy. The study revealed that there is no any significant differences
between the working capital management policies across the five sectors.
Further, the research findings showed that there were no significant differences
in return on equity among companies that practice different working capital
management policies. Due to the high cost of long term funds, most companies
tend to use short term funds which often carry minimal cost.

Singh (2004), study on Working capital in Lupin Laboratories Ltd. attempted to

assess the significance of management of working capital through working
capital ratio and operating cycle. Having analysed seven years data (1995 –
2002), he concluded that the liquidity position of the company was good, mean
percentage of current assets was very high when compared to the percentage of
net fixed assets and the operating cycle showed declining trend. The element
wise analysis of working capital also revealed that trade debtors constituted the
highest percentage of current assets followed by loan and advances, inventories
and cash and bank balances.

Parasuraman (2004), study attempts to understand the relationship between

credit period given by companies and their actual performance in terms of sales
and profitability. He has also attempted to find average level of other key
financial parameters connected to working capital management. Having laid the
emphasis on Indian Pharmaceutical companies, he found out that leading
companies have employed greater working capital for enhancing profitability.
The study also revealed the days sales outstanding had gone up in the sample
companies. The study inferred that the top pharmacy companies strategies on
their working capital policy to relax the credit policy to achieve greater sales
and greater profits.

Parasuraman (2004), study attempts to understand the relationship between

credit period given by companies and their actual performance in terms of sales
and profitability. He has also attempted to find average level of other key
financial parameters connected to working capital management. Having laid the
emphasis on Indian Pharmaceutical companies, he found out that leading
companies have employed greater working capital for enhancing profitability.
The study also revealed the days sales outstanding had gone up in the sample
companies. The study inferred that the top pharmacy companies strategies on
their working capital policy to relax the credit policy to achieve greater sales
and greater profits.

Amit K. Mallick and Debasis Sur (2005), a research study conducted on

working capital management of Hindustan Lever Limited. The objective of the
study was to examine the operational efficiency in Hindustan Lever Limited.
Ratio analysis techniques and statistical tools were applied to measure liquidity
of the company. They found that the current ratio and quick ratio of a sample
company was very low as compared to the ideal norms which revealed that
industry was not maintaining adequate amount of liquidity to meet the current
obligations, industry turnover ratio indicated that there was a substantial
improvement in the efficiency of inventory management of the company and
debtors turnover ratio confirmed that the performance of credit management of
company as a whole was satisfactory, a short term fund had played a dominant
role in funding the working capital; and the profitability of the company was
deeply influenced by efficient management of its inventory as well as debtors.

Arindam Ghosh (2007), “Working Capital Management Practice in some

selected industries in India – A case study of impact of working capital ratios on
profitability in Cement Industry”. The study which attempted to examine the
efficiency of working capital management of the Indian cement companies
during 92-93 to 2001–02.

Janardhan Rao (2007), The broad objective of the study is to examine the
existing level of Working Capital Management in the selected units it is
proposed to make a cross examination of the utility of having expertise
managerial know – how with that of not having such know – how. Major topics
are performance of the selected unit’s management of inventory management of
cash management of account receivables.

Kaburi Simeon Nyandemo (2008), this study provides a comprehensive

analysis of Working Capital Management practice in sameta division district
secondary school. The paper surveys show how secondary school teacher who
are the school manage. The school cash inventories, accounts receivable, and
accounts payable. Management of school become a concern of most people in
society as there seems to lack professionalism in are of management of school
finance. Financial decision made will affect most people in society as majorly
meet vested interest in the school. The study project in corporate cash, accounts
receivable and account payable management practice of secondary school in
sameta division.

Kushwah, Mathur & Ball(2009), The study undergone to evaluate the working
capital management and direction in selected five major cement companies i.e.
ACC, Grasim, Ambuja, Prism and Ultra- Tech.. For the research purpose
secondary data are used like authors collected the financial statement of selected
cements companies for the years from 2007 to 2009. There is liquidity ratios
and activities ratios are used to analyse the condition of working capital of the
companies. The study revealed the truth of study is that, most companies not
maintain their 15 working capital in a systematic way while overall ACC shows
appropriate management of working capital.
Zahra Mousavi and Azam Jari (2009), Working Capital Management is one
of the mostimportant financial decision in corporate. The optimum management
of Working Capital will increase the corporate value so the primary goal of
research is evaluating relationship between Working Capital Management and
corporate performance. We used factors such as return on total assets return on
owners’ equity and market value to book value ratio for evaluating corporate
performance and net liquidity balance as criterion for evaluating of Working
Capital Management results show that there are positive relationship between
Working Capital Management and corporate.

Muhsin Salim (2010), the study focuses on the effect of working capital
management on profit and trend of small and medium enterprises. The result
shows that there is a positive linear relationship between working capital
management and profitability of firm.

David Mathuva (2010), the study focuses the impact of Working Capital
Management components of corporate profitability. There exists a highly
significant negative relationship between the times taken by the firms to collect
cash from their costumers secondly there exists a highly significance positive
relationship between the period taken to convert inventories into sales. Thirdly
there exists a highly significance positive relationship between the time to pay
its creditor the more profitable it is.

Adina Elena Danuletiu (2010), the purpose of this study to analyze the
efficiency of working capital management of companies or firms or industries
from Alba country, The researcher also study the relation between the
efficiency of the working capital management and profitability. The conclusion
of the study says that there is a negative relationship between working capital
management and profitability.

Jaiswal Vikas Kumar and Pandey Shishir (2011), Management of Working

Capital is essential it has direct impact on profitability and liquidity. An attempt
has been made in this paper to study Working Capital components and impact
of Working Capital Management on profitability. The research also make on
attempt to study the correlation between liquidity and profitability of NALCO
study is based on totally secondary data and period cover for the study between
1995 to 2008.

Ashok Sharma and Kumar (2011), the main aim of this article is to examine
the effect of Working Capital on profitability of Indian firms. The finding of
researcher shows significantly depart from the various international markets.
The result show that Working Capital Management and profitability in
positively correlated in Indian companies Research also shows that the
inventory of number of day and number of days account. Payment is negatively
whereas number of days accounts receivable and cash conversion period a
positive relationship with corporate profitability.

Lalit Kumar Joshi (2012),a study of working capital management of Cipla Ltd
shows performance of company in terms of absolute liquid ratio is not
satisfactory, the current ratio, quick ratio, debtors turnover ratio are satisfactory,
working capital turnover ratio and current assets turnover ratio are rather low
and therefore indicates low utilization of working capital.

Gamze Vural (2012), a study of working capital management on firm’s

performance shows that working capital has an important role for firm’s success
or failure because of its effect on firm’s performance and liquidity. According
to author there is significant relationship between working capital management
and firm’s performance. The result shows collection period of account
receivables and cash conversion cycle are negatively related with firm’s
profitability.

Piyal Basu Roy (2012), a study conducted on Working Capital Management of

Indian FMCG Companies aims to explore effects of working capital
management like cash conversion cycle, age of inventory, age of debtors, age of
creditors, debt to total assets & debt equity ratio on profitability of FMCG
firms. The study is expected to help out finance managers and practitioners to
recognize vital areas which might improve financial performance of their firms
operation.

Kaur Harsh V. and Singh Sukhdev (2013), This article focuses on cash
conversion efficiency and setting up the operating cycle days. The study tests
the relationship between the working capital attain and profitability calculated
by income to current assets and income to average total assets. Authors did
study with companies listed in BSE 200 that is spread over 19 industries for the
period 2000 to 2010.At the end, the study lay emphasis on that proficient
management of working capital notably affects profitability.

A.S. Kannan (2014), a study conducted on Indian MSMEs: Initiatives and

Financing Trends shows that MSMEs are most dynamic and significant organs
of an economy.MSMEs are backbone of our economy. The study looks into the
present scenario of MSMEs in India at macro level, but does not look deeply
into state -wide developments and details – for there are differential in
performance and development in MSMEs in different states in the country.

P. K. Bandgar (2015),a study on financial management of sick units shows that

industrial sickness is caused due to various factors, external or internal.
However, the sickness may be attributed to the poor working capital
management. Planning and control of working capital in sick unit needs special
attention. Finance manager requires to take steps to restructure the working
capital requirements by approaching banks for finance and try to improve
current and quick ratio by reducing the levels of investment in stock and
receivables.
Mr.V.Venkatachalam (2016), the researcher conducted a study on “Working
Capital Management on Mahindra and Mahindra Private Limited”. The main
objective of the study is to analyze whether the companies are viable in the long
run through ratio analysis and statement of changes in working capital. He
concluded that the overall working stability-soundness of the company has
improved over the years very well.

Chandra Hariharan Iyer (2016), a study on ethics in finance shows urgent

need for ethical accounting regulations in MSMEs because of its participation in
black money generation based on alarming facts as to the presence manipulation
of books of accounts and books of transactions like manipulation of sales,
receipts, bogus expenses, inflated purchases,manipulation of stock, etc which
shows wrong working capital and related ratios.

Akash B. Selkari and Omdeo Ghyar (2016),conducted a “Study on Working

capital of Mahindra and Mahindra Ltd” for a period of 3 years from 2015-18.
To study the working capital of the company ratio analysis technique was used.
They came to an end that the working capital of the company was satisfactory
because of maintaining proper inventory levels, cash, and other current assets
and a decrease in the current liabilities and provisions.

Singh et al. (2017), indicated that WCM is negatively connected with corporate
profitability, which means an aggressive WCM policy leads to higher
profitability.

Alak Kumar Das (2018), a study on liquidity management and corporate

profitability of Indian textile industry shows effective working capital
management is essential instrument to realise continuous profit which has direct
effect on value of the firm. In liquidity management textile sectors are not much
careful in maintaining conventional norms, they maintain conventional norms
only in case of quick ratio but current ratio and debt equity ratio are not
maintained according to conventional norms.
Dr.V. Bhuvaneswari (2020), highlighted the working capital which will
determine whether the position of the company from the working capital point
of view is sound and satisfactory. She concluded that the overall working
stability, soundness and overall financial performance have improved over the
years.
 CH:- 1 INTRODUCTION

Nestle india ltd. One the biggest player in FMCG segment is

primarily involved in food business which incorporates product group
viz. milk products and nutrition prepared dishes and cooking aids
powdered and liquid beverages and confectionery. The company
manufactures products under brand name such as nescafe , maggi ,
milkybar , milo , kit kat bar- one milkmaid and nestea. It has presence
across india with 8 manufacturing facilities and four branch offices
spread across the resign. The four branch office in the country help
facilitate the sales and marketing of its products. They are in delhi ,
Mumbai, Chennai and Kolkata.the company’s head office is located
in gurjaon Haryana. It has introduced products of daily consumption
and use such as nestle milk nestle silm milk nestle fresh’n’ natural
dahi and nestle jeera raita. Nestle india ltd has incorporated in the
year 1956.
The company set up their firsh production facility in the year 1961 at
moga in Punjab in the year 1947 they set up their second plant at
choladi in tamil nadu as a pilot plant to process the tea grown in the
area into soluble tea.

In the year 1989 they set up a factory at nanjangud in Karnataka. In

the year 1990 the company entered into the chocolate business by
introducing the nestle premium chocolate.

In the year 1991 they entered in joint venter floated by the parent in
collaboration with BM khaitan group to set up facilities to
manufacturing a range of soya based production.

In the year 1993 they set up the factory at samalkha in Haryana. In

the year 1995 the company launched the company’s world wide
legendary brand chocolate kitkat. The company commissioned two
factories in goa at ponda and bichliom in the year 1995 and 1997
respectively.

In the year 1999 the company lauchedthe product nestle growing up

milk nationally. In April 2000 they forayed into the ultra head treated
liquid milk market.in the year 2001 the company launched nestle pure
life bottled water. Within few months they launched second brand-san
Pellegrino – in the Indian market. The company also made their foray
into the iced tea segment.

In the year 2004 a project has been initated to upgread technology for
infant nutrition production at the samalkha factory. Nestle india Ltd
recognised for its outstanding performance in exports by the coffee
board of india in the export awards 2004-05 as the best exporter of
instant coffee best exporter to Russia & CIS countries (coffee) and
best exporter for far east countries(coffee). The company bestowed
the UDYOG RATNA award by the PHD chamber of commerce
industry to recognise nestle’s signification contribution to economic
development of Punjab for the year 2005.

The company set up new department the channel& category sales

development (CCSD) to develop a new solutions for the various
channels and customers and improve the implementation of
commercial plans in the the market. In the year 2006 the company set
up their seventh factory at pantnagar in Uttarakhand. In the year 2007

CNBC Asia presented the company with the India Innovator of the
year award. The company’s four factories were awarded the
internationally recognised external certification ISO 14001 for
adherence to environmental processes and OSHAS 18001 for Health

And safety. In the year 2008 the company launched Nestle Nesvita
pro-heart milk with Omega-3 in Mumbai. Nestle Nesvita pro-heart is
part of daily diet and has Omega-3 heart friendly nutrients
scientifically known to help manage cholestrol. As part of their
ongoing commitment to offering best in class nutrition products to
Indian consumers the company launched NESTLE NAN 3a follow-up
formulas for older infants. During the year MAGGI PICHKOO
Tomato Ketchup was launched in a unique easy to handle day pack to
drive affordability taste and convenience for a larger number of
consumer. The company also launched another pioneering product
MAGGI Bhuna Masala to cook tasty and healthy everyday meals
more conveniently. The company also launched Nestle Kitkat Mini
and Nestle Bar One Mini at Rs 3 price to expand the repertoire of
offerings. Similarly they launched Nestle Kitkat Chunky at Rs 15 to
strengthen the range of wellness oriented Nestle products that
consumers can choose from. The company's three more factories were
awarded the internationally recognized external certification ISO
14001 for adherence to environmental processes and OSHAS 18001
for Health and Safety. With this all the seven factories of the
company now have ISO 14001 and ISO 18001 certifications.In the
year 2009 the company provided inputs to the group R&D for
development of an innovative product Maggi Bhuna Masala. They
launched Maggi Nutri-Licious Pazzta. During the year Maggi further
leveraged their strengths to drive affordable nutrition and launched
two new products namely Maggi Rasile Chow and Maggi Masala-ae-
Magic. They launched Nestle Kitkat in a new unique single finger
format and Nestle Much Guru pack at the higher price point.The
company acquired the Healthcare Nutrition business of Speciality
Foods India Pvt Ltd with effect from January 1 2010. In 2011 Nestle
opens new plant in Karnataka investing Rs 360 cr. In 2013 the
company reviews the General Licence Agreement. The company also
acquires 26% minority stake in indocon agro and allied activities pvt
ltd. The company commences export of noodles sauces from New
Mangalore Port.In May 2015 Food Safety Regulators from the Uttar
Pradesh India found that samples of Nestle leading noodles Maggi
had up to 17 times beyond permissible safe limits of lead in addition
to monosodium glutamate. On 3 June 2015 New Delhi Government
banned the sale of Maggi in New Delhi stores for 15 days because it
found lead and monosodium glutamate in the eatable beyond
permissible limit. The Gujarat FDA on 4 June 2015 banned the
noodles for 30 days after 27 out of 39 samples were detected with
objectionable levels of metallic lead among other things. Some of
India's biggest retailers like Future Group Big Bazaar Easyday and
Nilgiris have imposed a nationwide ban on Maggi. Thereafter
multiple state authorities in India found unacceptable amount of lead
and it has been banned in more than 5 other states in India. On 5 June
2015 Food Safety and Standards Authority of India (FSSAI) orders
banned all nine approved variants of Maggi instant noodles from
India terming them 'unsafe and hazardous' for human consumption. In
June 2015 Nepal indefinitely banned Maggi over concerns about lead
levels in the product. On the same day Food Safety Agency United
Kingdom has launched an investigation to find levels of lead in
Maggi. Maggi noodles has been withdrawn in five African nations-
Kenya Uganda Tanzania Rwanda and South Sudan by a super-market
chain after a complaint by the Consumer Federation of Kenya as a
reaction to the ban in India.On August 2015 Govt of India made
public that it was seeking damages of nearly $100 million from Nestle
India for 'unfair trade practices' following the June ban on Maggi
noodles. The 6400 million rupee suit was filed with the National
Consumer Disputes Redressal Commission (NCDRC) regarded as the
country's top consumer court but was settled on 13 August 2015. The
court ruled that the government ban on the Nestle product was both
'arbitrary' and had violated the 'principles of natural justice.' Although
Nestle was not ordered to pay the fine requested in the government's
suit the court ruled that the Maggi noodle producers must 'send five
samples from each batch of Maggi [noodles] for testing to three labs
and only if the lead is found to be lower than permitted will they start
manufacturing and sale again. The ban has been repealed by the
Government of India with effect from the end of 2015 after the
company cleared court directed safety tests. The test results from all
laboratories mandated by the Bombay High Court have validated
Nestl India's position that MAGGI Noodles are safe for consumption.
The company resumed manufacturing at Pantnagar (Uttarakhand)
Factory and also resumes manufacturing of MAGGI at Tahliwal HP
unit. On 9 November 2015 Nestle India announced reintroduction of
MAGGI Noodles in the market. On April 2016 Nestle India
announced that MAGGI Noodles has further strengthened its
leadership position with more than 50% market share in the Noodles
category as per Nielsen report. On 21 April 2016 Nestle India
announced the launch of a brand new exotic range of Greek Yoghurt
under the brand name of NESTLE a+ GREKYO. NESTLE a+
GREKYO is a further brand extension of the NESTLE a+ range.On
29 April 2016 Nestle India announced the launch NESCAFE
SUNRISE INSTA-FILTER - which provides the taste of filter coffee
and yet does not require a filter. On 17 August 2016 Nestle India
announced the launch of new variants of MAGGI Noodles `MAGGI
HOT HEADS' and `MAGGI No Onion No Garlic Masala'. On 26
August 2016 Nestle India announced the launch of NESTLE a+ PRO-
GROW milk containing 20% higher milk protein. On 20 March 2017
Nestle India announced the launch of MILO Ready to Drink a cocoa-
malt milk beverage crafted specially for growing children. MILO
RTD has lower sugar with less than 10 grams of added sugar per pack
(180 ml). On 2 May 2017 Nestle India announced the launch of a new
range of MAGGI noodles in four new flavors - Amritsari Achari
Mumbaiya Chatak Super Chennai and Bengali Jhaal. On 9 May 2017
Nestle India announced the extension of its popular NESTLE a+
GREKYO range with the launch of Blueberry Greek Yoghurt and
Greek Style Curd. On 29 August 2017 Nestle India announced the
launch of MAGGI NUTRI-LICIOUS noodles range in four flavors -
Atta Masala Atta Mexicana Oats Masala and Oats Herbs & Spice.On
8 March 2018 Nestle India's food brand MAGGI completed 35 years
of existence in India. MAGGI began its journey in 1983 with the
launch of MAGGI 2-minute noodles.During the year 2018 all factory
laboratories of the company have received accreditation from the
National Accreditation Board for Testing and Calibration
Laboratories (NABL) which is aligned with ISO 17025 Standard.
Accreditation of Laboratories is considered to be an important
indicator of the technical competency to undertake the tests for which
the laboratory is accredited and further strengthen consumer trust in
the products.During 2018 the company bagged `Employee
Engagement Leadership Award' in the category `Best Initiative in
Benefits for Working Mothers' at the Employee Engagement
Leadership Converge 2018. Also recognized by Brand Equity as one
of the `Top 10 Ads of March 2018' for MAGGI MASALA-
AEMAGIC `Kuch Achha Pak Raha Hai' film. The company also been
awarded `Product Innovation of the year 2018' in the Nutrition
Category for NESTLE CEREGROW. The company won ET NOW
CSR Leadership Awards for the commendable work in the category
of `Concern for Health'.In line with zero defect mindset during 2019 a
special focus was given towards upstream raw material vendors for
products such as wheat flour tomato and chilly paste and sugar as well
as at company's factories ensuring right quality and compliant
product. All the offices and factories of the company are certified
under Safety and Health Management System that complies with ISO
45001:2018 & Environment Management System that complies with
ISO 14001:2015.The Company has been awarded AAA credit rating
for its bank credit facilities by CRISIL. It is the highest rating and
indicates a stable outlook for the Company. The rating reflects that
the Company has serviced its financial obligations on time. As
regards the short term facility provided by the bank the Company has
been awarded the credit rating of A1+. The rated instrument reflects
strong degree of safety and lowest credit risk.Nestle India won Best
Overall Excellence in CSR at the National CSR Leadership Awards
2019. The company also received three awards at Nielsen
Breakthrough Innovation Awards for NESCAFE Ready-to-Drink
(Emerging Play) MAGGI Masalas of India and KIT KAT Strawberry
Duo (both Short Term Play).Also bagged AskNestle / NINA' Gold for
Most Innovative Mobile Campaign of the year at MOBEXX Awards
2019. Nestle Health Science won Nutrition and Wellness Awards
2019 by CIMS Medical. MAGGI won at the 3rd edition of The
Advertising Club's MARQUEES Awards 2019 in the FMCG (Foods)
category. Nestle India Supply Chain won Leadership Awards 2019
during 13th ELSC Leadership Conclave in the category of Customer
Intimacy & Service Excellence Company of the Year. Moga Factory
of the Company was awarded The Golden Peacock National Quality
Awards held at Dubai (UAE). Moga Factory of the Company
received Golden Peacock Occupational Health & Safety Award for
the year 2019.The company is planning to spend Rs 26 billion on
capital investment.In FY'20 Company launched KOKO KRUNCH
and NESPLUS was renovated with new packaging. It launched
MAGGI Atta Spinach noodles for consumers seeking both taste and
nutritional benefits. It launched MAGGI Fried Rice Masala with two
spice mixes - Classic Veg and Chilli Garlic fried rice and MAGGI
Paneer-aeMagic Shahi Paneer and Kadhai Paneer Masala mix. It built
a strong Toddler portfolio with the launch of LACTOGROW Toddler.
Introduction of smaller 200g SKUs of RESOURCE HIGH PROTEIN
and RESOURCE DIABETIC in key channels helped consumers to
restart lives in the new normal lives.In 2021 Company launched
MAGGI Veggie Masala Noodles with vegetables in the iconic masala
taste. It launched MAGGI Special Chicken65 Masala Noodles. It
launched two new variants of MAGGI Hot n Sweet Sauce - `Sriracha'
and `Extra Hot'. MAGGI Masala-ae-Magic expanded in South India
with the launch of a new variant MAGGI Masala-vin-Magic. It
concluded `MAGGI Desh ke Liye 2 Minute - Apna Food Business'
initiative which received 10000 entries with funds equipment and
training to start their own food business. It launched Nestl? GOLD
Corn and Oat flakes in the cereals category. It launched KOKO
KRUNCH Kookie cereal strengthening the kids cereal portfolio.
KOKO KRUNCH was renovated with improved taste and increase in
whole grains. MILKMAID increased its engagement through digital
platform `milkmaid.in' by providing dessert recipe solutions for
baking enthusiasts. Its Ready-to-Drink beverage portfolio of
NESCAF? and MILO saw accelerated growth in home consumption
that was supported by an increase in distribution.In 2021 Company
accelerated growth building its presence in nutritional science through
products such as RESOURCE HIGH PROTEIN RESOURCE
DIABETIC and OPTIFAST. It renovated RESOURCE HIGH
PROTEIN with immunonutrients. It launched NESCAF? ALL in 1 - a
convenient coffee premix and NESCAF? Black Roast. It expanded
portfolio with launch of NESCAF? SUNRISE Liquid Decoction
which is a `ready-touse' coffee decoction for consumers desiring a
filter coffee experience. It commissioned a new KITKAT line in its
Ponda factory in Goa. It launched Nestl? MUNCH FRUIT O NUT. It
launched KITKAT Kookie & Cr?me flavor across all channels. In
2021 there was portfolio expansion with product launches across
Prepared Dishes and Cooking Aids and Coffee and Beverages
portfolio that supported the OOH business. It focused on
premiumizing the beverage portfolio through the scale up of
NESCAF? Roasted Whole Bean coffee and bean-to-cup solution. It
launched NESTEA Instant Green Tea Powder a 100% pure and
natural powder manufactured in the Choladi factory to provide
consumers with premium products for the OOH business. NESCAF?
Sunrise Strong with a stronger and more aromatic coffee-chicory
blend was introduced in South India. It invested into the kiosk
business through Entrepreneurship for Youth which helped create
livelihood and job opportunities for franchisers.