ON
“BENCHMARKING ON HR PRACTICES
& POLICIES”
Submitted in the Partial Fulfillment of PGDBM
Submitted By:
UDIT KAMTHANIA
ACADEMIC SESSION 2005-07
Under the guidance of:External supervisor
Mr. Devendra Gupta
Regional Manager HR, DABUR India Limited
Internal Supervisor
Prof. Poonam Malik
DECLARATION
I, Udit Kamthania student of Institute Of
Management Studies Ghaziabad MBA
(2005-2007) batch, hereby submitting my summer
project on the topic.
“BENCHMARKING ON HR PRACTICES &
POLICIES.”
Udit Kamthania
Roll No.
ACKNOWLEDGEMENT
In my Endeavour to express my corest feeling of the heart towards Dabur India Ltd. words like thank fullness obliged sound hollow. Words fall short at time of need so articulation of my feelings now seems as if Herculean task.
The learning experience I have gained from being part of Dabur India Ltd. for this small but enriched duration of two months can be described by,
“Ambition is the way to success
Persistence if the vehicle you arrive in”
In preparing this project, I would like to special acknowledgement to Mr. Devendra Gupta who suggested me with this project and also want to indebted to the people of Dabur India Ltd. I am truly confident that this project would help me in my career.
I have tried my level best to focus and articulate my knowledge.
Besides, I would like to thank my parents for their constant co-operation and help. I am also thankful to all the HR personal for the valuable insights provided by them.
Udit Kamthania
PGDBM Final Year
IMS-Ghaziabad(DC)
OBJECTIVES OF THE STUDY
The objective of the study is to find out the main HR practices &
policies of the different leading FMCG’s in India, like Hindustan
Liver Ltd. Nestle, ITC & Heinz India Pvt. Ltd. etc. they are not only
dominating the Indian market but abroad too. I have collected the
valuable information about these companies HR practices &
policies.
In the end I am satisfied with my efforts which I make to
achieve the objectives of the study.
BENCH MARKING
“Benchmarking is a tool to help you improve your business process. Any
business can be benchmarked.”
“Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organization anywhere in the world to
help your organization improve its performance.
“Benchmarking is simply about making comparisons with other organizations and then learning the lessons that those comparisons throw up.”
“Benchmarking is the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders (best in class).”
For those approaching benchmarking for the first time the plethora of definitions can be confusing, so it can help to focus on the learning and sharing that goes on during the process. The benchmarking is made up of the following steps;
• Identify what is to be benchmarked
•Create the goal of the benchmarking process somewhat better (Quantify), best in class or best in all classes
;
•Identify comparative companies where these performance levels exist or the function in questions;
•Determine data collection method and compare data;
•Determine current performance gap;
•Project future performance levels;
•Communicate benchmark findings and gain acceptance;
•Establish functional Goals;
•Develop action plans;
•Implement specific Excel and monitor progress;
•If necessary recalibrate benchmarks.
The case benchmarking is a compelling one. When used appropriately, it has proved to be one of the most effective tools for bringing about quantum-leaps in performance.
Benchmarking provides:
• An effective ‘wake-up call’ and helps to make a strong case for change;
• Practical ways in which steps changes in performance can be achieved by learning from others who have already undertaken comparable changes;
• The impetus for seeking new ways of doing things and promotes a culture that is receptive to fresh approaches and ideas; and
• Opportunities for staff to learn new skills and be involved in the transformation process from the outset.
In the Private Sector
In the private sector, the purpose of benchmarking is to gain a competitive edge. A benchmarking approach has become embedded in successful commercial organizations as a means of seeking innovation outside the industry paradigm-a way of keeping at the forefront of the competition. Recent surveys show that benchmarking is the third most used management tool. Benchmarking is also being recognized as a valuable tool for external learning strategies.
In the Public Sector
Over recent years, public sector organizations across the world have gradually been turning to benchmarking their public services. It has also been recognized that efficient and effective public services play a vital part in improving private sector competitiveness by reducing the burden on business and compliance costs.
Benchmarking is one way of providing the stimulus needed for change in the delivery of both core and non-core activities and for raising the standard of public services by spreading good practices.
Encouraging the widespread and systematic use of benchmarking across the public sector can help with improving performance and can assist individual and organizational learning.
Types of Benchmarking
Benchmarking is a very versatile tool that can be applied in a variety of ways to meet a range of requirements for improvement.
Different terms are used to distinguish the various ways of applying benchmarking. The first word in each term relates to either the type of partner or the purpose of benchmarking. At the outset of benchmarking projects, it is vital to be clear on exactly what is to achieved through benchmarking and apply an appropriate methodology.
Standard benchmarking terms include;
1. Strategic Benchmarking
2. Performance Benchmarking or Competitive Benchmarking 3. Process Benchmarking
4. Functional Benchmarking or Generic Benchmarking 5. Internal Benchmarking
6. External Benchmarking 7. International Benchmarking
Research Methodology
A research methodology defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success. It focuses primarily on providing help with the tools and techniques used in the research process.
These tools and techniques differ from discipline. Researchers also have specific biases. Some will prefer qualitative over quantitative approaches or vice – versa. Generally speaking, an integrated approach is advisable. A study that contains only qualitative data or solely quantitative data misses the rich texture of interpretation that an integrated approach makes possible.
To fulfill the objective, the research design was as
follows:
Collection of Primary Data:
The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character.a. A survey was conducted where from the HR Personals I asked about their views on various aspects of the recruitment & selection procedure.
b. The sample size selected for the research was 10 FMCG’s.
c. The tool used for the primary data collection was a detailed questionnaire.
The collection of primary data was done in two
phases:
a. Through individual interviews b. Through telephonic interviews
Collection of secondary data:
The secondary data are those, that have already been collected by someone else and which have already been passed through the statistical process.Secondary data was collected through business magazines and from internet.
The research instruments used
:
1.
For primary data:
A detailed questionnaire to survey the HR departments Structured telephonic interviews
2.
For secondary data:
Internet (www.google.com) (www.altavista.com) Business Magazines (Business World) (Business India).Research Design
It is a conceptual structure within which the research is conducted; it comprises of the blueprint for the collection, measurement and analysis of data.
The research design of this project in the former part is ‘Exploratory’ while the later part is ‘Conclusive’ i.e. where on the basis of the findings and analysis; suggestions have been given to improve the services in the concerned areas.
Objectives Of Research
The objective of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad
categories:--I. To gain familiarity with a phenomenon or to achieve new insights into it.
II. To portray accurately the characteristics of a particular individual, situation or a group.
III. To determine the frequency with which something occurs or with which it is associated with something else.
THE OBJECTIVE OF THIS RESEARCH IS TO MAKE COMPARATIVE ANALYSIS AMONG HR PRACTICES & POLICIES OF DIFFERENT FMCG’s IN INDIA.
Limitations
In face-to-face interviews:
The limitations in face to face interviews was that primarily people were hesitant in giving their views apart from this the HR personal did’nt give the answers to few of the questions saying that these things are confidential and we cannot disclose these policies.
In telephonic interviews:
The limitations in telephonic interviews was that the interviewee were not very concentrated while responding to the questions, in many cases the respondents were short of time due to which they again could not answer the questions properly.
QUESTIONNAIRE
Questionnaire is considered as the heart of a survey operation. So, it should be very carefully constructed. If it is not properly setup, then the survey is bound to fail.
A questionnaire consist of a number of questions printed or typed in a definite order on a form or set of forms. The questionnaire is distributed to the respondents who are expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself.
The method of collecting data by mailing the questionnaires to the respondents is most exclusively employed in various economic and business surveys. Large samples can be made use of and thus the results can be made more dependable and reliable.
Construction of Questionnaire:
A detailed questionnaire was prepared keeping in mind the various HR practices & policies of FMCG’s.
Another thing that was kept in mind was that since people cannot spare much time to answer the questionnaire, it was made in such a way that even after covering the vast services, yet the questionnaire was short and precise as all the questions barring a couple of them were close ended.
Dabur India Ltd.
Kaushambi Corporate Office
Corporate Office
DABUR INDIA LTD. Kaushambi Ghaziabad - 201010 Uttar Pradesh, India
Tel: +91 (0120) 3982000 (30 Lines)
+91 (0120) 3001000 (30 Lines)
Registered Office
8/3, Asaf Ali Road, New Delhi – 110 002
Founding Thoughts
“What is that life worth which cannot bring comfort to others.”
The doorstep ‘Daktar’
The story of Dabur began with a small but visionary endeavour by Dr.S.K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague. Soon the news of his medicines traveled and he came to be known as the trusted ‘Daktar’ or Doctor who came up with effective cures. And that is how his venture Dabur got its name – derived from the Devanagri rendition of Daktar Burman.
Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic Medicines. Reaching out to a wide mask of people who had no access to proper treatment. Dr. S.K. Burman’s commitment and ceaseless efforts resulted in the company growing from a fledgling medicines manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability. More than a century after Dr. S.K. Burman setup his company with the vision of good health for all, Dabur has grown many fold. It is now a leading nature base health and family care product company.
FOUNDER OF DABUR INDIA LIMITED
DR. S. K. BURMAN
NEW PARADIGMS
Gearing towards a new system where the direct involvement of the family is limited, the Burmans have formulated a Family Council, which acts as an interface between the family and the Board and management of Dabur.
The family members involvement has come in for a qualitative shift, with fresh members being encouraged to develop their own ventures. These proposed ventures are then presented to the Family Council for approval and funding.
DABUR AT A GLANCE
Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.
Leading consumer goods company in India with 4th largest turnover
of Rs.1329 Crore (FY02)
2 major strategic business units (SBU) - Consumer Care Division
(CCD) and Consumer Health Division (CHD)
3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and
Dabur International and 3 step down subsidiaries of Dabur
International - Asian Consumer Care in Bangladesh, African
Consumer Care in Nigeria and Dabur Egypt.
13 ultra-modern manufacturing units spread around the globe
Products marketed in over 50 countries
Wide and deep market penetration with 47 C&F agents, more than
CCD, dealing with FMCG Products relating to Personal Care and Health Care
Leading brands -
Dabur - The Health Care Brand Vatika-Personal Care Brand Anmol- Value for Money Brand Hajmola- Tasty Digestive Brand
and Dabur Amla, Chyawanprash and Lal Dant Manjan with
Rs.100 crore turnover each
Vatika Hair Oil & Shampoo the high growth brand
Strategic positioning of Honey as food product, leading to market
leadership (over 40%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with
over 65% market share.
Leader in herbal digestives with 90% market share
Hajmola tablets in command with 75% market share of digestive
tablets category
CHD (Consumer Health Division)
Dealing with classical Ayurvedic medicines
Has more than 250 products sold through prescriptions as well as over
the counter
Major categories in traditional formulations include:
-AsavArishtas -RasRasayanas -Churnas
- Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
-NatureCareIsabgol -Madhuvaani
Dabur
V
ision
“Dedicated to the Health & Well-Being of every Household”
PRINCIPLES
Ownership
This is our Company and we accept personal responsibility and accountability to meet business needs.
Passion for Winning
We all are leaders in our area of responsibility with a deep commitment to deliver results. We are determined to be the best at doing what matters the most.
People Development
People are our most important asset. We add value through result driven training, While encouraging and rewarding excellence.
Consumer Focus
We have superior understanding of consumer needs and develop products to fulfill them.
Team Work
We work together on the principle of mutual trust and transparency in a boundary-less organisation.
Innovation
COMPANY HISTORY
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow.
1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established
Early 1900s - Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science.
1930 - Automation and up gradation of Ayurvedic products manufacturing
initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1936 - Dabur (Dr. S
K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India.
1949 - Launched Dabur Chyawanprash in tin pack
Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India.
1957 - Computerisation of operations initiated
1970 - Entered Oral Care & Digestives segment Addressing rural markets
where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses.
1972 - Shifts base to Delhi from Calcutta
1978 - Launches Hajmola tablet Dabur continues to make innovative
products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet
1979 - Dabur Research Foundation set up
1979 - Commercial production starts at Sahibabad, the most modern herbal
medicines plant at that time
1984 - Dabur completes 100 years
1988 - Launches pharmaceutical medicines
1989 - Care with fun The Ayurvedic digestive formulation is converted into
a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage.
1994 - Comes out with first public issue 1994 - Enters oncology segment
1994 - Leadership in health care Dabur establishes its leadership in health
care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice 1996 - Real
blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country.
1998 - Burman family hands over management of the company to
professionals
2000 - The 1,000 crore mark Dabur establishes its market leadership status
Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses.
2001 - Super specialty drugs with the setting up of Dabur Oncology's sterile
cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4
crore
Maintaining global standards
As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002
certification
Science for nature
Reinforcing its commitment to nature this scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation.
2005 - Dabur aquires Balsara
2006 - Dabur announces bonus after 12 years
2006 - Dabur crosses $2 bin market cap, adopts US GAAP. and its
conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal.
Boards of Directors
Dabur has an illustrious Board of Directors who is committed to take the company onto newer levels of human endeavour in the service of mankind. The Board comprises of:
Chairman Vice-Chairman
Mr. V.C. Burman Dr. Anand Burman
Whole Time Directors
Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip Burman
Non Whole Time Promoters, Directors
Mr. Amit Burman
Independent Directors
His Highness Mr. Stuart Purdy Mr. P N Vijay Mr. R C Bhargava
STRATEGIC INTENT
We intend to significantly accelerate profitable growth. To do this, we will:
Focus on growing our core brands across categories, reaching out to
new geographies, within and outside India, and improve operational efficiencies by leveraging technology
Be the preferred company to meet the health and personal grooming
needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science
Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader Be a professionally managed employer of choice, attracting,
developing and retaining quality personnel
Be responsible citizens with a commitment to environmental
protection
Provide superior returns, relative to our peer group, to our
CORE VALUES
Ownership: This is our company. We accept personal responsibility, and
accountability to meet business needs
Passion For Winning: We all are leaders in our area of responsibility, with
a deep commitment to deliver results. We are determined to be the best at doing what matters most
People Development: People are our most important asset. We add value
through result driven training, and we encourage & reward excellence
Consumer Focus: We have superior understanding of consumer needs and
develop products to fulfill them better
Team Work: We work together on the principle of mutual trust &
transparency in a boundary-less organisation. We are intellectually honest in advocating proposals, including recognizing risks
Innovation: Continuous innovation in products & processes is the basis of
our success
Integrity: We are committed to the achievement of business success with
integrity. We are honest with consumers, with business partners and with each other
WHY DABUR HAS CHANGE ITS LOGO
The New Dabur Identity modernizes the 100-year old equity of the Dabur
brand by subtly transforming the tree. While it retains the essence of the banyan tree, it now projects a contemporary image, in consonance with today's lifestyle.
The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a symbol of fertility. The new Dabur identity retains these enduring and valuable attributes, while it adds a fresh, healthy and holistic dimension to the tree.
In the new identity lock-up, distinct elements collaborate to tell a story, even as they work independently to achieve the delineated objectives.
The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's heritage, commitment and stability through the form and colours of the tree; its branches and leaves. It also conveys that the brand stands for wellness across age groups
The tree trunk mirrors the form for three people with their arms raised
conveying exultation in achievement. The broad trunk represents stability and its multiple branches represent growth. Taken as a whole, the tree appears well rooted, implying stability; and its abundant canopy implies that it can provide amply for those who seek its produce and shade. Further, the entire image, being well proportioned, evokes a harmonious, well-balanced, wholesome and holistic brand.
In India, The tree is a symbol of life. It is a giver of fuel, food and protection. It is a heaven for creatures it generously harbors in its foliage, as well as in the shade of its canopy. The tree is held auspicious as it spreads through the three spheres with its roots meshing through the earth, its trunk rising through the terrestrial world and its branches reaching into the heavens. This symbolism also occurs in cultures across the world. Keeping these vital associations in mind, the tree in the new Dabur identity has been carefully created to communicate Dabur's invaluable 100-year old legacy as well as its future aspirations. It now takes on a younger avatar, in its form and colors, and strikes a rapport with the consumer as a proactive brand with a commitment to wellness and to nurturing an active lifestyle across age groups.
The leaf is a vital part of a tree. Its functions include the manufacture of
food for the plant, transpiration and respiration. A tree full of leaves represents growth, vitality, rejuvenation and renewal. The new Dabur identity of a tree with a full canopy, bursting with leaves, conveys youth and health. Its foliage captures the spirit of an evergreen tree that constantly replaces its leaves as they age and fall. The new Dabur logo, of a tree that is constantly renewing its leaf cover, thus signifies endurance, power and longevity. The leaves in dual colors reflect the combination of stability and freshness of thinking of the company & brand.
The soft orange color selected for the trunk, rather than a dark brown, is
redolent of warmth and energy. It suggests a young and youthful tree, thus tactfully breaking down the association of the brand with advanced years. It is a joyful, stimulating color that makes for a high-visual impact, yet does so with a friendly, inviting and soothing stance.
The green colour of the leaves instantly indicates nature's freshness, life
and growth. The leaves are neatly divided into two colours: a fresh light green that implies a young leaf, and a darker green that represents an older and mature leaf. By juxtaposing these two colours in each leaf, the brand indicates that it seamlessly blends the old and the new, and also offers a product that is equally suited to the young and elderly. It indicates an on-going process of growth, evolution and renewal.
The Dabur front
Dabur’s association with nature is evident in the simple yet unique logo. The Dabur font has been created as an echo of the earlier font to preserve its distinctive and established identity. Yet, it has moved on to a more contemporary style.
The tip of the “D” emulates the apex of an aleaf thus infusing the alphabet with a form and flow that discreetly suggests the effect of a leaf. The defined yet gentle curve of “D” forms an arc of trust, caring and support.
The identical look
Dabur’s association with nature is evident in the simple yet unique logo. The Dabur font has been created as an echo of the earlier font to preserve its distinctive and established identity. Yet, it has moved on to a more contemporary style.
The tip of the “D” emulates the apex of an aleaf thus infusing the alphabet with a form and flow that discreetly suggests the effect of a leaf. The defined yet gentle curve of “D” forms an arc of trust, caring and support.
PRODUCTS
HEALTH CARE
Dabur's Health Care range brings for you a wide selection of herbal products, to provide complete care for varying individual needs. We derive our products from the time-tested heritage of Ayurveda, backed by the most modern scientific test and trials. That ensure unfailing quality and safety in anything you pick.
Dabur Health Care Product Range
Dabur Chyawanprash-Dabur Chyawanshakti-Glucose
D-Dabur Lal tail-Dabur Baby olive oil-Dabur Janma
Ghunti-Hajmola Yumstick
-Hajmola Mast Masala -
Anardana -
Hajmola Hajmola candy Hajmola Candy Fun2 Pudin hara (Liquid and pearls)
Pudin hara G - Dabur Hingoli Shilajit Gold Nature Care Sat Isabgol Shilajit Ring Ring Itch Care Backaid Shankha Pushpi Dabur Balm Sarbyna Strong
-PERSONAL CARE
Dabur presents its range of herbal personal care products, created to make you look and feel good deep down. Bringing together the gentle touch of nature and Ayurveda’s wisdom. Backed by the unfailing quality of Dabur Products.
Dabur Personal Care Product Range
Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil -Anmol Sarson Amla -
- Anmol Silky Black Shampoo
- Vatika Henna Conditioning Shampoo
- Vatika Anti-Dandruff Shampoo
- Anmol Natural Shine Shampoo
Gulabari
-Vatika Fairness Face Pack - - Dabur Red Gel
- Dabur Red Toothpaste - Babool Toothpaste - Dabur Lal Dant Manjan - Dabur Binaca Toothbrush
Fo r nearly 100 years, Dabur has specialised in developing and producing herbal Ayurvedic formulations. Today Dabur's Ayurvedic Specialties has over 260 medicines for treating a range of ailments and body conditions - from common cold to chronic paralysis. This range is handled by Dabur Ayurvedic Specialties Limited division, which constitutes 8% in Dabur's total revenue of Rs.1899.57 crore.
FOODS
Stay healthy, stay fit - and eat only nature’s best.
With products from our Foods range that are pure and full of nutrition, taking
care of your fitness while providing exciting flavours and tastes to your dishes.
Dabur Food range
Tastes like eating a fruit
100% Natural Fruit Juice Pure natural Honey
Hommade - a range of
culinary ingredients giving you 'The taste
of Indian Kitchen'.
Lemoneez is a Natural Lemon Juice
Capsico - a fiery red-pepper sauce.
SWOT ANALYSIS OF DABUR
STRENGTHS
• A trusted, successful & globally known brand
• Old brand recognition
• Good R & D department
WEAKNESSES
• Less Economies of Scale as compared to other big brands
• Poor Advertising of Dabur Nature Care
OPPORTUNITIES
• Increasing health consciousness among people
• Increasing Market share
• Brand Loyalty among people
THREATS
• Well-established Competitors
• Brands like Colgate, Pepsodent &Close up has
• High brand image & Consumer Awareness
• MNC’s can be a big threat to our Market share in terms of qualities like:
o More Choice o Cheaper Price
HINDUSTAN LEVER LIMITED
Corporate Communications Department
Hindustan Lever Limited
Hindustan Lever House
165/166, Backbay Reclamation
Mumbai - 400020
Maharashtra
India.
Tel: +91-22-39830000
Fax: +91-22-22871970
Email: [email protected]
Introduction
Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HLL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores.
The mission that inspires HLL's 36,000 employees, including about 1,350 managers, is to "add vitality to life". With 35 Power Brands, HLL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.
It is a mission HLL shares with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.
MISSION
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.
The Vision
Our vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of our operations.
We will achieve this through an Integrated Environment Management approach, which focuses on People, Technology and Facilities, supported by Management Commitment as the prime driver.
PAST MILESTONES
Over 100 years' link with India
Chronology
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HLL in November 1956; HLL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HLL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company.
HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired.
Finally, BBLIL merged with HLL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories.
In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HLL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the government's remaining stake in Modern Foods.
In 2003, HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.
PRESENT STATURE
Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores.
HLL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.
The mission that inspires HLL's 36,000 employees, including over 1,350 managers, is to "add vitality to life." HLL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HLL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions.
HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in close to 80 factories. The operations involve over 2,000 suppliers and associates. HLL's distribution network, comprising about 7,000 redistribution stockists, directly covers the entire urban population, and about 250 million rural consumers.
HLL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (HLRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe.
HLL believes that an organisation's worth is also in the service it renders to the community. HLL is focusing on health & hygiene education, women empowerment, and water management. HLL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HLL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India.
Over the last three years the company has embarked on an ambitious programme, Shakti. The programme now covers about 50,000 villages in 12 states. HLL's vision is to take this programme to 100,000 villages impacting the lives of over a 100 million rural Indians.
HLL is also running a rural health programme – Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 70 million people in approximately 15000 villages of 8 states. The vision is to make a billion Indians feel safe and secure.
If Hindustan Lever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.
BUSINESSES
Home & Personal Care • Personal Wash • Fabric Wash • Home Care • Oral Care • Skin Care • Hair Care • Deodorants & Talcs • Colour Cosmetics Foods • Tea • Coffee • Branded Staples • Culinary Products • Ice Creams • Modern Foods ranges New Ventures • Hindustan Lever Network • Ayush ayurvedic products & services • Sangam • Pureit water purifiers Exports • HPC • Beverages • Marine Products • Rice • Castor
QUALITY POLICY
Hindustan Lever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates.
The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence, innovation and quality management across our businesses, and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value.
The company recognises that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organisation at all levels.
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them.
The company is committed to extend its quality standards to its contract manufacturers, key suppliers and service providers and by entering into alliances with them, to jointly improve the quality of its products and services. This policy is applicable to production from its own facilities as well as to production that is outsourced.
The company will periodically review this quality policy for its effectiveness and consistency with business objectives.
The company delegates authority and responsibility for dissemination and implementation of this policy to each Business and Unit Head.
ITC LIMITED
Registered Office:
ITC Limited,
37 J.L. Nehru Road,
Kolkata- 700071
India.
Tel: +91-33-22889371
HISTORY
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened.
Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf
Tobacco businesses, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the Company.
ITC's Packaging & Printing Business Division, was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel
Chola'. The objective of ITC's entry into the hotels business was rooted in
the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 65 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the
International Business Division (IBD) for export of agri-commodities. The
Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 7 states covering over 3.5 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. The year 2006 witnessed the ramping up of the Company's rural retailing network with 10 'Choupal Saagars' being operational in three states of Madhya Pradesh, Maharashtra and Uttar Pradesh. Nine more 'Choupal Saagars' are in an advanced stage of construction and will be launched shortly.
In 2000, ITC's Packaging & Printing business launched a line of high
quality greeting cards under the brand name 'Expressions'. In 2002, the
product range was enlarged with the introduction of Gift wrappers,
Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight
languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include
Wills Classic formal wear (2002) and Wills Clublife evening wear (2003).
ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In December 2005, ITC introduced Essenza
Di Wills, an exclusive line of prestige fragrance products, to select 'Wills
Lifestyle' stores. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. In a short span of 5 years, ITC
Infotech has already crossed over US$ 60 million in revenues. It also has a
joint venture with ClientLogic, a top five global Business Process Outsourcing (BPO) provider.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of
'Kitchens of India' ready-to-eat Indian gourmet dishes. In June 2002 ITC
years, the Foods business has grown to a significant size with 100 differentiated products, five distinctive brands, an enviable distribution reach, a rapidly growing market share and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety
Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, VaxLit, Delite and Aim.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
THE ITC PROFILE
ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 13 billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by BusinessWorld, ITC ranks third in pre-tax profit among India's private sector corporations.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practises this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.
ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to be rated for Corporate Governance by ICRA, an associate of Moody's Investors Service, which accorded it the second highest rating, signifying "a high level of assurance on the quality of corporate governance."
ITC employs over 20,000 people at more than 60 locations across India. Ranked among India's most valuable companies by the 'Business Today' magazine, ITC continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,60,090 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."
Vision
FOODS
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments.
The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. Apart from the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bangalore.
Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 90 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business.
The Foods business is today represented in 4 categories in the market. These are:
• Ready To Eat Foods • Staples
• Confectionery • Snack Foods
In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class hygiene standards through HACCP certification. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 5 brands:
• Kitchens of India • Aashirvaad
• Sunfeast • Mint-O • Candyman
LIFESTYLE RETAILING
Over the last six years, ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Beginning with its initial offering of Wills
Sport relaxed wear from the first store at South Extension, New Delhi in
July 2000, it has expanded its basket of offerings to the premium consumer with Wills Classic work wear, Wills Clublife evening wear and a tempting range of designer accessories that complete the Look.
With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the youth of today. With its brands, ITC aspires to build a dominant presence in the apparel market through a robust portfolio of offerings.
ITC's Wills Lifestyle believes in the philosophy of 'Enjoying the Change' - the change that comes through actively exploring one's own multifacetedness and stretching one's limits. This season, Wills
Lifestyle presents a complete fashion
wardrobe that complements every facet of your lifestyle - at work, when you're relaxed and while you party.
NESTLÉ INDIA LTD
Nestlé India Ltd.
Nestlé House, Jacaranda Marg
M Block, DLF City Phase II
Gurgaon 122 002 - Haryana
India
Phone : +91 124 238 93 00
Fax : +91 124 238 94 11
History:
1866 – 1905
In 1860s HENRI NESTLE, a Pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother’s milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestle’s new formula saved the child’s life, and soon, Farine Lactee Henri Nestle was being sold in much of Europe.
1905 – 1918
In 1905 Nestle merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. I World War created new demand for dairy products in the form of government contracts. By the end of the War, Nestle’s production had more than doubled.
1918 – 1938
After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestle’s management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestle’s first expansion into new products, with chocolate the Company’s second most important activity.
1938 – 1944
Nestle felt the effects of II World War immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company’s newest product, Nescafe, which was a staple drink of the US military. Nestle’s production and sales rose in the wartime economy.
1944 – 1975
The end of World War II was the beginning of a dynamic phase for Nestle. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby’s (1971) and Stouffer’s (1973). Diversification came with a shareholding in L’Oreal in 1974.
1975 – 1981
Nestle’s growth in the developing world partially offset a slowdown in the company’s traditional markets. Nestle made its second venture outside the food industry by acquiring Alcon Laboratories Inc..
1981 – 1996
Nestle divested a number of business 1980/1984. In 1984, Nestle’s improved bottom line allowed the company to launch a new round of acquisitions, the most important being American food giant Carnation.
1996 +
The first half of the 1990’s proved to be favorable for Nestle: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002).There were two major acquisitions in North America, both in 2002: in July, Nestle merged its U.S. ice cream business into Dreyers, and in August, a USD 2.6bn acquisition was announced of Chef American Inc..
At a Glance
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. We employ around 250,000 people and have factories or operations in almost every country in the world.
The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.
Business Principles
Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a neighbor’s child, the Nestlé Company has aimed to build a business based on sound human values and principles.
While our Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of our Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.
Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:
• Nestlé's business objective is to manufacture and market the
Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.
• Nestlé does not favor short-term profit at the expense of successful
long-term business development.
• Nestlé recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist.
• Nestlé believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.
