PROJECT REPORT

COMPANY:
“NESTLE FACTORY, KABIRWALA”
TABLE OF CONTENTS
1. Introduction
2. MD’s Message
3. Vision & Strategy
4. Corporate & Legal View
5. Globe
6. Marketing & Sales
7. Human Resources
8. Factories of Nestle
9. Inauguration of Kabirwala Factory
10. Supply Chain
11. Agri Services
12. Milk Collection
13. The Nestle Miracle
14. Milk Collection System
15. Helping the Farmers
16. A Quiet Revolution
17. Nestle Brands
18. Quality Assurance
19. Corporate Social Responsibility
20. Creating Shared Value
21. Environment
22. Health
23. Society
24. Commitment to Good Living
25. Heart of Nestle
26. Earth-Quake Relief
27. Getting Connected
28. Consumer Services
29. Financial Data
30. References
Nestlé has been serving Pakistani consumers since 1988, when our parent
company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak
Ltd.
Today we are fully integrated in Pakistani life, and are recognised as producers
of safe, nutritious and tasty food, and leaders in developing and uplifting the
communities in which we operate.
We at Nestlé Pakistan ensure that our products are made available to consumers
wherever in the country they might be. Convenience is at the heart of the Nestlé
philosophy, and our aim is to bring products to people's doorsteps.
• A History of Service
In line with our parent company's global philosophy, we are proud of our
commitment to excellence in product safety, quality, and value. Our
products cater to human needs, and we are active in the communities we
serve.
From spreading awareness about nutrition and wellness to digging wells
in the Thar desert and succouring earthquake victims, we are committed
to serving our country and its people.
The consumer's voice is key to Nestlé Pakistan's vision and working.
Whether you live in the remotest village or the metropolis of Karachi,
our consumer services team stands ready to listen to your concerns and
provide answers about our products and guidance on matters of health
and wellness.
Commitment to excellence, good food & good life are words that best
describe Nestlé. We at Nestlé Pakistan are a team of people committed
to adding value to the lives of the Pakistani people by helping them live
a life full of wellness & vitality .

We welcome you to this life.

Nestlé with its operational excellence, best management practices and

total commitment to quality has you our consumer at the heart of
everything we do.

We sincerely thank you for believing in Nestlé and our products &
making our journey to success ever more possible.

Our aim is to make our consumers well aware of what they eat and how
to take care of their nutritional needs. We, therefore, invite you to get to
know our products better and to look at our unique features on this
website where you will discover informative pieces that will help you
make healthier and balanced choices in your and your families lives.

Nestlé is on accelerated growth with a motto to celebrate life by

providing its consumers quality food products that are essential to good
living.

Enjoy your visit to our Nestlé Pakistan website and we hope you will
visit again often.

We wish you Good Food Good Life

Ian James Donald

Managing Director
The Nestlé global vision is to be the leading health, wellness, and nutrition company in the
world. Nestlé Pakistan subscribes fully to this vision. In particular, we envision to:
Lead a dynamic motivated and professional workforce – proud of its heritage and bullish
about the future.
Meet the nutritional needs of consumers of all age groups – from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food and beverage products
of the highest quality.
Deliver shareholder value through profitable long-term growth, while continuing to play a
significant and responsible role in the social, economic and environmental sectors of the
country.
We have profitable and diversified high quality food and beverage product portfolio,
delivering 60:40+ advantage to consumers, available across all sales channels.
Our brands are the preferred choice in their categories. Consumer insight drives all aspects of
our marketing and communication efforts.
Our communications to the consumer are relevant, cutting-edge, and adhere to the highest
standards of responsible communication.
Our company is seen as the No. 1 career destination for talented, motivated and ambitious
professionals.
Our result-oriented organisational structure ensures effective communication and empowered
self-management.
Our milk collection and agri services will continue to play the primary role in development
of the dairy sector in rural Pakistan.
Our proactive innovation and renovation culture is the key to our success in the marketplace.
Fully integrated systems (Nestlé Pakistan, suppliers, customers) ensure efficient business
processes.
Non-strategic activities and products are outsourced or discontinued.
Nestlé Pakistan Ltd is a subsidiary of Nestlé SA, headquartered in Vevey, Switzerland. We
are a standard-bearer of Nestlé SA's global performance; registered on the Karachi and
Lahore stock exchanges, for the past five years we have been declared one of the top 25
companies on the Karachi Stock Exchange.

Headquartered in Lahore, we serve both Pakistan and Afghanistan. Of our five production
facilities, two manufacture a wide range of products. The remaining three produce NESTLÉ
PURE LIFE.

Our legal advisors are Cheema & Ibrahim (Advocates), and our audits are performed by
KPMG Taseer Hadi & Co (Chartered Accountants).
• Corporate Governance Principles

We are dedicated to following the best practices laid down by our parent company,
Nestlé SA. We have implemented the Corporate Governance Principles established
by Nestlé SA, covering four core areas:

• Rights and responsibilities of shareholders

• Equitable treatment of shareholders

• Duties and responsibilities of the board of directors

• Disclosure and transparency

• Corporate Internal Audit

Recognising the need to maintain transparency and verify the application of corporate
standards, Nestlé Pakistan has established an internal audit department that monitors
administrative and operational functions throughout the company. Thanks to its
operations, we can be assured that adequate internal controls are in place,
management information is reliable, resources are used effectively, and company
assets are safeguarded.
As the world's number one Food and Beverages Company, Nestlé is
a complex organisation, operating in challenging and varied business
environments.

To fulfil our commitment to serve our customers better, we are

adopting common business practices in all areas of business.

This vision is at the heart of GLOBE – Global Business Excellence,

and Nestlé Pakistan is proud to be part of this international initiative.

We know that by standardising the way we capture and report

business data, and by putting our IT infrastructure on a global
platform, we can be more flexible and focused on our products and
brands, and therefore more responsive to our customers.

• GLOBE Launch in Pakistan

On 7 February 2005, the System Application Products (SAP)

implementation project was successfully concluded in Pakistan.

All Nestlé Pakistan sites, including the head office, factories,

distribution centres and zonal sales offices, migrated to SAP, a state-
of-the-art information technology system.

The Nestlé Pakistan GLOBE team helped streamline almost every

area of operation, allowing the company to become more efficient as
well as more consumer-focused.

With Nestlé Pakistan growing at its present high rate, the successful
implementation of the GLOBE programme has improved our
business processes, operational efficiency and communication/IT
infrastructure.

We can now focus on ensuring a better level of service, and

providing satisfying and healthy products for our consumers, for
many years to come.
 We want Nestlé products to be within reach for every single
Pakistani. Yet nutritional value and quality remain the most essential
ingredients in all our brands.

Over the years, food products have evolved from mere commodities
to a statement of lifestyle. As consumers get more health and quality
conscious, consumer empowerment surges.

We continue to play our part in facilitating this revolution by

launching value-added products such as CERELAC, NESTLÉ Raita,
NESVITA and NIDO NNS and many other dairy and non-dairy
products. Consumers can avail many of our products with branded
active benefits that no competitor product offers.

Nestlé brands are designed to suit your lifestyle and your needs. You can take advantage of the best
nutrition in a way that is suitable for your tastes and lifestyle.

For instance, you can purchase NESTLÉ Juices in several different sizes depending on your needs: a
personal-sized 200 ml for on-the-go consumption, or a litre pack for your fridge.

All our key brands are equipped with the Nutritional Compass that ensures all the nutritional
information about the product is accessible thanks to our user-friendly nutritional labelling and
guidelines.

We're proud to be among the only companies in Pakistan to venture outside the commercial mode of
communication, offering programmes catering to better child nutrition and good parenting.

We have developed an intensive distribution strategy that brings our products to your door, through
effective communication, door-to-door sampling, and exciting consumer promotions.

We focus especially on Pakistan's smaller towns, where activities such as town storming, distribution
drives and intensive distributor training ensure that products are easily accessible and visible, giving
us a strong competitive edge.

Our widespread global network presents opportunities to learn from innovative techniques used in
faraway countries. Pakistan has contributed in a big way towards this by introducing Nestlé NESTLÉ
PURE LIFE to the world. Pakistan’s favourite water is now available all around the world!
HR is dedicated to our employees, and ensures that we have all the
right people with the right skills, in the right places at the right
time.

Understanding that our people are the bedrock of all our business
strategies, it is our mandate to enhance their skills with cutting-
edge training and provide them with world-standard facilities.

We select flexible, innovative people who are ready to confront

new challenges and make a difference. Our groundbreaking
Management Trainee Programme aims to develop talented young
men and women and help them achieve their potential in a
dynamic and enabling environment.

Over a hundred people travel out of the country every year to take
advantage of our international training and development events.
Factories:
Our products are manufactured in five facilities scattered around the country, from
Islamabad in the north, to Karachi in the south.

Two state-of-the-art multipurpose factories are located in the agricultural heartland

of the Punjab, and the remaining three are dedicated to producing our trusted
brands of bottled water.

As citizens of Pakistan, we consider it our duty to make sure that our

manufacturing processes are clean, hygienic and safe.

We are constantly working to reduce emissions at our factories, reducing and

treating wastewater, and making our packaging environmentally friendly. Regular
audits have confirmed that our factories' environmental management meets the
Nestlé international standard.

As is the Nestlé policy around the world, we care for our people. We uphold the
principles of the UN Global Compact and encourage women to participate.
• Sheikhupura Factory

At the very heart of the Punjab's major milk district stands our Sheikhupura
factory, a vast state-of-the-art operation that produces many of our most
popular products, such as MILKPAK UHT milk, low-fat high-calcium
NESVITA products, NESTLÉ PURE LIFE water, CERELAC and yogurt.

The factory commenced operations as part of Milkpak Ltd in 1981. At the

time it produced only UHT milk, but by 1988 had expanded to produce
butter, cream and ghee, as well as fruit drinks.

In 1988, it became part of the joint Milkpak venture, and, soon after, NIDO
milk powder started being produced here.

As the needs of Pakistani consumers grew, we added the capacity to

manufacture new products. In 1998 we started supplying dairy mixes to
McDonald's. A plant to produce the popular Nestlé NESTLÉ PURE LIFE
bottled water was also commissioned.

In recent years, the plant's capacity has been enhanced to produce fruit
yoghurt, tea whitener, cream and raita, as well as low-fat, high-calcium
dairy products, sold under the NESVITA brand.
 • Kabirwala Factory

In 1990, Milkpak acquired the Kabirwala factory, located in Khanewal district of

the Punjab, as a subsidiary. By 1997 it was a fully owned unit of Nestlé Pakistan
Ltd.

Soon after it was acquired, we began upgrading its capacity. In 1992 we added a
MAGGI Noodles plant was added and 1996 saw an additional of a milk powder.

Over the years, the Kabirwala factory was constantly enhanced. EVERYDAY tea
whitening powder was introduced in 2002 and revolutionised tea and coffee
drinking in homes and offices around the country.

In 2005, the factory continued to make notable achievements.

2006 has seen the commencement of Kabirwala Extension Project that would be
completed in April 2007 at a cost of about Rs. 4.0 billion.

The project has seen expansion of milk processing capacity to triple its current size,
both for powder and liquid.

The factory Is also currently producing Nido (started in 1998) and Milkpak UHT
(started in 2006)"
In 2001 we acquired the AVA water factory in Islamabad. It became a fully owned unit in
2003, and we immediately instituted a programme of major improvement to bring the
facility on par with international standards.

Over the years, better and more efficient machinery has been introduced. This has helped
us speed up production, and provide our consumers with their favourite brands of bottled
water in convenient package sizes.

We are proud that the Islamabad factory has made efforts to bring Pakistani women into
the workforce, by providing a comfortable and enabling work environment.

Indeed, we were amongst the first to employ female operators working alongside men in
our production department.

• Islamabad Factory

•
Continuing its past tradition of excellence, Nestlé Pakistan opened the largest milk plant of
Asia and also the largest milk reception among Nestlé World at Kabirwala on March 16,
2007.

The inauguration ceremony was presided over by President of Pakistan, General Pervez
Musharraf and attended by Chairman and CEO of Nestlé Mr. Peter Brabeck-Letmathe.
Among the other distinguished guests at the ceremony Governor Punjab Lt. Gen (Retd.)
Khalid Maqbool, Chief Minister Punjab Ch Parvez Elahi and Federal Minister for Industries
Mr. Jehangir Tareen were prominent.

President of Pakistan lauded the services being rendered by Nestlé for the development of
dairy sector in Pakistan and also appreciated the investment being brought into the market.
An estimated US $ 371 million will be pumped into the economy by 2014, of which more
than US $ 70 million have been spent to see the Kabirwala milk plant to its completion.
President vowed to work extensively with the company to ensure quality standardization and
provide farmers with resources to be able to access the market and take benefit from their
produce.

Speaking at the occasion, Mr. Peter Brabeck-Letmathe, thanked the President specifically,
and Government of Pakistan in general for their investment friendly policies and initiatives.
He termed the event as a ‘historic step’ since Nestlé’s arrival in Pakistani market. This, he
stated, was made possible by policies such as zero rating on dairy industry and other
measures for developing the sector.

Mr. Roland Decorvet, Managing Director, Nestlé Pakistan outlined the achievements by
Nestlé Pakistan and reiterated the commitment to engage with all stakeholders and work
towards the benefit of dairy industry in Pakistan. He also termed the outlook for doing
business in Pakistan as positive and shared his long term vision for the company. He also
emphasized upon the need to regulate the sector in terms of quality to help consumers avoid
harmful, low quality products.

The Plant inauguration was followed by the Graduation ceremony of Lady Livestock
Workers under Nestlé – UNDP Community Development Project which was also attended by
Resident Representative of UNDP in Pakistan. Mr. Peter Brabeck-Letmathe, speaking at the
occasion reaffirmed Nestlé’s commitment to the communities where Nestlé operates. He also
thanked UNDP for trusting Nestlé with the project and expressed hope that the project will
achieve its objectives and cooperation between UNDP and Nestlé will continue beyond this
project.
Nestlé Pakistan's supply chain makes sure that Nestlé products
are available, no matter where you are in Pakistan.

We integrate processes from the farm to markets, and ensure

products are delivered to you at the right time, the right cost and
in the right quantities. In the first quarter of 2006 alone, we
delivered an astonishing 136 million kg of Nestlé products in
Pakistan.

Supply chain was established as a separate department in 2001.

Since then, we've achieved a number of milestones, including a
cold-chain in 2002, centralised demand and supply planning in
2003, and implementation of GLOBE in 2005.

We were selected for a Best in Class repository study, and three

of our best practices were subsequently incorporated into the Best
Practices Library.

Our mission is to:

• Optimise and consolidate resources and processes for a low-

cost but efficient.

• Develop and manage simplified and effective supply network

to achieve a high level of service.

• Create a continuous improvement culture driven by

performance measures and reward.
Nestlé has a long tradition of helping the farmers who provide our raw material.

Nestlé Pakistan is committed to continuing this tradition; we consider it a way of engaging in a

mutually profitable partnership with our suppliers.

Thus, ever since we took over the milk collection system in 1992, our Agricultural Services have
endeavoured to help the farmers of the milk district with their husbandry.

Better animals means there will be better milk. We gain a reliable supply of high quality milk, but
the greatest benefits, both immediate and long-term, are to the farmers themselves.

Our proudest achievement is our internationally acclaimed development of the Punjab's milk
district.

Hundreds of thousands of small farmers live over an area of 100,000 square kilometres in central
Punjab. Of these farmers, most have only a few head of buffalo – yet Pakistan is the world's fifth
largest producer of milk.

Milk is very fragile in our hot climate, and distribution historically depended on a network of
suppliers and middlemen. Without refrigeration, the milk arrived in towns already soured or
adulterated with preservatives, such as vegetable oil or caustic soda.

When Milkpak Ltd. began operations, such was the state of affairs that though the milk was
cleaned, pasteurised, homogenised and sterilised at the Milkpak factory in Sheikhupura, its shelf-
life in summer was, at most, four weeks. By contrast, in Europe UHT milk had a shelf-life of six
months.

Something had to be done. Milkpak immediately took measures to improve milk quality and the
collection system, and when Nestlé entered in 1988, these efforts were stepped up.
Milkpak set up reception centres with cooling facilities where farmers and dodhies, small-
time milk merchants, could bring their wares.

It was a simple solution, but difficult in practice: importing the stainless steel chilled
containers required was prohibitively expensive. By 1988, the company purchased 120 tons
of milk a day from 26,000 farmers.

After acquiring a share in Milkpak Ltd in 1988, Nestlé immediately began investing in milk
cooling tanks. Between 1988 and 1992, 100 milk tanks were installed.

1992 onwards, with full support from the Nestlé headquarters in Switzerland, reorganisation
of the milk collection operation and the provision of agricultural technical assistance became
top priorities.

The investment paid off. Within a decade, Nestlé's purchase of fresh milk had quadrupled,
and the number of small farmers selling milk to Nestlé tripled.
Follow the story of Nestlé's dairy products, from humble beginnings on tiny farms in Sheikhupura
district, all the way to your table!

Step 1

A small farmer in rural Sheikhupura district milks his buffalo twice a day and takes about 4 litres to
one of Nestlé's 500 Village Milk Collection Centres.

Step 2

At the Village Milk Collection Centre the farmer's milk is poured into aluminium churns. The agent
checks the milk's freshness and purity, and enters the quantity into the farmer's logbook. He takes it to
one of Nestlé's 1308 Secondary Reception and Cooling Stations, about 2-4 kilometres away.

Step 3

The Secondary Reception Station has a large electrically powered cooling tank. A milk inspector
measures the fat content, the non-fat solids content, and the milk's acidity. Once satisfied, he takes the
milk to one of 27 Main Reception and Cooling Stations.

Step 4

At the Main Reception and Cooling Stations the milk is poured into huge tanks and is thoroughly
checked for quality. The milk is dispatched to the factories.

Step 5

At the Sheikhupura and Kabirwala factories, the milk is processed and packed into the familiar Nestlé
cartons you can find in your grocery store. It is checked for quality thrice before being released for
sale. Some is processed into yoghurt, powdered milk, or other dairy products.
Even before calling Nestlé in, Milkpak Ltd. had tried to ensure that milk cows were given
fresh fodder during the summer.

Our teams are always prepared to offer practical advice. We have planted a variety of
fodder crops, which we demonstrate to farmers on field days.

We also provide training on best practices in animal husbandry. For instance, we stress the
importance of giving cattle enough water, and train farmers in hygiene and milking.

Livestock Breeding & Health

Pakistan's vast milk production comes largely from buffaloes, despite their small yield. Our
agronomists have shown that with artificial insemination we can actually triple milk
production. Yet artificial insemination is still not widely used.

In 1996, our vets and agronomists independently formed an NGO to promote artificial
insemination using high quality semen.

Today, with help from Nestlé and others, they have established a training programme for
inseminators, and provide high quality imported semen at low cost to farmers.

We concentrate on preventative measures against the most common diseases that afflict
cattle in Pakistan.

Farmers know that they can call on our trained vets whenever necessary.

Better Equipment

Our agricultural services staff have drawn up technical plans for cowsheds, which are
provided free of charge.

Our mechanics have also developed prototypes of machines to cut fodder quickly and
inexpensively.

Starting 2004, we went a step further and proposed a system of small loans for farmers who
wanted to make improvements to their farms, such as building cowsheds.

We drew up the sample specifications for a model farm to be presented to the banks
disbursing the loans. The Service even helps farmers fill out applications for loans.
Asif Ikram is a typical small farmer. He owns two hectares of land
and lives in a mud house in a village of 1800 people. He has
electricity but no running water.

Asif and his family work their land themselves. The only equipment
they own are hand tools, though Asif hires a tractor when needed. He
recently bought himself a bicycle and a television.

Asif owns three buffaloes, of which two are in lactation. With

Nestlé's help he plans to apply for a loan to build a cowshed, but for
now, the animals live in his courtyard.

Asif's buffalos produce ten litres of milk a day. He takes six litres on
his new bicycle to a Village Milk Collection Centre a kilometre
away. Every Tuesday, he receives payment at published rates. 60%
of the family income derives from Nestlé's milk pay.

"I thank God that now, for the first time in my life, I sleep in peace. I
no longer fear for my family's future,” he says.

The above excerpt is an extract from 'Nestlé in Pakistan 1988-2004:

The Development of a Milk District', by Rémy Montavon.
In 2005 we restructured our agricultural services so that they now consist of over thirty full-
time agronomists, vets and agricultural engineers to help the farmers of the Punjab with their
milk production.

Yet there is another crucial stakeholder in every milk-producing farm: the farmer's wife.

We have created seven teams of three women each, all trained vets, sociologists and
specialists in animal husbandry.

Their task is to meet farmers' wives and empower then through training in milk production,
animal husbandry, and hygiene, and to give them an understanding of Nestlé's milk
collection system.

In effect, there's a quiet revolution going on in Pakistan's milk district.

In Nestlé's view, it must be fully integrated in the social, cultural and economic fabric of the
countries in which it operates. Thus no matter which country it operates in, it is committed to
strengthening local communities.

At Nestlé Pakistan we are wholeheartedly committed to meet our obligations to Pakistani

society and be a good corporate citizen of the country.

We follow the code of corporate governance strictly, and try to deal fairly with all
stakeholders, no matter their age, background or geographical location.

We take our responsibility to our consumers very seriously.

• Community Service

Our vision of Corporate Social Responsibility guides all our

operations. We feel that businesses and society are partners: if
one flourishes, so does the other. We are deeply involved in
philanthropic initiatives, from humanitarian relief to sponsoring
schools and donating to hospitals and welfare programmes.

At the same time, we try to make sure that our own business
practices are good for our society. Our Milk Collection System is
a glowing example of our dedication both to our community and
our consumers.

In the years since we began operations in the Punjab's milk-

farming region, local farmers have seen their lives improve, while
consumers get safe, high quality milk products.

We follow a code of good corporate practice so that our

operations create positive social and environmental impacts.

Recognising that the current generation is the guardian of

Pakistan's future, we at Nestlé Pakistan adhere strictly to
environmentally safe industrial practices.

We are active in Social Action Programmes for disadvantaged

Pakistanis, and wholeheartedly support the principles of the
 United Nations Global Compact.

• Our Consumers

The countless Pakistanis who choose Nestlé know that they can rely on us. We
provide the finest quality, while constantly reinventing our self and our products to
suit consumer needs better.

We try to make our products accessible to every consumer. Whether you need just a
drink of water on a cricket field, or a week's pure water for your workplace, NESTLÉ
PURE LIFE is available in a size to suit your needs.

To help you lead a more fulfilling life, our research centres around the world are
constantly developing new ways to make the food you eat and the beverages you
drink healthier and reinforced with vital nutrients.

This concern for your wellness extends beyond our in-house brands – our Wellness
team is always there to help guide you to a healthier lifestyle for you and your loved
ones.

Your views and needs are central to Nestlé Pakistan's operations. That's why we have
a dedicated Consumer Services team ready to answer questions, advise you about your
family's nutritional requirements, or simply help you whip up a quick, delicious meal.
Good Food, Good Life: the key to health, nutrition and wellness.

With over 140 years of experience and expertise, we take great pride
in bringing you the best products because happy, healthy consumers
are important to us.

We develop our products keeping your preferences, tastes and needs

in mind. We understand that you, along with millions of other
consumers, know that you can trust our products to deliver purity,
quality, convenience and nutrition.

Our products are carefully aligned to Pakistani tastes and needs.

We're always trying hard to develop new products and improve
existing ones, and serve our consumers better.

That's why through constant renovation and innovation we're always

testing or launching value added products and making them available
in sizes that will suit every requirement.

So explore the world of health with Nestlé products, and find out
what suits your family's needs!
Orange Juice, Pineapple Nectar, Apple Nectar, Red Grapes
Nectar, Chaunsa Nectar, Guava Nectar, Mango & Mango-Orange.
Available in 1000ml brick & 200ml wedge packs

available in 1000ml, 500ml & 250ml

Strawberry, Mango & Peach available in
ready-to-serve 100g cups
Pakistan’s Favourite Water
Whether it's in a restaurant, a café, a university or an office, we
have a range of solutions to fit your needs, from economical bulk
packaging to ready-to-serve individual servings.

Our FoodServices team is there to help businesses and food and

beverage professionals. We provide high quality solutions that are
convenient, economical and easy to use.

We add value by offering the ideal solution for your business. Our
diverse products are known for their consistent quality and are
designed to optimise on utility and usage.

When you partner with us, you work with a company with 10 years
of expertise, trust and the credibility of being the number 1 food
and beverage solutions provider in the world.

Nestlé FoodServices operates in more than 60 countries worldwide,

on all 7 continents.
Quality is the foundation of our Food, Nutrition, Health and
Wellness Company

At Nestlé Pakistan, we consider ourselves the standard bearers of

our founder Henri Nestlé's care for safety and quality. Thus,
Nestlé Pakistan has an absolutely non-negotiable commitment to
product quality and food safety.

We take our motto of Good Food, Good Life very seriously. At

every step, from collecting raw materials from rural farmers to
distributing finished goods in city supermarkets, our employees
are trained and retrained to understand their role in ensuring that
consumers enjoy food and beverage items of the highest quality.
The Nestlé name on a product is a promise to consumers that:

It is safe to consume

It complies with all relevant laws and regulations and meets high
standards of quality. In addition, we constantly try to improve
and tighten existing regulations. We wish to ensure the highest
possible benefits and protection for our consumers. For this
reason, we actively participate in the revision of food standards
with the government.

Quality is to win consumer trust and preference

We are committed to offering products and services to our

customers that meet their needs and/or preference and provide
sound nutrition.

Quality is everybody’s commitment

Our management takes the lead, sets the objectives and

demonstrates its commitment towards quality. All Nestlé
functions across our Value Chain are fully responsible to follow
mandatory norms and instructions for maintaining agreed quality
standards. We follow the stringent international standards of the
World Health Organisation's Codex Alimentarius on food
production. All factory laboratories operate according to Good
Laboratory Practices guidelines. Our Sheikhupura and
Kabirwala laboratories have long enjoyed an 'Excellent' rating in
the worldwide proficiency tests conducted by Nestlé SA
(Switzerland), and attest to the world-class quality of our
factories.

Quality is to strive for zero defect and no waste

We focus on facts and results and we strive for zero defect and
excellence in everything we do. We adopt a “no waste attitude”
and constantly look for competitiveness and opportunities for
Continuous Improvement of the quality standards delivered to
our consumers.

Quality is to guarantee food safety and full compliance

A solid quality management system must rely on a strong and

fully empowered quality function. We enforce full compliance
with the mandatory standards and principles of our Quality
Management System, which include Food Safety, Regulatory
and Quality requirements in every step of our Value Chain. The
Nestlé Quality Management System builds on the existing Nestlé
Quality System and adds a strong management component to it.
The new dimension is the management of quality in all the
relevant business processes from Consumer Requirement to
Consumer Satisfaction.
We believe that every single company, no matter where in the world it
operates, ought to be fully integrated into the local social, cultural &
economic life. We must be good corporate citizens, and give back to the
societies to which we belong.

There are two ways of fulfilling our responsibility and practising

corporate Social Responsibility:
• Through social investments: giving to charities, leading and
supporting cultural or welfare initiatives.
• Through the realisation that businesses create social and
environmental impacts, both positive & negative, through the daily
operations of their value chain.
Our operations throughout the world are committed to making full use
of these tools. Thus Nestlé people everywhere are involved in the many
programmes and projects we have designed to strengthen local
communities and nations.

We are heavily involved in projects relating to our own areas of

expertise, such as nutrition education & research, health projects, and
agricultural assistance. In times of crisis we are often amongst the first
on the scene to help with humanitarian relief aid and food donations.

To help culture & society flourish, we do our best to encourage a host

of other activities: we support charities, education and training
initiatives, art and cultural events, sport events and HIV/AIDS
prevention.
In our 140 years of experience, we have learnt that businesses and
the societies in which they operate are in a symbiotic relationship. If
society flourishes, business is good. If a business does well, it brings
wealth and stability to a society.

From this organic interdependence comes our conception of

corporate Social Responsibility (CSR).

We try to Create Shared Value at every step of our value chain, to

ensure that our actions benefit not only the company, but also
society at large. Both are, after all, interdependent. This
consideration affects all our corporate initiatives.
•
In line with Nestlé's global commitment, Nestlé Pakistan is dedicated
to playing its role in helping to protect the environment.

We comply with the Environmental Act (1997), and try to ensure that
at every stage of our operations, the environmental impact is minimal.

Learn more about our Responsibility to the Environment projects:

Our Environmental Commitment in Action

Our environmental commitment extends to every part of our value

chain.

Thus, at the raw materials stage, we support sustainable agricultural

and dairy farming practices, including environmental protection.

When it comes to production, all our factories try to maximise eco-

efficiency, i.e. increase production while minimising resource
consumption, waste and emissions.

Our factories are equipped with complete testing and monitoring

facilities for waste and air emissions.

To eliminate air pollution, we have stopped using heavy fuel oil in our
factories, which are now run on clean natural gas. This has reduced our
emissions into the atmosphere to well below the legal limits.

Our Sheikhupura & Kabirwala factories have elaborate water treatment

systems to prevent wastewater from polluting the environment.

In 2005, we upgraded our wastewater treatment plants in both

factories. That's not all; we are continually reducing our consumption
of raw water per ton of production.

Irresponsible packaging can have a heavy impact on the environment.

To reduce the amount of material used without jeopardising the safety
and quality of our products, we are always working on new packaging
solutions that have minimal weight and volume and can be easily
recycled.

We even operate a collection system for used packaging. Solid waste is

collected at source and then reused, recycled or disposed in an
environmentally friendly way.

Natural gas incinerators at our Sheikhupura & Kabirwala factories are

used to safely dispose of material that cannot be recycled & dumped.

Our factories have environment committees to manage routine

environment issues and review performance. Environmental impact
assessment is done in advance for every new project and measures are
adopted to minimise adverse impacts on the environment.

Our employees regularly undergo training to inculcate awareness about

environment-friendly practices.
Nestlé Pakistan is involved in a wide range of programmes and projects intended to improve
the lives of underprivileged Pakistanis.

Efforts are focussed on:

• Well and Hand-Pump Installation Projects

Potable water is a basic human necessity, yet it is denied to

millions of Pakistanis. We have helped alleviate rural suffering
by undertaking tube-well and hand pump installation schemes in
selected areas.

Our first tube-well was completed in 2002 in a village of 3000

inhabitants in Tehsil Dunyapur, Khanewal. A second one was
commissioned in 2005 near Chishtian.

Since then 300 hand pumps have been installed in the arid
deserts of Thar and Cholistan.

Moreover, the residents of villages which host our milk

reception centres know that they can always make use of our
water pumps.

• Help Centre for Farmers

Our Milk Collection and Agricultural Services Department

provides free advisory and support service to dairy farmers.

We give training in animal husbandry practices, vaccinate and

treat their milch animals, help farmers buy feed supplements and
fodder seeds, and assist in breed improvement.

This translates into increased milk production, better income,

and a better life for farmers.
Taking the Nestlé concept of corporate Social Responsibility to
heart, we are deeply involved in social investment and
humanitarian aid.

We are committed to Pakistan's long-term betterment, and strictly

follow the code of corporate governance.
We deal fairly with stakeholders.
We serve our consumers through safe, high quality products &
communicate with them responsibly. We try to benefit our
consumers by spreading awareness about healthy nutrition and
lifestyles as well as constantly developing or improving existing
products for health, nutrition and wellness.

During our manufacturing process we are careful to minimise

environmental impact and value employee welfare highly.

We are actively involved in several social action programmes

(SAPs) to improve the lives of our country's under-privileged
people.

We offer generous financial support to hospitals and

organisations that are dedicated to providing services to the poor.
Only recently, we donated a mobile dispensary to APWA for its
medical outreach programme in a remote community near Hub,
Sindh.

We adhere to the global Nestlé philosophy of Creating Shared

Value. Our dairy suppliers in the Punjab's milk district can attest
to the agricultural and technical support we offer them.

We have always responded generously with assistance to victims

of natural disasters, such as floods, earthquakes and droughts.

When the October 2005 earthquake hit Azad Kashmir and the
NWFP, we lost no time in reaching out to the affected with
donations of food products worth millions of rupees.
Consumer Relationship Marketing lies at the heart of Nestlé Consumer Services. We strive to
build a long-term, sustainable relationship of trust and loyalty.

Our customer staff stands ready to help consumers with any queries or complaints regarding
our products, and draws upon Nestlé Pakistan's vast in-house resources to answer questions.

Recently, we launched an advanced consumer contact management system called CONSO+.

This is a specialised programme specifically designed to help us deal with contact
management and analysis and form closer ties with our consumers.

We can better develop our products based on consumer tastes and preferences, while
consumers themselves benefit from our customised services and commitment to delivering
wellness

Food and beverages play an increasingly important role in people's lives. What people eat
and drink – and how – affects how they live their lives. Moreover, each person's nutritional
and social requirements are different.

Thus, our consumers benefit greatly from Nestlé's commitment to providing products that go
beyond taste and convenience, and integrate health, nutrition and wellness, at every stage in
life.

We have created two key units to further this project: the Corporate Wellness Unit and
Nestlé Nutrition.

The Corporate Wellness Unit drives the health, nutrition and wellness dimension by
providing wellness-related tools and solutions. We have devised the world's first global
nutritional labelling system: the Nutritional Compass. (Play animation below to see an
example of the Nutritional Compass in practice.)

Already printed on food and beverage packs accounting for half our global sales, it gives our
consumers relevant information on nutritional content, as well as nutritional tips and contact
information for our consumer services.

Nestlé Nutrition focuses on three main areas: Infant Nutrition, HealthCare Nutrition and
Performance Nutrition. It aims to launch innovative scientifically based products, such as
Clinutren repair, a nutritional supplement that aids wound healing.

We hope to cater to the specific needs of every consumer, to enable them to lead healthy,
productive and enjoyable lives.
At Nestlé, our principal commitment is to our consumers

Nestlé Consumer Services is the main interface between you and the
company, and we make every effort to ensure that your voice is
heard. After all, it's your satisfaction that really counts.

When Henri Nestlé prepared his first boxes of infant formula for
sale, he put his address on the packages. Today, the Nutritional
Compass on our packaging encourages consumers to Talk to Nestlé,
expressing the same belief in openness and accessibility.

We want to build a long-term relationship of trust and loyalty with

you. This helps ensure that you, our consumers, are happy, satisfied
and able to live fulfilling lives.

Accordingly, Nestlé representatives are poised to provide prompt

service and relevant information whenever needed.

We try to talk to you, but more, we listen to you. Only by hearing

what you say can we understand what you want and need. Only by
understanding your needs can we serve you to the fullest and help
you achieve your aspirations.

Consumer Services doesn't just provide us with feedback on our

company, brands and products. It helps us gain important consumer
insights: what are the relevant values you hold dear? What do you
look for in our products?

Our philosophy and strategy

• Win consumers' trust.
• Understand consumers' nutritional and emotional preferences.
• Serving our consumers and improving their quality of life.
•
Our strategy starts and ends with the consumer.
We work in four key areas

Direct Contact: Only by coming to you and asking you can we

understand and fulfill your needs.

Sharing Recipes: Your favourite food & beverage items, prepared

the way you like them.

Consumer Care: By harnessing state of the art technology, we try

to build a long-term relationship with you.

It's All About You: We are there to listen to you views and
develop products according to your changing needs.
Since our founding, health, nutrition and wellness have been central to the Nestlé vision.

140 years after Henri Nestlé, nutrition is, more than ever, the key to our company's future.
Even as we enter the new millennium and adapt to the changing needs of our consumers, we
remain loyal to Henri Nestlé's ideals.

Our business is not just what we make, but the role these products play in making our
customers' lives better. Indeed, consumers are at the heart of all that Nestlé does.

This philosophy is summed up in four words: Good Food, Good Life.

In our quest to become the world's leading health, nutrition and wellness company, we do
everything we can to help people live more fulfilling lives.
• Good Food, Good Life

Henri Nestlé chose his own coat of arms to represent the

company's philosophy: a bird's nest, with a mother feeding her
young.

The image represents our core values: care, family values,

nutrition, healthy growth, safety and comfort. It is a guarantee
of quality and a commitment to our responsibilities as a food
company and experts in nutrition.

Over the years we have reaffirmed our commitment to

wellness, helping our consumers to live longer, healthier, and
more productive lives, no matter their age, gender or
socioeconomic status.

• Good Ingredients

Three vital ingredients lie at the heart of Nestlé and come

together in our brands: our people, our research and
development, and our commitment to quality.

The 250,000 dedicated people who make up the Nestlé family

are our source of strength and energy. Realising this, we offer
them constant professional development, and feel our cultural
diversity is one of our greatest assets.

Today, we are one of the largest investors in food technology.

R&D is the cornerstone of the Nestlé guarantee of quality.

We consider quality in three key dimensions: health, sensory

pleasure, and social applicability. Thus we try to provide
nutritious, tasty meals that offer value and are culturally
relevant.
• Good Practices

As the world changes, we at Nestlé evolve and adapt to new

circumstances and environments. Nevertheless our business
practices are founded on certain tenets that reflect the basic
ideas of fairness, honesty, and concern for people.

We are 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 favour short-term profit at the expense of

successful long-term business development.

• Nestlé recognises that its consumers have a sincere and

legitimate interest in the behaviour, 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 organisation.

• Nestlé is conscious of the fact that the success of a

corporation is a reflection of the professionalism, conduct and
the responsible attitude of its management and employees.
Therefore, recruitment of the right people and ongoing training
and development are crucial.
In October 2005, the biggest natural calamity in our history struck Pakistan. Thousands died
and millions were left homeless after a massive earthquake hit our mountainous northern
areas.

In step with the rest of the nation, Nestlé Pakistan responded immediately, putting its
infrastructure and resources to work in the affected areas.
• First Responses

When the earthquake struck, Nestlé Pakistan responded

instantly, even before the magnitude of the disaster had dawned
upon the nation. We immediately donated food and beverage
items.

Within two days, we had established a crisis committee under

the supervision of our Managing Director. The same day, the
management team left to visit the affected areas, and by 11
October, the first six Nestlé trucks left our factories, bearing
bottled water, powdered and UHT milk and ready-to-cook
MAGGI noodles.

Instead of burdening the government and relief agencies, we

aggressively reactivated our own shattered distribution channels
to bring supplies to the people who needed them most and
established six camps to distribute relief goods.

Despite blocked roads, grave logistical challenges & an

atmosphere of fear and suffering, our teams, consisting of about
forty Nestlé employees and distributors, went out and distributed
Nestlé products to the affectees.

Within two days our teams reached the worst-hit areas around
Muzaffarabad, Bagh and Mansehra. They worked in
collaboration with the Pakistan Air Force and arranged for
supplies to be airdropped to the most inaccessible areas.

Other teams of Nestlé volunteers supported relief work

 undertaken by other agencies around the affected areas.

As a result of our swift and carefully planned action, we were

able to distribute 80 trucks of goods, worth Rs 20 million. Two
10-ton trucks of drinking water were dispatched to Muzaffarabad
Hospital, and our volunteer teams ensured that goods were
distributed fairly and efficiently to those who needed them most.

• Aftermaths

After the crisis comes a time for rebuilding shattered lives.

Among our reconstruction efforts are the following initiatives:

• We have allocated an amount of Rs 20 million, raised

through employee contributions, matching grants and
contributions from other Nestlé markets. This amount will be
used to adopt and reconstruct a model village in Azad
Kashmir.
• We are thankful that no Nestlé employee was personally
affected, though a few lost family members and property. We
have compensated all employees, distributors and their staff
for homes destroyed, to the tune of Rs 4.1 million.
• We intend to build an orphanage in the affected areas for the
hundreds of children who lost their parents in this disaster.
• We are initiating a livestock health improvement programme
to help the locals rebuild their shattered lives.
• Our parent company, Nestlé SA has donated an additional Rs
16 million for reconstruction and rehabilitation work.

• Pitching In

Nestlé employees worked tirelessly to bring aid to earthquake

victims. We are immeasurably proud of our people for their
contributions:

• Nestlé employees donated Rs 3.3 million from their own

salaries.
• Nestlé employees in other countries also stepped forward and
donated to the Nestlé relief fund.
• Five teams of staff volunteers worked day and night in the
affected areas to ensure that relief goods got where they were
needed.
• A medical detailing team worked with the students of King
Edward Medical University, Lahore, to collect medicines
worth Rs 175,000.
• Our parent company, Nestlé SA has donated an additional Rs
16 million for reconstruction and rehabilitation work.
Direct contact with consumers is at the heart of our vision. For
many people around the country, our field staff is the face of
Nestlé.

These dedicated field staff invite consumers, mostly homemakers,

to Nestlé activities.

We invite our guests to learn more about Nestlé and its philosophy
and brief them about our brands. We try to give them vital
information about health and wellness, to help their families live a
better lifestyle.

At these sessions homemakers have the opportunity to learn about a

company that produces many of their favourite foods and
beverages, globally and locally.

They also have the confidence of knowing that any concerns

regarding their family's nutrition, health and wellness will be
capably answered. They know that they can rely on Nestlé.
At Nestlé, our chief commitment is to our consumers, and we make
every effort to make sure that their voices are heard.

When Henri Nestlé prepared his first boxes of infant formula for
sale, he put his address on the packages. Today, our Consumer
Relationship Panel exhorts people to "Talk to Nestlé", expressing the
same belief in openness and accessibility.

Our consumer services department is staffed by experts in every area

related to our products and wellness, and is poised to provide prompt
and relevant service to our consumers.

We believe that consumer services requires us to talk to consumers

and also, above all, to listen to them.

Only by listening to what people say can we understand what they

want and need. Only by understanding their needs can we serve our
consumers to the fullest.
References:

 www.nestle.pk
 www.google.com.pk
 Local market
 Nestle Factory Kabirwala