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HISTORY

In 1860s Henri Nestlé, a pharmacist, developed a food for babies. People quickly
recognized the value of the new product, and soon, Farine Lactée Henri Nestlé was
being sold in much of Europe.

By the early 1900, the company was operating factories in the United States, Britain,
Germany and Spain. World War I created new demand for dairy products in the form
of government contracts. By the end of the war, Nestlé's production got more than
doubled. In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company.

In 1920 Nestlé's expanded its operation by entering into new products, with chocolate
the Company's second most important activity.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired.

In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell
followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973).
Diversification came with a shareholding in L·Oreal in 1974.

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and
world markets developed into more or less integrated trading areas.

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As a consequence of joint venture arrangement between Nestle S.A. of Switzerland and
Milkpak Ltd. in 1988, the existing production facility of Milkpak in Sheikhupura
became a part of Nestle Milkpak.

The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT

milk. By 1988, it had expanded its operation and was also producing butter, cream,
desighee - all under the brand name of MILKPAK and juice drinks under the brand
name FROST.

To meet the demands of the large food market that Pakistan offered, Nestle Milkpak
reorganized and reinforced the production of existing brands and gave shape to new
production lines. The first to come was a milk powder plant, which not only began
producing NIDO in 1990 but was also critical to the production of several milk-based
products in the future.

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In 1998 a substantial capital investment was made to launch several products and install
two new state-of-the-art technologies.

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In particular, NESTLE envision to:

Ô Lead a dynamic motivated and professional workforce ² proud of its heritage

and bullish about the future.

Ô Meet the nutritional needs of consumers of all age groups ² from infancy to old
age, from nutrition to pleasure, through an innovative portfolio of branded food
and beverage products of the highest quality.

Ô Deliver shareholder value through profitable long-term growth, while

continuing to play a significant and responsible role in the social, economic and
environmental sectors of the country.

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 Ô Nestle brands are the preferred choice in their categories. Consumer insight
drives all aspects of our marketing and communication efforts.

Ô Nestle communications to the consumer are relevant, cutting-edge, and adhere to

the highest standards of responsible communication.


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The strategic priorities of Nestle Pak Ltd are focused on delivering shareholder value
through the achievement of sustainable, capital efficient and profitable long term
growth. Improvements in profitability will be achieved while respecting quality and
safety standards at all times.

In line with this objective, Nestle Pak Ltd envisions to grow in the shortest possible time
into the number one food company in Pakistan with the unique ability to meet the
needs of consumers of every age group - from infancy to old age, for nutrition and
pleasure, through development of a large variety of food categories of the highest
quality.

Nestle Pak Ltd envisions the company to develop an extremely motivated and
professionally trained work force, which would drive growth through innovation and
renovation.

It aspires, as a respected corporate citizen, to continue playing a significant role in the

social and environmental sectors of the country.

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In Nestle salaries are decided by market surveys. For surveys Nestle has hired a
company named MERCER it·s a global consultant company, which conducts surveys
for Nestle to fulfill this particular purpose. They never consider time on job of an
employee for promotion. Employees are promoted there according to their
performance.

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Deductions from salary in Nestle are:
Ô Income Tax
Ô EOBI
Ô Provident fund
Provident fund is deducted from the salaries of the permanent employees, in case
their job·s duration exceeds one year. Provident fund is deducted from
employee·s basic salary.

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The amount of pension fund is also deducted from the salary of the employee.

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Motivation systems are based on individual work performance.

Approaches used in individual incentives are:

Ô  

An increase in pay is usually determined annually. Under a merit pay plan, employees
who receive increases in merit, have a sum of money added to their basic salary.

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Bonuses are paid to the workers (labor class) who save time by working efficiently.

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Commission is paid to employees in case of achieving predetermined targets.



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Group incentive is a motivational plan provided to a group of employees based on the
collective work.

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Plant wide Incentive is a motivational system that rewards all faculty members based
on how well the entire group performs.

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Ô Shift allowance- Where applicable, or where CBA states

Ô ´ehicle Maintenance allowance
Ô Travelling Allowance
Ô Medical allowance; OPD
Ô Disturbance Allowance
Ô Utility Allowance
Ô Cost of Living Allowance


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It is also called personal financial security.

Ô Provident fund
Ô Gratuity
Ô Pension
Ô Insurance; life insurance: Under group life insurance policy as per group
entitlement, Medical Insurance for Self and Family
Ô social Assistance Programs:Car loan facility, motor cycle loan


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An employee also has the facility to get loan against provident fund. In case any
employee avail this facility, his total provident fund·s contribution is calculated and
loan is sanctioned only up to the limit of his contribution.

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An employee is allowed to take the loan, but the limit is up to his one month·s
basic salary. If he has to take loan exceeding the pre-described limit, concerned
head of department and director·s approval are required. Monthly deductions of
loan from the salary are approved by the finance manager and manager accounts.


  
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Ô Fair price Shop
Ô Subsidized meal facility for factories
Ô Subsidized Transportation Facility
Ô Baby feeding scheme

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 Ô Meal subsidy for field staff
Ô Pick and drop service: For factory staff where such facility is available

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If an employee has taken any advance against his salary during the month, the advance
is adjusted at the end of the moth against the salary.

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Non- financial compensation includes:

1. Trophies and awards given to the employees.

2. Marriage gift scheme once in a service
3. Family day gift once in a year
4. Eid gift on both Eids
5. Hajj Balloting: After 5 years service through balloting
6. Scholarship Award Scheme
7. Birthday, Eid and New Year cards given.

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a. Mobile Phone
b. Company maintained Car
c. Fuel (Work Tool)
d. Car Buy Back
e. Club Membership
f. Medical Leave Encashment, Casual Leave Encashment(unionised staff)

g. office furnishing
h. Assigned parking spaces
i. Business card
A  Impressive titles for executives.

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