Case study of Nestle

Case Studies
To create value for our shareholders and our company, we must create
value for people in the countries where we are present. This includes the
farmers who supply us, the employees who work for us, our consumers and
the communities where we work. The following case studies of Nestlé’s
efforts in the areas of nutrition, water, rural development provide an
interactive view of what the concept of shared value looks like in action.

School Rehabilitation and Education

Advancement

School Rehabilitation To help improve education in rural areas, we

undertook the rehabilitation of several primary and middle schools,
focusing especially on schools for girls. In 2004, in partnership with an NGO,
we adopted a school in Pindi Dhallon, Sheikhupura, and achieved such an
improvement of educational facilities, including teaching aids and teacher
training, that school attendance doubled. Three schools were rehabilitated
in 2004-05, and we also donated over 100 computers to schools in poor
rural and urban communities. In the 21st century, no country can hope to
progress without a strong commitment to scientific training and research.
Demonstrating our investment in Pakistan's long-term future, we have
committed to help set up a School of Science and Engineering at the world-
renowned Lahore University of Management Sciences (LUMS).
Well InstallmentsWell and Hand-Pump
Installation Projects

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

Pakistanis. We have helped alleviate rural suffering by undertaking tube-
well and hand pump installation schemes in selected areas. Our first tube-
well was completed in 2002 in a village of 3000 inhabitants in Tehsil
Dunyapur, Khanewal. A second one was commissioned in 2005 near
Chishtian. Since then 300 hand pumps have been installed in the arid
deserts of Thar and Cholistan. Moreover, the residents of villages which
host our milk reception centres know that they can always make use of our
water pumps.

Help Centre for Farmers

Our Milk Collection and Agricultural Services Department provides free

advisory and support service to dairy farmers. We give training in animal
husbandry practices, vaccinate and treat their milch animals, help farmers
buy feed supplements and fodder seeds, and assist in breed improvement.
This translates into increased milk production, better income, and a better
life for farmers.

Healthy Kids Programme

Nestlé Pakistan inaugurated the Pilot Phase of the Nestle Global Healthy
Kids programme on November 1st, 2010 at Lahore. The objective of the
programme in Pakistan is to create an information and educational
programme for raising awareness related to the nutrition, health and
wellness of the school going children from the age group of 6 to 16 years,
through better understanding of nutrition value of food items, importance
of physical activity, healthy lifestyle and other key health measures such as
basic hygiene.

The program, which started in January this year, passed through different
stages like identification of the partner NGO (Care Foundation), selection of
the external nutritionist (Dr. Riffat Aysha), curriculum development, training
of 20 Care Foundation teachers as master trainers Etc. During the pilot
phase, which will continue till March 2011, the master trainers will
disseminate the nutrition information for a better and healthy lifestyle in an
affordable way, to around 2,500 children of two campuses of Care
Foundation schools. We plan to expand the program next year and will
target 25,000 children and half a million children in consequent years.

Earthquake Relief

Earthquake Relief In October 2005, the biggest natural calamity in our

history struck Pakistan. Thousands died and millions were left homeless
after a massive earthquake hit our mountainous northern areas. In step
with the rest of the nation, Nestlé Pakistan responded immediately, putting
its infrastructure and resources to work in the affected areas.

Within two days, we had established a crisis committee under the

supervision of our Managing Director. The same day, the management team
left to visit the affected areas, and by 11 October, the first six Nestlé trucks
left our factories, bearing bottled water, powdered and UHT milk and ready-
to-cook MAGGI noodles. As a result of our swift and carefully planned
action, we were able to distribute 80 trucks of goods, worth Rs 20 million.
Two 10-ton trucks of drinking water were dispatched to Muzaffarabad
Hospital, and our volunteer teams ensured that goods were distributed
fairly and efficiently to those who needed them most.

Among our reconstruction efforts are the following initiatives:

Allocated an amount of Rs 20 million, raised through employee

contributions and grants, to be used to adopt and reconstruct a model
village in Azad Kashmir

Initiated a livestock health improvement programme to help the locals

rebuild their shattered lives

Nestlé SA donated an additional Rs 16 million for reconstruction and

rehabilitation work

Nestlé employees donated Rs 3.3 million from their own salaries

Five teams of staff volunteers worked day and night in the affected areas to
ensure that relief goods got where they were needed

A medical detailing team worked with the students of King Edward Medical
University, Lahore, to collect medicines worth Rs 175,000

Flood Relief

The Nestlé Pakistan team along with the volunteer donations from Nestlé
Switzerland, Nestlé Singapore, our home based expats and associates from
Dubai, and Nestlé Malaysia made a significant contribution for distribution
of 2,400 packs of basic rations (3 weeks subsistence rations to 2,400
families impacting 14,500 people). Each ration pack contained wheat flour,
pulses, tea, sugar, cooking oil, rice, salt, pepper, cooking pot and bed sheet
and costs 24 CHF each. The food support packs were distributed in
extremely remote areas of Southern Punjab and Sindh province at some of
the worst affected areas. Nestlé Pakistan also extends its appreciation and
thanks to Mr. Paul Bulke, CEO and Mr. Fritz Van Dijk, Zone AOA
Management for a very kind Nestlé S.A’s donation of 240,000 CHF for the
ongoing relief and rehabilitation works by Nestlé Pakistan, which also
includes a joint relief operation with Swiss agency for development and
cooperation.