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Management Report 2015

For over two decades, we at Nestl Pakistan, have strived to bring high quality
products that have won the hearts of all Pakistanis. Our bedrock values of
respect, trust, integrity and teamwork have helped us become the premier
Nutrition, Health and Wellness Company.

We express our enduring belief of driving positive change and ensuring a better
quality of life for the communities that we operate in. Guided by our renewed
agenda for growth, we aim to seize greater opportunities that lie ahead, based
on our idea of extending healthier food and beverage choices to all.
Management Report 2015

Table of Contents Business Review Company Review

02 Vision, Mission and Ambition 24 About Nestl

05 Directors Report to the 26 Board of Directors
Shareholders 27 Company Directory
09 Annexure to Directors Report 28 Management Committee
on Corporate Governance 31 Human Resource
10 Company Performance 2015 33 Milk Collection and Dairy
12 Statement of Wealth Creation Development
and its Distribution 35 Supply Chain
13 Key Financial Data (Six Years at a 37 Technical
Glance) 41 Quality Control
14 Pattern of Shareholding 43 Nestl Continuous Excellence
17 Statement of Compliance 45 Finance & Control and Globe
with the Code of Corporate 47 Sales
Governance 49 Consumer Communication
19 Review Report to the Members 51 Nutrition, Health and Wellness
20 Notice of Annual General 52 Ambient Dairy
Meeting 55 Chilled Dairy
56 Nestl Juices, Nectars and Drinks
57 Beverages
58 Nestl Waters
59 Nestl Coffee
60 Breakfast Cereals
61 Culinary
62 Infant Nutrition
64 Nestl Professional

Accompanying reports Nestl in society Financial Statements 2015

Creating Shared Value and
meeting our commitments

CSV Report 2015

Nestl in society


Nestl Pakistan Limited 1

Our Vision Our Mission Our Ambition
Nestls vision is to be the globally To positively enhance the quality To be the leading Nutrition, Health
recognised leading Nutrition, Health of life of people of Pakistan by all and Wellness Company in Pakistan.
and Wellness (NHW) Company. that we do through our people, our
Nestl Pakistan subscribes fully to brands, products and our Creating
this vision and the values that come Shared Value (CSV) initiatives.
with it.

In particular, we envision:

Leading a dynamic, passionate

and professional workforce,
proud of our heritage and
positive about the future

Meeting the nutritional needs

of consumers of all ages
from infancy to old age, from
nutrition to pleasure, through an
innovative portfolio of branded
food and beverage products of
the highest quality

Delivering shareholder value

through profitable long-term
growth, while continuing to play
a significant and responsible
role in the social, economic,
and environmental sectors of

2 Management Report 2015

Nestl Pakistan Limited 3
4 Management Report 2015
Directors Report
to the Shareholders

The Directors of the Company are pleased to present the Annual Report along with the
audited financial statements for the year ended December 31, 2015.

Financial Summary
Performance: Financial Performance:
The year 2015 while showing signs of 2015 2014 Change
improvement was another tough year
with uncertain political environment, Sales (PKR Million) 102,986 96,458 +6.8%
continued security challenges and Gross Profit margin 33.1% 28.3% +4.8%
ongoing energy crises resulting in Operating Profit margin 15.8% 14.6% +1.2%
regular disruptions of business.
Net Profit after tax 8.5% 8.2% +0.3%
Despite all these challenges, the Net Profit after tax (PKR Million) 8,761 7,929 +10.5%
Company crossed the PKR 100 billion Earnings per share (PKR) 193.18 174.85 +10.5%
turnover milestone with a top line
growth of 6.8%. The Company also Dividends: with respect to operational reliability
improved its Gross Margins by 481 bps and capacity increase in order to meet
Keeping in view the good financial consumer demands.
on the back of favourable input costs,
performance of the Company, the
effective product mix management,
Board of Directors has recommended
optimisation of our value chain through
to pay Final Cash Dividend of Rs. 90 Corporate
Nestl Continuous Excellence (NCE)
initiatives and a relatively stable Pak
per share, in addition to the Interim Governance:
Cash Dividend of Rs.100 per share
Rupee, enabling us to reinforce our Nestl Pakistan is committed to
already paid, which brings the total
commitment for investing behind our maintain high standards of good
dividend for the year to Rs.190 per
brands. corporate governance without any
share for 2015 compared to Rs.170 per
share in 2014. exception. The Directors are pleased
Nestl Pakistan continues to be
to state that the Company is compliant
committed to enhancing its product
with the provisions of the Code of
base through innovation and Investment Projects: Corporate Governance as required by
renovation, which remains an integral
With a market driven approach and Securities and Exchange Commission
part of the Companys vision to
commitment to satisfy the needs of Pakistan (SECP) and formed as part
positively enhance the quality of life
of our consumers, in 2015 Nestl of stock exchange listing regulations.
of our consumers. The major new
Pakistan has made investments of Statement of compliance with Code of
product launches during 2015 included:
PKR 2.7 billion including expansion and Corporate Governance is as under.
development projects, with the most
significant projects listed below:
DOCELLO Chocolate Mousse. Project Description PKR Million Compliance with
Sheikhupura - Extension and Code of Corporate
Operational reliability 536
Key Financial Governance
Kabirwala - Extension and
Indicators: Operational reliability 320
The Directors confirm that:
Sales grew by PKR 6.5 billion, a
Water Factories - Extension and a) The Financial Statements
growth of 6.8%.
Operational reliability 292 prepared by the Management
Gross Profit (GP) margin improved of the Company present fairly
Milk collection infrastructure
by 481 bps resultant of favourable its state of affairs, the results of
development 274
commodity and fuel prices and its operations, cash flows and
effective control on total delivered Extension of Distribution and Sales changes in equity.
cost through the NCE mindset. facilities 491
b) Proper books of accounts of the
Net Profit margin increased by 30 Others 788 Company have been maintained.
bps through continuous focus on
Investments, of approximately PKR 5.4 c) Appropriate accounting policies
operational costs.
billion, are planned in 2016, primarily have been consistently applied in

Nestl Pakistan Limited 5

preparation of financial statements Holding Company: develop coaching culture at Nestl
and accounting estimates are Pakistan.
based on reasonable and prudent Nestl S.A., a Company incorporated
in Switzerland (the holding company), Career coaching clinics were
holds 26,778,229 ordinary shares conducted to help our talent
d) International Financial Reporting develop their career maps, which
representing 59% equity interest in the
Standards, as applicable in remained a great success.
Pakistan, have been followed in
preparation of financial statements Performance Appraisal and
and any departure therefrom has Human Resource Development process was
been adequately disclosed and implemented for non-management
Management and staff. Learnings from this year will

e) The system of internal control

Employee Relations: be gathered and utilised to further
strengthen the performance
is sound in design and has been In 2015, we continued to sustain
management system for 2016.
effectively implemented and and improve our people processes
monitored. to have competitive edge on the Apprenticeship Programme
f) There are no significant doubts competition. Strong focus remained continued across the factories
upon the Companys ability to on leadership development, capability with increased number of trades
continue as a going concern. building, learning opportunities and learning opportunities. This
through E-learning and employee enabled us to equip upcoming blue
g) There has been no material
relations management for building collar labour force with skills and
departure from the best practices
high performance teams to achieve capabilities, ultimately ensuring
of corporate governance, as
organisational goals. Whereas diversity their readiness for employment.
detailed in the listing regulations.
and commitment to compliance Women Empowerment Seminars
h) The value of investments of remained at the heart of our agenda. were conducted with increased
employees funds are as follows Some of the key achievements this
(PKR millions): coverage and frequency to
year were: improve Gender Diversity at
Audited Audited
Nestl Pakistan.
2015 2014 To strengthen the leadership
pipeline, two major learning Employee Relations and
Provident Fund 2,851 2,528
initiatives, People Manager Community Engagement remained
Gratuity Fund 1,344 1,187
Toolkit and Nestl Leadership key focus areas at our factories to
Pension Fund 2,023 1,740
Development Experience, were strengthen our relationship with
designed and launched. First line the employees and surrounding
i) Statements regarding the
management capability building communities. We also arranged
following are annexed or disclosed
in the notes to the accounts: to deploy the techniques and training for our line managers
concepts in various situations for for effective and efficient
(i) Key financial data for the last management of day to day people
six years the target audience to maximise
positive impact on business matters and situations related to
(ii) Pattern of shareholdings through teams was given special the workplace.
(iii) Trading in shares of the focus.
Company by its Directors,
Freds Learning Channel, a Creating Shared Value
CEO, CFO and Company
knowledge sharing platform, (CSV) and Community
was launched to nurture and
(iv) Number of Board meetings develop a culture of learning at
held during the year and Nestl Pakistan. It remained very Nestl Pakistan as part of its global
attended by each director effective in enabling and engaging and local commitments, believes in
our people through quizzes, case Creating Shared Value (CSV) for the
External Auditors: studies, quotes and leadership shareholders and the communities in
videos. which it works and lives. Given the
Messrs KPMG Taseer Hadi & Company, nature of our activities and our ambition
Chartered Accountants have completed Fifteen Nestl managers were
to be the worlds leading Nutrition,
their assignment for the year 2015 certified as master coaches
Health and Wellness Company, Nestl
and retire at the conclusion of the 38th through International Coaching
has identified the following focus areas
Annual General Meeting. Being eligible, Federation. In 2016, these master
where it can optimise the creation of
they have offered themselves for re- coaches will conduct coaching
shared value:
appointment. clinics across the Company to

6 Management Report 2015

Nutrition Implementation of Alliance for support in ensuring the progress of
Water Water Stewardship standard, in the Company. The Company is also
Environmental Sustainability collaboration with WWF, at our immensely proud of and thankful to
Rural Development Sheikhupura Factory its employees for their committed
Our People and passionate efforts, loyalty and
Continued support, training and
dedication. We greatly value the
advisory services as support to
In line with this global vision and for support and cooperation received
dairy sector under our Farmer
Enhancing the Quality of Life of from our esteemed suppliers, trading
Support Programme
People of Pakistan Nestl Pakistan partners, bankers and all stakeholders
continues to positively engage Continued support for the who are helping and contributing
with farmers as well as rural and Dairy and Rural Development towards the continued growth of our
underprivileged communities in its Foundation training programme Company and contributing to positively
areas of operations. involving dairy farmers and rural enhancing the quality of life of the
women for skill enhancement people of Pakistan.
Our inspiration is governed by the related to dairy and livestock
Nestl Corporate Business Principals sector Nestl Pakistan, whilst bringing
and also as a signatory to the UN Launch of Entrepreneurship international expertise and standards
Global Compact for Ethical Business, Development Programme into its products, processes and
the Company is committed to the at Institute of Business manufacturing sites, remains a Har
stakeholders and the communities Administration, Karachi, with a Dam Pakistani company very proud of
for mutual growth and sustainability. focus on agriculture. its achievements in Pakistan.
From offering quality products to the
Continuation of Chaunsa Project
consumers, to providing a fair and
for implementation of Best Farm
diverse work environment for our
Practices in the Chaunsa Mango
employees; from capacity building and For, and on behalf, of the
knowledge transfer to our partners and Board of Directors
raw material providers to implementing Support for Driver Training Facility
responsible sourcing models into our at the National Highways and
relationships; from supporting under Motorway Police Training Institute,
privileged communities to working Karachi
with small farmers; from enhancing
sustainability and environmental Future Outlook: BRUNO BORIS OLIERHOEK
friendliness of our operations to Chief Executive
embedding ethical and transparent Despite the challenges being faced Lahore: February 16, 2016
business practices, CSV is entrenched in the country, we are confident of
into the entire value chain. The key CSV the strong potential of Pakistan and
initiatives completed during 2015 are: we believe it will continue to offer
huge investment potential driven
Nutrition awareness was extended by its growing population. Nestl is
to 35,000 school children in committed to positively enhance the
the rural, suburban and urban quality of life of Pakistani people by
areas under Nestl Healthy Kids bringing nutrition, health and wellness
Programme products and will continue to drive
sustainable profitable growth on the
Continued product support back of our strong brands, Innovation
through Nutrition Support and Renovation capabilities and
Programme for the underprivileged operational excellence with NCE
institutions mindset.
Nutrition support to the areas
affected by natural calamities Acknowledgements:
Refurbishment of Clean Drinking We take this opportunity to thank our
Water facilities providing clean valued customers and consumers
drinking water to approximately who have trust in our products and
61,000 people on daily basis continued to provide sustained

Nestl Pakistan Limited 7

8 Management Report 2015
Annexure to Directors Report
on Corporate Governance

Board of Directors Meetings Audit Committee

During the year under review, the Board of Directors had the following The Audit Committee comprises
meetings: three members including the
Chairman of the Committee,
Number of Board Meetings held for the financial year = 4 who is an Independent Director.
Two members are Non-Executive
Date of Meeting Time Place Directors. The terms of reference of
February 19, 2015 10:30 am Corporate Office, Lahore the Committee, which is in line with
April 23, 2015 09:30 am Corporate Office, Lahore the Code of Corporate Governance,
August 26, 2015 11:00 am Corporate Office, Lahore has been presented and approved by
October 16, 2015 11:00 am Corporate Office, Lahore the Board of Directors.

The Audit Committee held four

Detail of attendance of Directors at Board meetings is summarized below:
meetings in 2015. The Chief Financial
Date of No. of Officer, Internal Auditors as well as
Name of Directors Meetings
Appointment External Auditors were invited to the
Syed Yawar Ali 01.07.2013 4
Bruno Boris Olierhoek 01.09.2015 1
Human Resource
Magdi Batato 01.07.2013 3
(Resigned w.e.f 01.09.2015) and Remuneration
Pierre Schaufelberger 01.07.2013 4 Committee
John Michael Davis 01.07.2013 4
The Company has established
Syed Babar Ali 01.07.2013 4
this Committee in accordance
Syed Hyder Ali 01.07.2013 4
with requirements of the Code of
Naveed A. Khan 01.07.2013 3
Corporate Governance. All issues
Faal Krichane 01.07.2013 1
(Resigned w.e.f 01.09.2015) of remuneration are fully disclosed,
John Martin Miller 01.09.2015 1 deliberated and decided at the
Osman Khalid Waheed 01.07.2013 3 meetings of the Directors.

Role and The Managing Director is the Chief Strategic Planning

Executive Officer of the Company
Responsibilities of and is responsible for the day-to-
The Companys strategic direction
the Chairman and the day operations and conduct of
was reviewed at the meeting of
the Directors. A process has been
Chief Executive its business in accordance with
put in place whereby long term
The role of the Chairman and the the powers vested in him by law,
Market Business Strategies and
Chief Executive are segregated and the Articles of Association of the
Annual Operational Plans established
they have distinct responsibilities. Company and authority delegated to
by Management are regularly
The Chairman of the Board has him through the Board of Directors
reviewed by the Directors in line
responsibilities and powers vested resolutions from time to time. The
with the Companys overall business
in him by law and the Articles of Managing Director recommends
objectives. Part of the process
Association of the Company, as policy and strategic direction and
involves the setting of measurable
well as duties assigned to him annual business plans for the
Key Performance Indicators (KPls).
by the Board. In particular, the Board of Directors approval and is
Chairman coordinates the activities responsible for exercising the overall
of the Board and presides over the control, discretion, administration and
meetings of the Board of Directors supervision for sound and efficient
and shareholders. management and conduct of the
business of the Company.

Nestl Pakistan Limited 9

Company Performance 2015

Rs. in million

2015 102,986

2014 94,458

2013 86,227

2012 79,088

2011 64,824

2010 51,487

0 20,000 40,000 60,000 80,000 100,000 120,000



2015 193.19

2014 174.85

2013 129.37

2012 129.32

2011 102.94

2010 90.69

0 50 100 150 200

Rs. in million

2015 353,727

2014 412,681

2013 342,389

2012 214,653

2011 163,127

2010 107,699

0 100,000 200,000 300,000 400,000 500,000


Rs. in million
2015 12,638
2014 12,628
2013 11,859
2012 11,560
2011 7,612
2010 5,582

0 3,000 6,000 9,000 12,000 15,000

Shareholders Funds Return on Equity


Rs. in million

2015 279 7,800

278 9,100

2013 262

2012 255
2011 168
2010 123
0 2,000 4,000 6,000 8,000 10,000
Net Assets per Share Market Price

10 Management Report 2015

Rs. in million
2015 8,616

2014 7,029
2013 5,668
700% 1,250%
2012 3,174
2011 2,948
2010 3,401

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Dividend Dividend Payout Ratio


Rs. in million
2,701 3,427
2015 29,996
2,976 3,237
2014 30,550
3,002 3,701
2013 31,468
2,132 14,070
2012 21,882
1,613 8,941
2011 16,089
1,270 4,295
2010 11,140

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Net fixed Assets Capital Expenditure Depreciation


Rs. in million
2015 16,317
2014 14,113
2013 11,471
2012 10,966
2011 8,458

2010 6,858 13.3%

0 4,000 8,000 12,000 16,000 20,000

Operating Profit % of Sales


Rs. in million
2015 8,761
2014 7,929
2013 5,867
2012 5,865
2011 4,668
2010 4,113

0 2,000 4,000 6,000 8,000 10,000

Profit after tax % of Sales


Rs. in million
2015 12,520
2014 11,009
2013 8,113
2012 7,978
2011 6,503
2010 5,696

0 3,000 6,000 9,000 12,000 15,000

Profit before tax % of Sales

Nestl Pakistan Limited 11

Statement of Wealth Creation and its

(Rupees in 000) 2015 2014

Wealth Generated/ Value Added:

Turnover (including Sales tax) 113,514,384 104,971,775
Less: Purchased materials and services (78,014,794) (73,918,894)
Value Added 35,499,590 31,052,881
Other Income 137,742 523,892
Wealth Created 35,637,332 100% 31,576,773 100%

Wealth Distribution:
To Employees:
Salaries, benefits and other costs 8,335,189 23.4% 7,368,748 23.3%

To Government:
Income tax, sales tax, excise & custom duty, WWF, WPPF 13,263,318 37.2% 10,736,327 34.0%

To Society and Development Initiatives:
Donations and CSV Projects 52,241 0.1% 59,400 0.2%
*Dairy Development (Non-business returns) 224,731 0.6% 205,386 0.7%

To Providers of Capital:
Dividend to Shareholders 8,616,421 24.2% 7,029,186 22.3%
Mark-up/ interest expenses on borrowed funds 1,724,420 4.8% 2,155,637 6.8%

To Company:
Depreciation, amortisation and retained profit 3,421,012 9.6% 4,022,089 12.7%
35,637,332 100% 31,576,773 100%

* Though Dairy Development projects are part of total Purchased Goods & Services, infact they are directly contributing
towards the development of dairy sector in Pakistan. Its %age contribution towards Society & Development Initiatives
is calculated accordingly.

12 Management Report 2015

Key Financial Data
Six years at a Glance

(Rupees in million) 2015 2014 2013 2012 2011 2010

Trading Results
- Sales 102,986 96,458 86,227 79,088 64,824 51,487
- Gross Profit 34,127 27,324 24,161 21,523 16,725 13,879
- Operating Profit 16,317 14,113 11,471 10,966 8,458 6,858
- Profit Before Tax 12,520 11,009 8,113 7,978 6,503 5,696
- Profit After Tax 8,761 7,929 5,867 5,865 4,668 4,113

Balance Sheet
- Shareholders Funds 12,638 12,628 11,859 11,560 7,612 5,582
- Reserves 12,184 12,174 11,406 11,107 7,159 5,128
- Operating Fixed Assets 29,996 30,550 31,468 21,882 16,089 11,140
- Net Current Assets/Liabilities* (6,066) (6,288) 4,767 (3,120) (3,352) (1,396)
- Long Term Liabilities 11,487 11,326 22,429 19,351 10,821 7,622

Investor information for six years

- Gross Profit Ratio 33% 28% 28% 27% 26% 27%
- Operating Profit Ratio 16% 15% 13% 14% 13% 13%
- Profit Before Tax Ratio 12% 11% 9% 10% 10% 11%
- Profit After Tax Ratio 9% 8% 7% 7% 7% 8%
- Inventory Turnover Ratio 7.2 : 1 7.8 : 1 7.8 : 1 7.7 : 1 8.2 : 1 8.9 : 1
- Total Assets Turnover Ratio 2.1 : 1 1.9 : 1 1.7 : 1 1.8 : 1 2.2 : 1 2.5 : 1
- Price Earning Ratio 40.4 52.1 58.4 36.6 34.9 26.2
- Return on Capital Employed 61% 55% 27% 31% 43% 51%
- Market Value Per Share 7,800 9,100 7,550 4,733 3,597 2,375
- Debt Equity Ratio 53 : 47 61 : 39 68 : 32 69 : 31 69 : 31 66 : 34
- Current Ratio 0.7 : 1 0.7 : 1 1 : 1 0.8 : 1 0.9 : 1 0.9 : 1
- Interest Cover Ratio 8.3 : 1 5.5 : 1 4.4 : 1 5.4 : 1 7.2 : 1 12.1 : 1

* Net current assets/liabilities do not include current portion of long term liabilities.

Nestl Pakistan Limited 13

Pattern of Shareholding
of Nestl Pakistan Limited as at December 31, 2015

No. of Shareholding Total Shares

Shareholders From To Held

455 1 to 100 13,496

163 101 to 500 41,985
74 501 to 1000 57,106
86 1001 to 5000 182,591
19 5001 to 10000 144,720
7 10001 to 15000 89,846
1 15001 to 20000 18,898
4 20001 to 25000 93,541
1 25001 to 30000 25,912
1 30001 to 35000 30,866
1 35001 to 40000 38,137
2 40001 to 45000 83,755
2 50001 to 55000 105,802
1 55001 to 60000 56,807
1 65001 to 70000 66,289
1 80001 to 85000 82,717
1 100001 to 105000 100,556
1 120001 to 125000 124,124
1 155001 to 160000 155,216
1 210001 to 215000 210,865
1 220001 to 225000 224,720
1 365001 to 370000 370,000
1 370001 to 375000 375,000
1 385001 to 390000 387,334
1 425001 to 430000 428,052
1 430001 to 435000 430,551
1 535001 to 540000 538,235
1 1130001 to 1135000 1,134,364
1 1361001 to 1366000 1,365,956
1 3575001 to 3580000 3,580,000
1 3645001 to 3650000 3,649,248
1 4360001 to 4365000 4,364,666
1 26775001 to 26780000 26,778,229
836 Grand Total of CDC and Physical Shares 45,349,584

14 Management Report 2015

Classification of Shares by Categories
As at December 31, 2015

Categories of Members Numbers Shares Held Percentage

Directors and their spouse(s) and minor children 6 2,028,213 4.47

Executives 11 836 0.00
Associated Companies, undertakings and related parties* 7 35,577,464 78.45
Financial Institution 1 62 0.00
Insurance Companies 4 13,565 0.03
Mutual Funds, Modarabas and Pension Funds 4 101,905 0.22
Joint Stock Companies 16 4,658 0.01
Foreign Investors 14 1,344,636 2.97
General Public (Individual)
a. Local** 759 5,812,163 12.82
b. Foreign 1 100 0.00
Public Sectors Companies & Corporations 4 448,691 0.99
Others 9 17,291 0.04
Totals 836 45,349,584 100.00

Shareholders Holding 5% or above

* NESTLE S. A. 26,778,229 59.05
* IGI INSURANCE LIMITED 4,364,666 9.62
* PACKAGES LIMITED 3,649,248 8.05
* * SHAIKH SULTAN AHMED 3,580,000 7.89

Nestl Pakistan Limited 15

Key Shareholding and Shares Traded
As at December 31, 2015

Information on shareholding required under reporting framework is as follows:

No. of Shares %

1 Associated Companies, Undertakings and Related Parties:

1 Nestl S. A. 26,778,229 59.05
2 IGI Insurance Limited 4,364,666 9.62
3 Packages Limited 3,649,248 8.05
4 Gurmani Foundation 538,235 1.19
5 National Management Foundation 224,720 0.50
6 Industrial Technical & Educational Institute 21,666 0.05
7 Trustees Nestl Pakistan Ltd. Employees Provident Fund 700 0.00
35,577,464 78.45
2 Mutual Funds
1 CDC - Trustee National Investment (Unit) Trust 100,556 0.22
2 CDC - Trustee AKD Index Tracker Fund 969 0.00
3 CDC - Trustee Atlas Stock Market Fund 200 0.00
101,725 0.22
3 Directors and their spouse(s) and minor children
1 Syed Babar Ali 1,365,956 3.01
2 Syed Hyder Ali 428,052 0.94
3 Syed Yawar Ali 23,220 0.05
4 Osman Khalid Waheed 60 0.00
5 Syeda Nighat Ali (Wife of Syed Yawar Ali) 60 0.00
6 Perwin Babar Ali (Wife of Syed Babar Ali) 210,865 0.46
2,028,213 4.47

4 Executives 836 0.00

5 Public Sector Companies and Corporations

1 Zarai Taraqiati Bank Limited 430,551 0.95
2 Employees Old Age Benefits Institution 10,560 0.02
3 National Bank Of Pakistan 5,036 0.01
4 National Investment Trust Limited 2,544 0.01
448,691 0.99

6 Banks, Development Financial Institutions, Non-Banking Finance

Companies, Insurance Companies, Takaful, Modarabas and Pension Funds 22,839 0.05

7 Shareholders holding 5% or above voting rights
1 Nestl S. A. 26,778,229 59.05
2 IGI Insurance Limited 4,364,666 9.62
3 Packages Limited 3,649,248 8.05
4 Shaikh Sultan Ahmed 3,580,000 7.89
38,372,143 84.61
8 Details of Purchase of/Sale of shares by Directors / Company Secretary /
Executives and their spouses/ minor children during the year 2015: NIL

16 Management Report 2015

Statement of Compliance
with the Code of Corporate Governance for the year ended December 31, 2015

This Statement is being

1. The Company encourages 5. The Company has prepared a
presented to comply with representation of independent Code of Conduct and has
the Code of Corporate non-executive directors and ensured that appropriate steps
Governance (CCG) as directors representing minority have been taken to disseminate
interests on its Board of it throughout the Company along
contained in Rule No Directors. At present, the Board with its supporting policies and
5.19.23 of the Rule Book includes: procedures.
of the Pakistan Stock
Independent Director 6. The Board has developed a
Exchange Limited for the 1. Osman Khalid Waheed Vision/Mission Statement,
purpose of establishing overall Corporate Strategy
Executive Directors
a framework of good 1. Bruno Boris Olierhoek
and significant policies of the
Company. A complete record of
governance, whereby a 2. John Michael Davis
particulars of significant policies
3. Naveed A. Khan
listed company is managed along with the dates on which
Non-Executive Directors
in compliance with the they were approved or amended
1. Syed Yawar Ali has been maintained.
best practices of corporate 2. Syed Babar Ali
governance. 3. Syed Hyder Ali 7. All the powers of the Board
4. John Martin Miller have been duly exercised
5. Pierre Schaufelberger and decisions on material
The Company has applied transactions including
the principles contained in The Independent Director meets appointment and determination
the criteria of independence
the CCG in the following of remuneration and terms and
under clause 5.19.1 (b) of the conditions of employment of the
manner: CCG. CEO, other Executive and Non-
Executive Directors, have been
2. The Directors have confirmed taken by the Board.
that none of them is serving as
a director on more than seven 8. The Meetings of the Board
listed companies, including this were presided over by the
Company (excluding the listed Chairman and in his absence
subsidiaries of listed holding by a Director elected by the
companies where applicable). Board for this purpose and the
Board met at least once in every
3. All the resident Directors of quarter. Written notices of the
the Company are registered as Board meetings, along with
taxpayers and none of them has agenda and working papers,
defaulted in payment of any loan were circulated at least seven
to a banking company, a DFI days before the meetings. The
or an NBFI or, being a broker Minutes of the Meetings were
of a Stock Exchange, has been appropriately recorded and
declared as a defaulter by that circulated.
Stock Exchange.
9. During the year, one Board
4. Casual vacancies occurring member completed Corporate
on the Board on September Governance Leadership Skills
01, 2015 were filled up by the Director Education Programme
Directors on the same day. at the Pakistan Institute of
Corporate Governance.

Nestl Pakistan Limited 17

10. The Board has approved the 16. The Meetings of the Audit 20. The Statutory Auditors or the
appointment of the Head of Committee were held at least persons associated with them
Internal Audit, including his once in every quarter prior to have not been appointed to
remuneration and terms and approval of Interim and Final provide other services except
conditions of employment during Results of the Company and in accordance with the listing
the year. as required by the CCG. The regulations and the Auditors
Terms of Reference of the have confirmed that they have
11. The Directors Report for Committee have been formed observed IFAC guidelines in this
this year has been prepared and advised to the Committee regard.
in compliance with the for compliance.
requirements of the CCG and 21. The Closed Period, prior to
fully describes the salient 17. The Board has formed a Human the announcement of Final
matters required to be disclosed. Resource and Remuneration Results, and business decisions,
Committee. It comprises of which may materially affect the
12. The Financial Statements of the three members, of whom two market price of the Companys
Company were duly endorsed are Non-Executive Directors and securities, was determined
by the CEO and CFO before the Chairman of the Committee and intimated to the Directors,
approval of the Board. is a Non-Executive Director. Employees and Stock Exchange.

13. The Directors, CEO and 18. The Board has set up an 22. Material / price sensitive
Executives do not hold any effective Internal Audit function. information has been
interest in the shares of the disseminated among all market
Company other than that 19. The Statutory Auditors of the participants at once through the
disclosed in the Pattern of Company have confirmed Stock Exchange.
Shareholding. that they have been given
a satisfactory rating under 23. We confirm that all other
14. The Company has complied with the quality control review material principles enshrined in
all the corporate and financial programme of the Institute the CCG have been complied
reporting requirements of the of Chartered Accountants of with.
CCG. Pakistan (ICAP) and that they or
any of the partners of the firm,
15. The Board has formed an Audit their spouses and minor children
Committee. It comprises of do not hold shares of the
three Non-Executive Directors. Company and that the firm and
The Chairman of the Committee all its partners are in compliance
is an Independent Director. with the International Federation BRUNO BORIS OLIERHOEK
of Accountants (IFAC) guidelines CEO
on Code of Ethics as adopted by Lahore: February 16, 2016
the ICAP.

18 Management Report 2015

Review Report to the Members
on Statement of Compliance with Best Practices of Code of Corporate Governance

We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate
Governance (the Code) prepared by the Board of Directors of Nestl Pakistan Limited (the Company) for the year
ended 31 December 2015 to comply with the requirements of Rule No. 5.19 of Rule Book issued by of Pakistan Stock
Exchange where the Company is listed.

The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is to
review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects
the status of the Companys compliance with the provisions of the Code and report if it does not and to highlight any non-
compliance with the requirements of the Code. A review is limited primarily to inquiries of the Companys personnel and
review of various documents prepared by the Company to comply with the Code.

As part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal
control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider
whether the Board of Directors statement on internal control covers all risks and controls, or to form an opinion on the
effectiveness of such internal controls, the Companys corporate governance procedures and risks.

The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit
Committee, place before the Board of Directors for their review and approval its related party transactions distinguishing
between transactions carried out on terms equivalent to those that prevail in arms length transactions and transactions
which are not executed at arms length price and recording proper justification for using such alternate pricing
mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval of the
related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried
out any procedures to determine whether the related party transactions were undertaken at arms length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance
does not appropriately reflect the Companys compliance, in all material respects, with the best practices contained in the
Code of Corporate Governance as applicable to the Company for the year ended 31 December 2015.

KPMG Taseer Hadi & Co.

Chartered Accountants
(Bilal Ali)

February 16, 2016

Nestl Pakistan Limited 19

Notice of Annual General Meeting

Notice is hereby given that the 38th Annual General Meeting of Nestl Pakistan Ltd;
will be held at 12:30p.m. on April 25, 2016 at 304 Upper Mall, Lahore, to transact the
following business:

1. To receive, consider and adopt the Audited Accounts of the Company for the year ended December 31, 2015
together with the Directors and Auditors reports thereon.
2. To appoint Auditors for the term ending at the conclusion of the next Annual General Meeting and to fix their
remuneration. The retiring Auditors M/s. KPMG Taseer Hadi & Co., Chartered Accountants, being eligible, have
offered themselves for re-appointment.
3. To approve payment of a Final Cash Dividend of Rs. 90/- per share i.e. 900% to those who are Shareholders as at
the close of business on April 15, 2016, in addition to the 1000% Interim Cash Dividend (i.e. Rs. 100 per share)
already paid during the year 2015, as recommended by the Directors.

4. To authorise the Company, subject to the approval of the Securities and Exchange Commission of Pakistan, to
transmit its quarterly accounts by placing the same on the Companys website instead of circulating by post to the
Shareholders, as and by way of passing the following ordinary resolution:
RESOLVED THAT subject to all prior necessary approvals as stipulated by the regulatory authorities, the Company
be and is hereby authorised to transmit its quarterly accounts by placing the same on the Companys website
instead of circulating by post to the Shareholders.
FURTHER RESOLVED that the Company Secretary be and is hereby authorised to do all necessary acts, deeds and
things in connection therewith and ancillary thereto as may be required or expedient to give effect to the spirit and
intent of the above resolution.


5. To transact any other business with the permission of the Chair.


Ali Sadozai
Company Secretary
March 31, 2016

20 Management Report 2015

This Statement sets out the material facts pertaining to the Special Business to be transacted at the Annual General
Meeting of the Company.

The Securities and Exchange Commission of Pakistan (SECP) vide Circular No. 19 of 2004 has allowed listed companies
to place their quarterly accounts on their website instead of sending the same by post. Prior permission of the SECP will
be sought for transmitting the quarterly accounts through Companys website after the approval of the shareholders.
This would ensure prompt disclosure of the information to the shareholders, as well as saving of costs associated with
printing and dispatch of the accounts by post. The Company, however, will supply the printed copies of accounts to the
shareholders on demand at their registered address free of cost.

1. Share Transfer Books of the Company shall remain closed from April 18, 2016 to April 25, 2016 (both days inclusive)
and no transfer will be registered during that time. Share transfer deeds received in order with the Shares Registrar
of the Company i.e. Central Depository Company of Pakistan Limited, Share Registrar Department, CDC House,
99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 at the close of business on April 15, 2016 will be
treated in time for entitlement of payment of dividend.

2. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member as proxy
to attend and vote instead of him/her.

3. The instrument appointing a proxy must be received at the Registered Office of the Company at 308-Upper Mall,
Lahore, not later than forty eight (48) hours before the Meeting.

4. Shareholders whose shares are registered in their account/sub-account with Central Depository System (CDS) are
requested to bring original CNIC along with their account number in CDS and participants ID number for verification.
In case of appointment of proxy by such account holders it must be accompanied with participants ID number and
Account/Sub-account number along with attested photocopies of CNIC or the Passport of the beneficial owner.
Representatives of Corporate Members should bring the usual documents required for such purposes.

5. Members should quote their folio number in all correspondence with the Company and at the time of attending the
Annual General Meeting.

6. Shareholders are requested to notify the change of address, Zakat Declaration and Tax Exemption Status with its
valid certificate, if any, immediately to our Shares Registrar.

7. In case of joint holders, only one member whose name will appear as main title shareholder in our list of
shareholders, will be allowed to attend the General Meeting.

Special Notes to the Shareholders:

8. Submission of Copies of CNIC (Mandatory):
The Securities & Exchange Commission of Pakistan (SECP) vide its SRO 779 (I)/2011 dated August 18, 2011,
SRO 831(I)/2012 dated July 5, 2012 and SRO 19 (I)/2014 dated January 10, 2014 has made it mandatory that the
dividend warrants should bear the Computerised National Identity Card Number (CNIC) of the registered member
or authorised person, except in the case of minor(s) and corporate members. Therefore individual members or their
authorised representatives who have not yet provided an attested copy of their valid CNICs to the Company/ Shares
Registrar are requested to provide the same at their earliest to avoid any inconvenience. The corporate entities are
requested to provide their National Tax Number (NTN).

Nestl Pakistan Limited 21

9. Dividend Mandate (Optional):
In order to make the process of payment of cash dividend more efficient, SECP vide its Circular No. 8(4) SM/CDC
2008 dated April 5, 2013 has issued instructions so that the shareholders can get their dividend credited in their
respective bank accounts electronically without any delay. The shareholders may, therefore, authorise the Company
to credit the dividend directly to their bank account for all future dividends declared by the Company. Accordingly,
all non-CDC shareholders are requested to send their bank account details to the Companys Share Registrar at
the address given above. Shareholders who hold shares with Participant/Central Depository Company of Pakistan
Limited (CDC) are advised to provide the mandate to the concerned Stock Broker / Central Depository Company of
Pakistan Limited.

10. Deduction of Income Tax from dividend under Section 150 of Income Tax Ordinance, 2001:
As per the provisions of Section 150 of the Income Tax Ordinance, 2001 (Ordinance), different rates are prescribed
for deduction of withholding tax on the amount of dividend paid by the companies. The current withholding tax rates
are as under:
(a) For Filers of Income Tax Returns: 12.50%
(b) For Non-Filers of Income Tax Returns: 17.50%

To enable the Company to make tax deduction on the amount of Cash Dividend @ 12.50% instead of 17.50%, all
the shareholders whose names are not entered into the Active Tax-payers List (ATL) provided on the website of the
Federal Board of Revenue (FBR), despite the fact that they are Filers, are advised to make sure that their names
are entered into ATL before the date of issuance of Dividend Warrants, otherwise tax on their Cash Dividend will be
deducted @ 17.50%.

The Corporate Shareholders having CDC account are required to have their National Tax Number (NTN) updated with
their respective participants, whereas corporate physical shareholders should send a copy of their NTN certificates to
the Company or Companys Share Registrar and Share Transfer Agent, M/s. Central Depository Company of Pakistan

The shareholders while sending NTN or NTN certificates, as the case may be, must quote Company name and their
respective Folio numbers.

As per FBRs clarification, the valid Exemption Certificate under Section 159 of the Ordinance is mandatory to claim
exemption of withholding tax under Clause 47B of Part-IV of Second Schedule to the Ordinance. Those who fall
in the category mentioned in above Clause must provide valid Tax Exemption Certificate to our Shares Registrar;
otherwise tax will be deducted on dividend amount as per rates prescribed in Section 150 of the Ordinance.

For shareholders holding their shares jointly as per the clarification issued by the FBR, withholding tax will be
determined separately on Filer / Non-Filer status of Principal shareholder as well as Joint-holder(s) based on their
shareholding proportions. Therefore, all shareholders who hold shares jointly are required to provide shareholding
proportions of Principal Shareholder and Joint-holder(s) in respect of shares held by them to the Registrar and Share
Transfer Agent in writing as follows:




22 Management Report 2015

11. Circulation of Annual Audited Financial Statements and Notice of AGM to the Members through E-mail:
SECP through its Notification No. SRO. 787(1)/2014, dated September 08, 2014 has allowed companies to circulate
Annual Audited Financial Statements (Annual Financial Statements) along with Notice of Annual General Meeting
(Notice of AGM) to its members through e-mail. In order to avail this facility, the members who desire to opt
to receive Annual Financial Statements and Notice of AGM through e-mail are requested to provide their written
consent and e-mail addresses to the Share Registrar at the below mentioned address.

Please note that Annual Reports / Financial Statements are also available on the Companys website.

For any query/ difficulty/ information, the members may contact the Companys Share Registrar and share Transfer
Agent, at the following address, phone/fax numbers:

Central Depository Company of Pakistan Limited

Share Registrar Department
CDC House, 99-B, Block B
S.M.C.H.S., Main Shahra-e-Faisal
Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275)
Fax: (92-21) 34326053
Email: info@cdcpak.com
Website: www.cdcpakistan.com

Nestl Pakistan Limited 23

About Nestl

Nestl Pakistan is the leading Exchange (PSE), our food processing

Nutrition has been in our
Nutrition, Health and Wellness company has been operating in
DNA since 1867, when company in Pakistan. Our key focus Pakistan since 1988 under a joint
Henri Nestl developed is to spread nutrition, health and venture with Milk Pak Ltd, whose
wellness to our consumers across management we took over in 1992.
the first infant food. Today,
the country. We believe in For the last several years, Nestl
millions of consumers continuing to enhance the quality of Pakistan has been consistently
across Pakistan mirror our peoples lives throughout our value placed among the top companies of
chain. the PSE. Our existing products grow
emphasis on nutrition,
through innovation and renovation,
realising that food choices Nestl Pakistan is headquartered while maintaining a balance in
impact their health and in Lahore, with four production geographic activities and product
facilities across the country. Factories lines. We respect the cultures of the
quality of life.
in Sheikhupura and Kabirwala are regions in which we operate, and
multi-product, whereas the ones recognise the need to improve the
in Islamabad and Karachi are water quality of life for the consumers in
factories. Nestl Pakistan takes these areas. Our priority is always
great pride in its commitment to to bring people the best quality
excellence in product quality and products, keeping in mind their
taste. We believe that in order to location and age demographic, and
be successful, we must also create in accordance with their needs. This
long-term value for our society as is ensured through our effective
well as for our shareholders; we marketing and widespread sales and
make important contributions to distribution network.
society in order to enhance the
livelihoods of millions of people. Our companys strategy is guided
by Nestls Corporate Business
Nestl Pakistan Ltd. is a subsidiary of Principles, which are in line with
Nestl S.A., a company internationally accepted norms and
based in Vevey, Switzerland. practices.
Registered on the Pakistan Stock

24 Management Report 2015

Nestl Pakistan Limited 25
Board of Directors
as on December 31, 2015

Name of Director Title Status Nationality Term expires

1 Syed Yawar Ali Chairman Non-Executive Director Pakistani 30.06.2016
2 Bruno Boris Olierhoek Managing Director Executive Director (Nominee of Nestl S.A.) Dutch 30.06.2016
3 Pierre Schaufelberger Director Non-Executive Director (Nominee of Nestl S.A.) Swiss 30.06.2016
4 John Michael Davis Director Executive Director (Nominee of Nestl S.A.) Newzealander 30.06.2016
5 Syed Babar Ali Director Non-Executive Director Pakistani 30.06.2016
6 Syed Hyder Ali Director Non-Executive Director Pakistani 30.06.2016
7 Naveed A. Khan Director Executive Director (Nominee of Nestl S.A.) Pakistani 30.06.2016
8 John Martin Miller Director Non-Executive Director (Nominee of Nestl S.A.) British 30.06.2016
9 Osman Khalid Waheed Director Independent Director Pakistani 30.06.2016

Officers Audit Committee Human Resource and

Bruno Boris Olierhoek Osman Khalid Waheed Remuneration Committee
Chief Executive Chairman Syed Babar Ali
Independent Director Non-Executive Director
John Michael Davis
Chief Financial Officer Syed Hyder Ali Chairman
Member Syed Hyder Ali
Ali Sadozai Non-Executive Director Non-Executive Director
Company Secretary
Syed Babar Ali Member
Jehanzeb Ahmed Member
Head of Internal Audit Bruno Boris Olierhoek
Non-Executive Director
Executive Director
Jehanzeb Ahmed Member
Member Akmal Saeed
Head of Internal Audit Head of Human Resource (w.e.f March 1, 2016)
Secretary (w.e.f February 16, 2016)

26 Management Report 2015

Company Directory

Registered and Factories Centre Zone

Corporate Office Sheikhupura Lahore
Nestl Pakistan Limited 29-km Lahore - Sheikhupura Road, 3-K, Commercial Plaza,
308 Upper Mall, Sheikhupura, Pakistan. Model Town Extension, Lahore, Pakistan.
Lahore - 54000, Pakistan. Phone: (056) 3406615-29 Phone: 042-35916650-2
PABX: (042) 111 637 853 Fax: (056) 3406639 Fax: 042-35916752
Fax: (042) 35789303-4
Kabirwala Gujranwala
Corporate Office Annex
10-km, Khanewal Road, Kabirwala, Habib Bank Plaza,
304 Upper Mall,
District Khanewal, Pakistan. 1st Floor Satellite Town, Gujranwala,
Lahore, Pakistan.
Phone: (065) 111 637 853 Pakistan.
309 Upper Mall,
Fax: (065) 2411432 Phone: 055-3733415, 3733243
Lahore, Pakistan

Islamabad Faisalabad
Resident Corporate Office
Plot No. 32, Street No. 3, Sector I-10/3, Ground Floor, Al-Haq Plaza 271-A,
Plot BC/10, 8th Floor, Clifton Diamond, Small D Ground, Peoples
Industrial Area Islamabad, Pakistan.
Block 4, Clifton Karachi, Pakistan. Colony I, Faisalabad, Pakistan.
Phone: (051) 4445991-3
Phone: (021) 5833935-6 Phone: 041-8716937, 8555607

Fax: (021) 35833937
Auditors Plot No. A23, North Western
Industrial Area, Port Qasim Karachi, Street No. 7, Shalimar Colony,
K.P.M.G. Taseer Hadi & Co. Pakistan. Bosan Road, Multan, Pakistan.
Chartered Accountants Phone: (021) 34720152-4 Phone: 061-6212900-2

Share Registrar / Transfer Regional Sales Offices North Zone

Agent Islamabad
South Zone
Central Depository Company of Pakistan Plot No. 395-396,
Limited Sector I-9/3, Industrial Area, Islamabad,
Share Registrar Department Plot BC/10, 8th Floor, Clifton Diamond, Pakistan.
CDC House, 99-B, Block B Block 4, Clifton Karachi, Pakistan. Phone: 051-4859301-2
S.M.C.H.S. Main Shahra-e-Faisal Phone: (021) 5833935-6 Fax: 051-4859303
Karachi - 74400 Fax: (021) 35833937
Phone: 0800-25275 Jhelum
PABX: (021) 111-111-500 Quetta
Fax: (021) 34326053 House No. 5/155 Sabir Road,
63-B-D, Chaman Housing Scheme, Jhelum Cantt, Jhelum, Pakistan.
Email: info@cdcpak.com
Opp. Askari Park, Quetta, Pakistan. Phone: 0544-720004
Website: www.cdcpakistan.com
Phone: 081-2834887, 081-2821543, Fax: 0544-625605
Legal Advisors Peshawar
Chima & Ibrahim. Hyderabad
Plot No. 1712, Near Kohat Road, Qamar
Advocates House No. 178, Block C Unit 2 Din Gare Bridge, Ring Road, Peshawar,
Corporate Counsel Latifabad, Hyderabad, Pakistan. Pakistan.
Phone: 022-3860403 Phone: 091-2323237
Faysal Bank Limited
Citibank N.A.
Deutsche Bank A.G.
Habib Bank Limited
MCB Bank Limited
Standard Chartered Bank (Pakistan)
United Bank Limited
National Bank of Pakistan Limited
Allied Bank Limited
Meezan Bank Limited

Nestl Pakistan Limited 27

Management Committee
From Left to Right (Sitting) From Left to Right (Standing)
Waqar Ahmad Sheikh Head of Corporate Affairs Babar Khan Business Executive Manager, Juices
Khurram Zia Country Business Manager, Nestl Waters Akmal Saeed Head of Human Resource (w.e.f March 1, 2016)

Roland Stieger Business Executive Manager, Ambient Dairy Abdullah Jawaid Ahmad Business Executive Manager, Chilled Dairy

Rustem Oguz Head of Supply Chain Humaira Ashar Market Innovation Lead

Bruno Boris Olierhoek Managing Director Nausheen Jaffery Market Nestl Continuous Excellence Manager

Nadia Omer Business Executive Manager, Coffee and Breakfast Cereals Arsalan Khan Head of Sales

John Michael Davis Head of Finance and Control Nauman Khan Country Business Manager, Nestl Professional

Naveed Ahmad Khan Head of Technical Fuad Ghazanfar Business Executive Manager, Food

Asim Rifat Country Business Manager, Infant Nutrition

28 Management Report 2015

Ali Sadozai Samra Maqbool Shahzad Umar
General Counsel and Company Secretary Head of Communication and Marketing Services Head of Human Resource

Nestl Pakistan Limited 29

30 Management Report 2015
Human Resource

To strengthen the leadership pipeline, attract the right talent for the right
In 2015, we continued People Manager Toolkit & Nestl jobs and to build a talent pipeline for
to improve our people Leadership Development Experience the future. Few of the highlights are:
processes to sustain were launched as major learning
initiatives. These programmes were 15 universities were targeted for
an edge over our designed for capability building of Campus Drives and Job Fairs.
competition. Our focus first line managers by deploying
341 internships were offered,
remained on leadership tools and concepts in various
situations enabling a positive impact 100 apprentices were taken on-
development, capability on business. There was a focus on board,
building, E-learning and developing and nurturing a culture 21 apprentices were inducted
employee relations of learning and a knowledge sharing under our programme
platform Freds Learning Channel Kero Aitemaad - Women
management for building was launched. It proved to be very Empowerment Platform,
high performance teams effective in enabling and engaging
10 Management Trainees were
to achieve organisational our people through quizzes, case
studies, quotes and leadership
goals. Diversity and videos. CV clinics were conducted
commitment to nationwide for one-on-one
compliance remained at Human Resource played an effective career counselling sessions.
role in developing Effective Coaching
the heart of our agenda. skills. In this context, 15 Nestl Employee Relations and Community
Managers were certified as master Engagement remained key focus
coaches through International areas at our factories to strengthen
Coaching Federation. These coaches our relationship with the employees
will conduct their coaching clinics and surrounding communities. We
across the company to develop also arranged training for our line
coaching culture at Nestl Pakistan. managers for effective and efficient
management of day-to-day people
Special focus was also given to matters and situations related to
employee careers; Career Coaching work.
Clinics were conducted for
employees to develop career maps; Gauging the pulse of the
helping them foresee their future organisation, Employee Engagement
with the company. Survey Nestl & I was conducted
in 2014 and Market & Functional
Many initiatives were taken for the Action Plans developed in 2015. The
development of Non Management quarterly monitoring of Action Plans
Staff. Performance Appraisal was carried out and progress was
and Development process was shared with the Market.
implemented for non-management
staff. Learnings from this year An Employee Volunteer Programme
will be gathered and utilised to Mashal-e-Rah continued to spread
further strengthen the performance the light of compassion. The key
management system for 2016. activities included Blood Donation
Drive across Head Office, factories
In the current changing and and all zonal sales offices. Donations
challenging business environment, from employees were matched
attracting top talent has been a tough equally by Nestl for earthquake-hit
task. Various steps were taken to families of Chitral.

Nestl Pakistan Limited 31

32 Management Report 2015
Milk Collection and Dairy Development

Milk Collection and Dairy In 2015, the dairy development team Previously, the small farmers were
trained more than 2,500 farmers paid in cash through an agent. The
Development (MCDD) at their Nestl training farm while current arrangement enables direct
continued its journey to 78,000 farmers attended farmer help and secure transfer of funds to the
excellence by meeting camps organised at the village level. farmer and also offers them the
The team assisted more than 900 flexibility to withdraw cash from any
business expectations dairy farmers to cultivate silage on of the mobile payment outlets.
in volume delivery, cost more than 12,000 acres. It helped
and compliance. Nestl our dairy farmers in minimising their Apart from an efficient payment
fodder shortages and sustainable process, the Mobile Banking Project
Continuous Excellence supply of milk to Nestl. brings transparency and better
(NCE) journey aligned the control around these payments. For
MCDD team with business In addition to the development the farmers, it is not only speedy
of 29 high quality animal feed and convenient, but also brings
objectives, developed the manufacturers in Punjab, the team them in the ambit of the formal
capability to accelerate also developed a number of cotton banking sector with introduction to
continuous improvement seed cake manufactures who are other banking products and financial
now producing high quality cotton facilities. Through the solution
and minimised waste by seed cake which would contribute in implemented jointly by banking and
improving operational maintaining good animal health and telecom partners, Treasury and field
efficiencies. yielding milk within the safe aflatoxin operations, more than 1,000 farmers
level. were registered across 190 locations
Nestl Pakistan is the 4th biggest till November 2015, and will soon
fresh milk sourcing market in the Implementation of our Back to Basis be paid via mobile wallet whereas
Nestl world. MCDD operation initiative was continued to increase 328 farmers at 72 locations are
extends into Punjab, Sindh and our focus on small farmers. With the already being paid through this digital
Khyber Pakhtunkhwa provinces help of our Agri-Services team, we solution.
of Pakistan. We collect milk from were able to engage more farmers of
150,000 dairy farmers and have small and medium capacities to help Financing Scheme for
3,000 milk collection points. them through the implementation of
best farm practices and support their farmers
Following our ambition of supplying businesses. In collaboration with the National
best quality milk with sustainable Bank of Pakistan, Nestl is facilitating
sourcing at a competitive price, the MCDD took two new initiatives its farmers for loan financing
team delivered fresh milk exactly as during 2015 to facilitate dairy business through Prime Ministers
per business need, with lowest ever farmers. Youth Business Loan Scheme.
microbial and mycotoxin levels (toxin The scheme aims to enhance the
capability of the farmers through
produced due to fungus in animal Mobile Banking for
feed) and reduced milk rejections. As enabling them to meet the different
a result of our efforts and success in
farmers needs for their animals and
achieving business targets, our Zonal Making use of the latest mobile farms and is expected to bring an
and Human Resource teams were banking systems, Nestl Pakistan, improvement in the livelihood of
recipients of the Maan Hamara Tum in 2015, introduced Mobile Banking the farmers and the development
Se awards (Nestl Pakistan internal Project to facilitate farmers, enabling of dairy farming. Around 1,000
awards). then to receive their payments farmers are likely to benefit from
directly in their mobile bank this financing facility at a very low
accounts. financing rate with easy payment

Nestl Pakistan Limited 33

34 Management Report 2015
Supply Chain

With the constantly evolving critical promotional services, the

In 2015, Supplier Facing economic environment, the biggest team also made sure that minimal
Supply Chain (SFSC) challenge in the year 2015 was to cost impact was passed on to the
initiatives took centre collaborate with key partners in the consumer.
value chain and create an alliance
stage, where we aligned for positive change. Keeping this Capability building is a key company
our value chain with key in mind, multiple Supplier Facing priority for laying the foundation
business partners to Supply Chain (SFSC) initiatives for talented people, which will
were undertaken with key raw and help deliver success in the future.
create win-win growth packaging material suppliers. Supply Chain led the pack in rolling
scenarios. out the training plan, which was
As a consequence of these complemented by a remarkable
initiatives, Procurement and Factory improvement in e-learning usage.
Supply Chain embarked on a journey As a result, Supply Chain Pakistan
for better quality, reliability and stands second globally within the
subsequently to create Nestl world.
win-win scenarios with our suppliers.
Additionally, the ongoing alternate Understanding consumer behavior
supplier development projects has always been the mainstay of
anchored around the objective our work. This year, our renewed
to maximise profitability and commitment to grasp an even
shareholder value also ensured better understanding of the
improved cost and reliability of consumer made a colossal impact
supply by the Supply Chain and on our performance. To achieve
Procurement teams. this, a diverse cross functional team
was taken on board to revamp
Enhancing payables was a must- our monthly business planning
win battle this year. The team put process. This allowed us to be more
in a considerable amount of effort, responsive and, at the same time,
aided by decreasing interest rates, sensitive to consumer needs and
to achieve an improvement of largely aided the business to take
3,750 bps over 2014. These steps over the helm at the marketplace.
improved the capital efficiency of the Moreover, this initiative also helped
company and enhanced shareholder us improve on critical performance
value. indicators such as dispatch, on-
shelf freshness, service level and
In Logistics operations, safety, forecasting accuracy, which in turn
agility and flexibility remained the had a twofold impact: it assisted
core areas of focus while delivering us in achieving sustained growth
the ever-growing sales volume. and better equipped us to face the
Moreover, by complying with challenges that might surface in
procedural safeguards such as multi- 2016.
skilling of the staff and in-housing

Nestl Pakistan Limited 35

36 Management Report 2015

Technical and Production Safety, Health and Environment To further delight our consumers,
also remained a priority, making our Globe Quality Monitoring System
have played a vital role operations safer for all those linked was successfully implemented at
to drive growth in the with our operations. Infant Cereals, Infant Formula, Nestl
market. Our commitment to Waters and Chilled Dairy plants. The
Next year, our focus will remain first-of-its-kind Bulk Aseptic Filler for
Manufacturing Excellence on further improving our Safety, Nestl Professional was successfully
enabled us to not just Health and Environment practices, installed at the factory another
sustain but improve in enhancing operational productivity first for Nestl Pakistan. The filler
and supporting businesses in re- features a packing size from 4 litres
all dimensions of Safety, igniting growth by ensuring product to 12 litres.
Quality, Cost, Delivery and superiority and consistency.
Environment. Through strong problem solving
Sheikhupura Factory initiatives and extensive focus,
Our ambition of Going for Zero and significant improvements were
2015 was another year of continuous recorded in Asset Intensity and the
Being Brilliant at Basics empowered
improvement for Sheikhupura (SKP) Recordable Injury Rate.
us to significantly increase the asset
Factory. Due to a keen focus on
intensity of our production lines. As
NCE, Sheikhupura Factory is now The Nestl Sheikhupura Factory
a result of sweating of our assets,
the first ever factory in the market became the first site in Pakistan
we were able to deliver more value
to stand at Emerging rating in NCE as well as the Nestl world to start
to our consumers while cutting down
Foundations. implementing the Alliance for Water
on waste things that they do not
value. We further enhanced the Stewardship (AWS) standard which
Nestl Pakistan has embarked on promotes better management of
quality of our products and reduced
TPM, one of the advanced practices site-specific water use and the water
consumer complaints through a
of NCE. TPM is further engaging our catchment areas to address shared
number of defect reduction projects.
shop floor people to deliver improved water concerns related to quality,
results in a structured way and quantity and governance.
Our Nestl Continuous Excellence
will further accelerate our journey
(NCE) journey has delivered
towards re-igniting growth in the
sustainable results. We are the
coming years. Kabirwala Factory
first market across Zone Asia,
The Kabirwala Factory continued
Oceania and Africa (AOA) to open
In line with Nestls commitment its journey towards manufacturing
NCE Foundation Gate in Corporate
to community engagement, Nestl excellence.
Technical. Technical and Production
Waters Global CEO Marco Settembri
have successfully embarked on
and Nestl Pakistan Managing As a part of Focused Improvement
the journey of Total Performance
Director (MD) Bruno Olierhoek journey, several Define, Measure,
Management (TPM) which will
inaugurated a clean drinking water Analyse, Improve, Control (DMAIC)
bring efficiency improvement in our
facility in Bhatti Dhilwan village, near projects were completed this year,
production lines. A special emphasis
the factory. At least 5,000 people which enabled the factory to achieve
will also be placed on making the
belonging to the neighboring areas its best ever record production and
entire value stream leaner.
will have access to clean drinking asset intensity. Many new initiatives
water daily. were implemented across the factory
To deliver on our promise of
and these contributed significant
Nutrition, Health and Wellness,
A new Canteen and Lockers for savings to the business.
we worked endlessly to make our
our third party contractors was also
products healthier and tastier. Now
inaugurated by the MD. In order to deliver best quality
products, many defect reduction
variants are Calorie Smart, compared
The factory successfully passed projects were completed. Successful
to the competition. Furthermore,
the NIMS, ISO 17025, and NSF ISO 17025 and Food Safety System
we kept a special focus on further
and SQTS audit with zero non- Certification (FSSC) 22000 re-
enhancing the quality of fresh milk by
compliance. FSMS and ISIS 3 Audit certification and an excellent
building the capabilities of farmers in
were also successful. rating in P-test are other notable
the field.

Nestl Pakistan Limited 37


achievements. By embedding the of water filtration plant, repair of old eliminating and sustaining zero first
Safety First Mindset and Capability schools and the construction of a aid cases in Supply Chain operation.
Development through extensive new school. Additionally, Knowledge Street was
trainings on safety, the factory was designed for employees where all
able to achieve remarkable reduction Port Qasim Factory Standard Operating Procedures were
in Recordable Injury Rate and Zero posted in pictorial form to act as a
Lost Time Injury in 2015. The key focus of Port Qasim Factory quick reference. This was highly
in 2015 was to enhance productivity appreciated and taken as a best
The Kabirwala Factory successfully in operations, ensure safe working practice to implement at the rest of
installed KRONOS attendance environment and supply the product the sites.
system. The new setup will help with the right quality.
ensure the safety and security of NCE tools helped in improving safety There was a strong team
all our people as well as our factory and eliminated potential hazards commitment to reduce environment
assets. Several CSV initiatives were from routine and nonroutine footprint through energy and water
completed in the communities activities. As a result, Zone AOA consumption reduction. A new 1,000
around the factory like installation awarded Best of the Best award for tonnes tank was installed to increase

38 Management Report 2015

the storage capacity of raw water
and save 15,000 tonnes of water

Following our gender diversity

roadmap, female Engineering
Associates were inducted to
accomplish the objective of women
empowerment and development of
their competencies.

Nestl Pakistan also rebuilt the

Government Primary Sindh School
at Peerano Goth, located in the
suburbs of Port Qasim Industrial
zone. The repair and refurbishment
has allowed hundreds of children
in the surrounding areas to attend
school again.

Islamabad Factory
In 2015, key focus of Islamabad
Factory was ensuring a safe working
environment as well as increasing
productivity with quality. NCE tools
helped the factory in increasing
production capacity by 14% and
improving loading efficiency to meet
challenges in the years to come.
New loading dock was constructed,
which has increased direct loading
of products to distributors from 30%
to 52%, hence reducing the delivery
time to customers. Water saving
projects were implemented in 2015,
thus, reducing the environment

Islamabad Factory has achieved

Satisfactory rating in Nestl Market
Audit which took place in October.
This factory is a pioneer in process
release for the last seven years
and is committed to sustaining it
in the coming years to delight the

Nestl Pakistan Limited 39

40 Management Report 2015
Quality Assurance

The Quality Assurance team also

During 2015, Nestl strove to ensure the quality of its
Pakistan developed its raw materials by actively engaging
farmers and rural development
Quality and Food Safety
organisations, as well as public and
Management Systems private entrepreneurs.
across the entire value
The department was involved
chain which helped to
in training farmers about crop
live up to the promise cultivation and best practices in
of consistent quality livestock management by proactively
sharing its experiences and
and safe products. The
knowledge regarding potential food
systems went through safety issues, which could have
extensive assessments arisen due to improper agricultural
and storage practices.
and verifications by both
internal and external The Quality Assurance team
assessors. also revolutionised cattle feeding
protocols across the entire milk shed,
contributing to improved quality of
life for dairy farmers by increasing
their crop and milk yields.

The quality systems were also

strengthened in downstream
operations at distributors and
retailers level by ensuring good
warehouse practices and developing
easy-to-understand visual standards.
The department was also involved
in training and coaching retailers
on proper handling practices for
different product categories.

In 2015, all four factories of Nestl

Pakistan were audited and re-
certified by a renowned certification
body against international standards
on food safety and quality like
FSSC 22000 and ISO 9001 as well as
internal standards like Nestl Quality
Management System. The Quality
Assurance labs in all factories were
accredited against the international
lab competency standard ISO 17025.

Nestl Pakistan Limited 41

42 Management Report 2015
Nestl Continuous Excellence

The year ended on a high note as

2015 continued to be a the Market was able to achieve the
strong year for Nestl distinction of two Gate Openings
Continuous Excellence within Business units; Gate
Opening is the title awarded as an
(NCE) in building the acknowledgement of a high level
capabilities of our of maturity on both capability and
teams and delivering proven results.

tangible results within The NCE journey was successfully

the organisation. The complemented by our Lean Initiative,
NCE journey began with which was extended to the Milk
Collection and Dairy Development
Foundations and after a function an integral part of our
brilliant run in Operations, value chain. The ambition is to drive
the journey was extended efficiency throughout our operations
and continue our war against waste.
into Business units. With the spirit of continuous
improvement, the Lean team also
initiated the first ever Identifying
Business Opportunities for the
Market. This endeavour will help
prioritise resources behind the
initiatives, which help drive value for
the stakeholders, and ultimately drive

Nestl Pakistan Limited 43

44 Management Report 2015
Finance & Control and GLOBE

In 2015, our focus was Delivering Improved Finance & Control also played an
important role in developing Finance
to drive sound business Financial Performance and Business acumen across the
decision making in order Finance & Control has continued company by conducting Value
to enhance the business planning Creation business simulation
to optimise profitable processes and leverage technology sessions.
growth, free cash flow driven financial solutions, ensuring
and improved return to the delivery of improvement in Free GLOBE
Cash Flow on the back of better
shareholders. margins and effective working capital GLOBE created competitive gaps by
management. providing consumer and customer
focused Business Processes and
Solutions along the value chains,
Governance and Risk including
Driving stewardship in our Internal Improved Information System /
Controls was once again an Information Technology Security
important area of focus. We also and Compliance framework
improved our integrated business to remain a trusted business
risk management processes, both partner.
of which strengthened business Leveraging the GLOBE
governance at all levels. Solutions, Processes and
Infrastructure, we continued
Developing Team our journey to eliminate legacy
applications and upgrade to
Capability the standard solutions used
As a result of having the Finance worldwide in Nestl.
community fully engaged across the
Implementing the Digital Service
business, many career opportunities
building blocks to support the
were made possible, enabling the
Market digital ambition.
achievement of personal aspirations.

Nestl Pakistan Limited 45

46 Management Report 2015

The Sales function at trade level, CCSD launched an at winning with consumers and
automated tool, which helped in delighting them with an extensive
continued to be the improving the offtake and was array of consumer-centric activities.
growth engine for Nestl recognised globally as well. This included the continuation of
by ensuring steadfast Choose Wellness Choose Nestl
Additionally, CCSD in pursuit of being (CWCN) and various promotions like
access to consumers to Brilliant at Planning, revamped the Delighting the Nation (on Pakistan
their favourite brands. Integrated Commercial Planning Day), Ramadan, NESCAFE and
The teams leveraged their (ICP) process, which in turn helped Juices. Promotions are becoming
to create robust business plans for a big success with shoppers and
expertise in converting 2016. consumers alike. As part of CWCN,
shopper insights into best- nutritionists offered free health
in-class executions at point In order to win with our Popularly checks and nutritional guidance
Positioned Products (PPP), the to customers. Shoppers and their
of sale to provide delightful Sales team executed a major trade families were also educated about
shopping experiences. drive where PPP Hangers were how to lead an active and healthy
deployed at 25,000 stores. Hangers lifestyle.
Channel and Category are specially designed units that will
help increase the stock depth and Key Accounts cooperative working
Sales Development significantly improve visibility of our rapport with local and international
Channel and Category Sales PPPs, making it more appealing for modern trade has been one of the
Development (CCSD) plays a the shoppers. foremost growth drivers. Engaging
pivotal role in driving success in modern trade customers through
the marketplace. In 2015, CCSD Furthermore, the CCSD Team with a vision of mutual respect and
team worked with a renewed focus its globally acclaimed monthly sales consideration for each others
to improve their understanding of review process continues to improve business needs has proved to be
shoppers, channels and categories forecasting accuracy that is helping instrumental in driving positive
in this dynamic environment and us in better serving our customers, growth through the years. The
customised executions in trade. retailers and shoppers. channel offers a significant
CCSD ensured Availability, Visibility opportunity in providing the right
and Accessibility (AVA) of Nestl
products in the Market to create a
Key Accounts Team platform to connect with the growing
urban, modern shoppers. Effective
better shopping experience. With local and international modern Point of Purchase communication,
trade segments quickly proliferating focused investment and the vision
The team also focused on capability the market, the consumer experience to drive mutual profitable growth
development of Distributor Sales is becoming even more dynamic; and has assisted Nestl in being a
Force to deliver a standardised the relation of customers to products favoured commercial partner for our
execution at every store. In Call has become increasingly personal. customers.
Execution (ICE) the Nestl way to
do Sales was inculcated in the Keeping in mind this dynamic, Nestl
Distribution Sales Force to achieve Key Accounts launched a series of
strong results. To monitor executions successful campaigns in 2015 aimed

Nestl Pakistan Limited 47

48 Management Report 2015
Consumer Communication

The Communications
function at Nestl is
committed to providing
competitive advantage to
build strong brands that
deliver business results,
whilst strengthening our
corporate Nutrition, Health
and Wellness (NHW)

The function continued to bolster

corporate equity through company-
wide initiatives integrating multiple
brands, like Pyaray Pakistan.

The sub functions lay the foundations

of building strong brands by providing
deeper consumer and shopper
understanding and NHW credentials
at one end and world class execution
on the other.

Be the Voice of the

Consumer CIMR Digital and Mobile We also continue to explore
In 2015, the Consumer Insight e-commerce opportunities in the
Mobile technology and the ever market to accelerate our trajectory
and Market Research (CIMR) evolving social media are disrupting
team helped build brand and across this fast-growing channel.
traditional ways of doing business
communication strategies by and creating new avenues and
identifying the right passion points opportunities for brands and Consumer
and tapping the right emotional consumers to interact. Engagement Services
chords of our consumers.
The Consumer Care team remains
A growing percentage of our
The team helped the brands optimise pivotal in building trust in Nestl and
advertising and marketing spend
spends across various touch points its products through our 24/7 toll free
is dedicated to digital platforms.
and mediums enabling them to Nestl NAATA hotline.
We are leveraging Facebook,
invest the savings back into the Twitter, Instagram and other
business through the first ever We at Nestl believe that every
channels in innovative ways to
Marketing Mix Modelling Study. contact is an opportunity for the
produce compelling content, drive
company and the brand to speak to
engagement and bolster brand
The team is driven to push forward the its customers that helps build long-
Nestl Creative Excellence Imperative term relationship with them.
i.e. challenging our creatives, avoiding Our increased investment in digital
playing it safe, moving away from is creating unique opportunities for
mediocrity and continuously striving two-way dialogue with consumers.
for ultimate creative excellence while For instance, through Nestl
ensuring consumer-centricity in Kitchen, we engaged consumers
everything we do. online to co-create innovative and
healthy recipes and content.

Nestl Pakistan Limited 49

50 Management Report 2015
Nutrition, Health and Wellness

Nestl places high priority on

Nestl enhances peoples providing consumers with
lives by offering tastier information on how to make
and healthier food and informed dietary choices.

beverage choices at all We have introduced worldwide,

stages of life. the Nutritional Compass to guide
consumers on the path to NHW.
As part of building trust in Nestl
corporate and product brands, we
are expanding the use of the Nestl
Nutritional Compass to include a
QR (quick reference) code to give
consumers a gateway to useful,
fact-based information, Beyond the
Label through their mobile devices.

As a responsible organisation, Nestl

has also voluntarily started Guideline
Daily Amount (GDA) implementation
on all products to provide consumer
information on the percentage of
daily calories and other important
nutrients that they will ingest, when
they consume our products.

Nestl Pakistan Limited 51

Ambient Dairy


NESTL MILKPAK, the safety and The modern woman of today is CREAM
quality leader brand in the UHT milk leading an increasingly demanding Cream is a part of staple diet in
category, comes with a proprietary lifestyle. On such a fast-paced the northern areas of Pakistan and
4 Steps to Safe Milk guarantee. journey, she can easily forget Afghanistan. NESTL MILKPAK
Throughout its value chain, the safety about her own well-being. NESTL CREAM promotes strong traditional
and quality are ensured, not only NESVITA Calcium Plus is educating family values that are a rich part of
with several steps of product quality young women on the importance of the ethnic consumers lifestyle. The
checks but also with tight controls daily Calcium intake and that they brand is the leading player in both
over animal health and feed as well need a strong body to overcome urban and ethnic markets. It offers
as the largest self-collection setup the challenges and pressures on the a strong heritage, consistent quality
in Pakistan. Only the best quality way to fulfill their ambitions. The and taste, enhancing our traditional
milk collected from around 150,000 brand strives to inspire and empower family bonds by becoming an ideal
farmers across Pakistan earns the urban females by mentoring them companion to cherish each moment.
quality seal of NESTL MILKPAK. to pursue ambitions of their choice, In the modern households of
Together with the promise of safety while taking care of their bones. Not Pakistan, NESTL MILKPAK CREAM
and quality, the brands rich heritage just high in Calcium, it also has a is committed to bring busy families
and unbeaten taste provide the proprietary formula that helps lock back to the dining table around the
consumer with an age old promise of Calcium in their bones. And with most delicious, yet healthy creations
pure goodness for the entire family. less than 1% fat, NESTL NESVITA of dishes and desserts.
supports consumers to live an active
and healthy life, so that they are not
held back.

52 Management Report 2015

FORTIGROW More than one-third children in
When it comes to your child, there Pakistan under the age of 5 (Source:
are no second chances. A mother National Nutrition Survey 2011)
wants to impact her childs growth suffer from iron deficiency which can
and development in all the right hold them back in their important
ways for a happy and successful life. formative years. NESTL BUNYAD,
Backed by Nestls global experience with its proposition of affordability
of 150 years in child nutrition, and iron fortification, has embarked
NESTL NIDO FORTIGROW is the on a long- term mission to help
brand that understands a mothers eradicate iron deficiency from every
apprehensions and reassures her level of society in Pakistan. NESTL
that her choices are investments in BUNYAD is reaching out to mothers,
her childs growth and development. especially in low-income households,
The Nestl Research Centre in to help them ensure that their
Switzerland has developed NESTL children can achieve the best in life.
NIDO FORTIGROW to meet the
specific needs of school-going
children between 5-12 years of
provides a special combination of
24 vitamins and minerals to support
optimum physical and mental growth
of young children, so that they can
be successful inside and outside the

Nestl Pakistan Limited 53

Ambient Dairy

Nestl is the global leader in coffee and tea enhancement.

Be it in powder or liquid form, NESTL EVERYDAY delivers
superior KHAAS taste to tea.

Tea drinking is an integral part of everyday life in the Pakistani culture and so
when it comes to tea its about NESTL EVERYDAY. Strongly established as
a specialised tea creamer, today NESTL EVERYDAY has not only become
the heart of tea, but also found its way into the heart of tea lovers across
Pakistan. EVERYDAYs KHAAS promise is about the taste of tea as well
as about the personality of the tea maker who only accepts distinction and
highest consistent quality. With a wide portfolio ranging from sachets to large
pouches to liquid format, it does not matter if the tea being prepared is mixed
or separate: NESTL EVERYDAY guarantees a perfect cup of tea.

54 Management Report 2015

Chilled Dairy


YOGURT SWEET Raita is a popular Pakistani ACTIPLUS MILKPAK
condiment made with
n TASTY yogurt that is used as an
NESTL YOGURT antidote to spicy food. Consumer understanding The Pakistani yogurt market
SWEET n TASTY was NESTL ZEERA RAITA shows that around one is dominated by loose
launched in 2000. It soon was launched in 2004 to in six women suffer from yogurt, primarily due to its
established itself as the target the meal component digestive problems such all-purpose usage. However,
market leader due to its segment of yogurt as constipation. Although the progressive consumer
consistent delicious taste, consumption, and became yogurt is commonly has always been concerned
nutritional goodness and an instant favourite of associated with digestive about safety and health of
guaranteed hygiene, Pakistani cuisine lovers. Due benefits, there was a gap in her family. This provided
backed by Nestls promise to its growing popularity and the market for with an opportunity to offer
of quality. It is Nestls demand, another variant, a yogurt positioned specially the consumers an ideal
flagship brand in the NESTL PODINA RAITA on healthy digestion. solution, leveraging on the
packaged yogurt category was launched in 2006. trust and quality associated
due to its strong winning Over the years, NESTL To fill this gap for with the MILKPAK Brand.
position in consumer RAITAS have evolved consumers, NESTL
taste tests against all from a growing brand ACTIPLUS YOGURT NESTL MILKPAK YOGURT
major competition. It soon into an established one was launched in 2012. It was launched in 2013 as the
established itself as the within the Chilled Dairy contains fibre and a unique hygienic alternative to loose
market leader due to its portfolio. NESTL RAITAS strain of a probiotic yogurt, and has quickly
consistent delicious taste, provide all the innate from the Lactobacillus gained popularity as such.
nutritional goodness and goodness of yogurt with Acidophilus familywhich Hygienically packed NESTL
guaranteed hygiene, backed zeera (cumin) and podina helps improve digestive MILKPAK YOGURT is also
by Nestls promise of (mint) a delicious meal health. NESTL ACTIPLUS low in fat and contains
quality. accompaniment, which YOGURT is also low in fat, the goodness of calcium.
tastes just like homemade making it the ideal food Consumers now have one
Whenever mealtime seems raita. choice for a fit and healthy less reason to worry about
incomplete, the delicious lifestyle. when it comes to the safety
NESTL YOGURT SWEET Without the hassle of and health of their loved
n TASTY lightens up the preparation and worrying ones.
dining table and brings a about quality, consumers
smile to everyones face. can be assured that the raita
Its available in a 400g they are having is of the
pack, for those special best quality from Nestl.
moments together, and a
single serve 200g pack for
those individual moments of
healthy pleasure.

Nestl Pakistan Limited 55

Nestl Juices, Nectars and Drinks


NESTL FRUITA VITALS is the mainstream range for young
brand of choice within the premium enthusiastic teenagers. Be it school,
juice, nectars and drinks category college or university, a mundane day
for young adults. NESTL FRUITA or a tiring evening, NESFRUTA is by
VITALS offers the promise of your side. It stands for the ideal of
superior quality with high quality NEWISM which encourages young
fruits sourced from around the world. teenagers to bring newness in
everything they do by adding their
Apart from great taste, our entire own creative unique twist!
range is now Calorie Smart which
means less than 100 calories per
serving making it perfect for a
healthy lifestyle.

In the spirit of innovation and

bringing excitement to the category
at the start of the season NESTL
FRUITA VITALS launched its newest
variant Kinnow. The new flavour
has got a great response from
connoisseurs of Kinnow all across
Pakistan and promises to be one of
our leading flavours.

56 Management Report 2015


NESTL MILO, due to its unique NESTL MILO contains PROTO- NESTL MILO, being a strong patron
choco-malt taste and strong MALT, a special malt extract made of sports, is popular both with kids
association with sports, continues from malted barley (Jau). It stands and adults looking for healthy energy
to be a key player in the beverage for the everyday victories that lead to and great taste.
category, delivering on the Healthy lifelong success.
energy to go further platform.

Nestl Pakistan Limited 57

Nestl Waters


FOR HEALTHY Hydration is one of the very few BOTTLED WATER
LIFESTYLE primary needs for human beings BRAND
and as such, is a core component
At Nestl Waters, we believe that of human health. On top of being NESTL PURE LIFE is the worlds
what you drink is just as important the major constituent of our body number one bottled water brand
as what you eat. Lets not forget that and of all vital organs, water with presence in over 40 countries.
the first step towards good health is indispensable for many key Pakistan is the proud birth place of
is a healthy lifestyle. As water is functions, such as cell life, chemical this global healthy hydration brand
the essential element for life, we and metabolic reactions, nutrients where it was launched in 1998
think that it deserves extra special transportation, body temperature and continues to be the favourite
attention. regulation and shock absorption. healthy beverage option for Pakistani

58 Management Report 2015

Nestl Coffee


Our NESCAF 3in1 proposition NESCAF CLASSIC, pure soluble GUSTO
plays the role of induction SKU for coffee in jars, offers convenience, NESCAF DOLCE GUSTO is a
new users to the category. Taste economy and versatility in modern day style statement for
and method of preparation are a preparation for the regular coffee coffee lovers who wish to enjoy caf-
key barrier to coffee usage for most user. style beverages in the comfort of
coffee trialists. The product taste their home.
profile has been tailored to suit the This year, we have decided to win
Pakistani palate; with a rich and in the Pure Soluble coffee segment NESCAF DOLCE GUSTO prepares a
frothy mouthfeel while the 3in1 and through competitive pricing variety of coffee drinks from layered
format offers ease of preparation and strong focus on gaining in-store lattes, to frothy cappuccinos, bold
and helps new users experience the share of shelf. The RED Mug promo espressos and tempting chocolate
same perfect cup, every time. on 100 gms, helped us differentiate drinks. Two types of machines have
our offering on shelf, gain shoppers been made available in the Pakistani
from parallel imports and upgraded market: Coffee drop inspired, the
existing 50 gms users. sleek NESCAF DOLCE GUSTO
Drop and the fun and charming
On digital, NESCAF Pakistan now NESCAF DOLCE GUSTO Mini-Me.
boasts the biggest Facebook fan Both machine systems operate at
base amongst all Nestl Pakistan a 15 bar pressure and along with
brands and is also part of the top smartly designed flavour pods
three global NESCAF pages in produce the perfect cup of coffee.
terms of engagement rates. We
also expanded our digital presence
to Twitter and Instagram. One of
the key digital activations have been
the NESCAF Basement talent
hunt. Inspiring stories of different
NESCAF Basement band members
and sneak peeks have generated
a lot of conversations amongst our
younger consumer base.

Nestl Pakistan Limited 59

Breakfast Cereals

Nestl Breakfast Cereals provide you and your family with wholesome breakfast nutrition.
They are convenient, tasty and a nutritious way to start your (and your familys) day. All
of our cereals are made with whole grains, which keep all the parts of the grain intact,
retaining its natural content of fibre, vitamins and minerals.

Kids Range: All Family Range: Adult Weight

flagship brand in the kids range. It nutritious cereal made with whole NESTL FITNESSE is a low-fat whole
takes kids on the ultimate chocolate grain corn and is fortified with wheat cereal which facilitates you
vitamins and minerals. in making your lifestyle healthier.
NESTL MILO CEREAL is a It helps you manage your weight
nutritious breakfast cereal. With its and keep it off as it is made with
great taste, it gives the energy and delicious whole grain flakes and
confidence to succeed in life. contains essential vitamins and

60 Management Report 2015


MAGGI protein. With constant innovation With the promise of taste and health,
to enhance taste and introduce the recipes have been improved to
MAGGI, the pioneer in instant new exciting flavours, MAGGI is a make the products tastier and also
noodles in Pakistan, has been favourite brand among children of healthier by reducing sodium content
delighting the Pakistani taste palate all ages. Even young adults cannot in compliance with the Nestl
for more than 20 years. MAGGI resist its irresistible taste. Nutrition Foundation Guidelines.
stands for Taste Bhi, Health Bhi
and gives a great tasting snacking MAGGI is proud to be the part of the
option to the mothers for their kids everyday lives of millions of kids in
with the added advantage of iron and Pakistan and the trusted choice of

Nestl Pakistan Limited 61

Infant Nutrition

NESTL CERELAC - Nourishing Generations!

With its long history in Pakistan, NESTL CERELAC is now with its second generation of users and is a household name,
trusted by mothers and endorsed by doctors.

NESTL CERELAC was introduced in Pakistan in 1992, positioning itself as the First step to solid food. Over time it
has come to be perceived as the trusted partner of the Pakistani mother. With the passage of time the brand has built its
reputation as the complete food that offers Big nutrition for small tummies.

NESTL CERELAC understands that each stage of a babys growth is different and their nutritional needs evolve as they
grow. Accordingly, NESTL CERELAC infant cereals are grouped into stages according to the changing nutritional needs
of a growing child, providing the right nutrition at each stage.

NESTL CERELAC recipe has been recently renovated with IRON+, and now NESTL CERELAC helps in cognitive
development of babies after 6 months along with helping in healthy physical growth. Its an exhilarating time to be part of
the NESTL CERELAC family. The brand has its eyes set on new heights and extraordinary achievements in the coming

62 Management Report 2015

Infant Formulae & NESTL NIDO 1+ is a growing-up Nestl Nutrition
milk (not to be used as breast milk
Growing-Up Milks* substitute) extending the benefit of
Nestl continued to offer the gut protection to children from 1 year The Nestl Nutrition Institute (NNI)
most scientifically advanced infant of age because of unique renovated is a not-for-profit organisation
formulae and growing up milks recipe. While NESTL NIDO 3+ is that fosters Science for Better
formulation. NESTL LACTOGEN is helping to ensure healthy growth and Nutrition. NNI continued its
the flagship brand of Infant Formula development from 3 year onwards. contribution to enhance the
for Nestl Pakistan. NESTL NAN is quality of peoples lives by sharing
another infant formula, also having *Breast milk is best for babies. leading science- based unbranded
a growing-up milk NESTL NAN Nestl promotes mothers milk information and education material,
3 in the portfolio to extend the in all its communication to with healthcare professionals only.
benefits to children over one year Health Care Professionals (HCPs), In this context, scientific symposia
of age. Pediatric specialties range infant formula and CERERLAC were conducted on multiple topics
comprising of formulations including packaging and all other related with health care professionals
NESTL AL110, NESTL PRE-NAN material. Nestl also strictly nationwide.
and NESTL LACTOGEN RECOVER follows the local code as well as
continue to provide nutritional international code for protection
solution to infants with specific of breastfeeding and marketing of
nutritional requirements. infant formulae. This document is
part of company information only
and may be viewed accordingly.

Nestl Pakistan Limited 63

Nestl Professional

developing win-win partnerships Food:

with our OOH operators by
ensuring convenient and consistent Under the food portfolio, Nestl
supply of innovative products and Professional offers both ambient and
solutions that meet our customers chilled dairy products that serve the
requirements. requirements of the customers.
Nestl Professional aspires to be an
inspiring growth partner for its Out of The key contributing factor to this Beverages:
Home (OOH) operators and strives to astounding success was the focus Under beverages, Nestl
deliver creative Food and Beverage on driving innovation, accelerating Professional offers solutions and
Solutions with the convenience of the solution business, driving standard products that are required
free doorstep delivery to fulfill our numeric and geographic reach, and by the food service operators.
customers business needs. improving the channel focus.

Our success as a business rests Nestl Professionals product

on building customer intimacy and portfolio is segmented into two
major categories:

64 Management Report 2015

Nestl Pakistan Limited
308 Upper Mall, Lahore Pakistan
Tel: +92 42 111 637 853
Fax: +92 42 35789303 Nestl.pk