Analysis of Nestle

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nestle XAVIER INSTITUTE OF MANAGEMENT & eNTREPRENEURSHIP| PGDM-16
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Cost & Management accounting assignment|
A study of Nestle India Ltd.|
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GEORGE ATTOKARAN -35
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JAMI RAM BABU -40
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JENKIN J S -42
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JNANASHANKAR.H -43
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KALYANA SUDHAKAR.A -45
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MANIVEL.K -56

Pondering in to the cost-accounting, product costing, supply chain management & distribution system of Nestle India ltd.|

Table of Contents
INTRODUCTION3
Major player in processed foods3
PRODUCTION SYSTEM4
SUPPLY CHAIN MANAGEMENT4
How does NESTLE implemented SCM?4
Thrust on supply chain4
Nestle relationship with its suppliers4
Supplier requirements to do business with Nestle5
NESTLE DISTRIBUTION CHANNEL:6
ACCOUNTING CONVENTIONS AT NESTLE INDIA7
COST ACCOUNTING FIGURES AT NESTLE INDIA FOR THE YEAR 200810
PRODUCT COSTING12
REFERENCES:15

INTRODUCTION
Nestle India Ltd. is a part of the Nestle SA group which is one of the largest manufacturing companies in the world. Henri Nestle founded the company (with its headquarters in Vevey, Switzerland) in 1867. Nestle has two major divisions - Le Societe des Produits which looks after the production and marketing and Nestec Ltd. which provides the technical assistance to the group companies. Since its inception in 1867, the company has diversified its product range from the infant weaning formula (which was its first product) to beverages, confectionery, ice creams and pet foods among others. In a span of 130 years the company has ranked 26th among the world’s largest corporations and boasts of a turnover of $48932.5 million and employee strength of 221,144 people spread over 75 countries worldwide.

Nestlé’s relationship with India started 1912, when it began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After independence, Nestle formed a company in India, namely Nestle India Ltd, and set up its first factory in 1961 at Moga, Punjab. The first product to be manufactured was Milkmaid. Nestle is the third largest food industry in India. The Nestlé’s plants are located at Moga, Samalkha, Nanjangud, Choladi, Ponda, Bicholim & Pantnagar. Nestle is having a product brands of about 8500.

Major player in processed foods
Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands maintain nutritional balance in a fast pace world, that is why people around the globe choose. The detail of the Nestlé brand is as follows: Baby foods (Nestlé Cerelac, NAN),Breakfast cereals (Nestlé Cereals),Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts, Everyday),Ice-creams (Movenpick, Dreyer’s), Chocolate confectionary (Kit Kat, Smarties, Toffo),Beverages (Nescafe, Milo, Nestlé juices), Food service (Nestlé Jumbo Bottle),Prepared foods (Maggi, Powered Soups),Bottled water ( Nestlé Pure Life, Nestlé Aquarral),Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alpo),Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical surgical Instruments. Nestlé India has over the years built strong brands like MAGGI, NESCAFE, CERELAC, LACTOGEN, KITKAT and POLO. Nestle is major player in many segments of the FMCG sector such as noodles and sauces [MAGGI], instant coffee [NESCAFE] , prepared dishes and cooking aids, milk products[MILKMAID], chocolate [KIT KAT] , confectionery and weaning foods.

PRODUCTION SYSTEM
The form of production that nestle...
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