1. The story of Nestle:
From nutrition to wellness;
Food is a core element in our daily lives. Not only does it enable us to
survive, but appropriate amounts and quality also help to ensure a
better standard of living by contributing to our health and wellness.
Consumer need and expectations associated with a particular food
product are not fixed, but change with the time and according to
geographic region, culture and the various stages of life. Ever since its
foundation in 1866, Nestle goals have been to keep in step with this
constant process of change. It reacts to new consumer requirements
with innovative and continually renovated products and implements
new scientific finding in tasty foods.
High infant mortality rates, and the lack of suitable replacement foods
for babies for no access to breast milk, were the motivation behind the
Henri Nestlé’s invention of Fraine Lactee. He was also be able to offer
his first product-as an easily digestible and ready-made food-to
convalescent and elderly people, thus laying the foundations of
today’s concept of nutrition.
At the same time, the lack of our fresh milk in European cities
motivated the American Page brother to found Europe first condensed
milk factory in Switzerland in 1866. the two companies Nestle and the
Anglo-Swiss Condensed Milk Co. merged in 1905, uniting not only their
worldwide distribution and production network, but also their milk-
processing expertise. The unique network of research and
development centre, built up over number of decade, facilitated the
development of wide range of specific milk and dietary products, from
preparations enriched with vitamins in the 1930s through today’s
probiotic food.
Backed up by the best possible product quality and food safety
standards, nestle promotes consumer health and wellbeing while at
the same time adhering to regional traditions with regards to taste and
pleasure.
When it comes to taste and pleasure, many consumers think first and
foremost of the range of chocolate products that has belonged to
Nestle since 1905 and was expanded significantly in 1929 with the
takeover of the Swiss chocolate makers Peter, cailler and kohler, and
in 1988 with the acquisition of row tree (kit Kat, smarties). Originally
chocolate was enjoyed in liquid form, but was primarily a means of
healing illnesses and providing strength. Due to its high nutritional
value, it has also been used for a long time as a popular snack for all
kids of leisure activities. The expansion of our activities into the area

2. of Performance nutrition with the takeover of Power Bar in 2000
follows this trend.
Julius Maggo can undoubtedly be viewed as a pioneer in the creation
of convenience foods, offered worker’s families a protein-rich,
affordable and quickly prepared food in the form of his vegetable soup
in 1884. Following the acquisition of Maggi in 1947, pre-served and
frozen foods and Italian cuisine supplemented Nestlé’s product range
in this area. With the expansion of the Food Services division and the
takeover of chef America in 2002. Nestle acknowledged the growing
trend for eating out-of-home.
In additional with product lines with specific nutritional characteristics
(less salts, fewer claries, etc.) are aimed at helping young and elderly
health conscious consumers to achieve their individual nutritional
goals. Nestle home care provides outpatients In certain countries
with specific high nutrition faces and nutrition related services.
Nestlé’s development from a straight forward food manufacturer to a
wellness company is also highlighted by changes in the beverages
division. In the last decade in particular, Nestle has expanded its
traditionally broad and successful range of nutritional and flavored
drinks (Milo 1934, Nescafe 1938, Nestea 1944, Nesquik 1948,
Nespresso 1986) with both sparkling and non-sparkling mineral water
(Vittel 1969, Perrier 1992, Nestlé’s Pure Life 1998, Nestlé’s Aquarel
2000).
Fraine Lactee for infants and convalescent and elderly persons.
Pets contribute to the wllbeing of many people. With the acquisition of
Carnation in 1985, we entered the pet food business, becoming a joint
venture leader via merger with Spillers (1989) and Purina (2001).
Since 1974, Nestle has also helps an indirect participation in L’Oreal.
Following the 1989 joint venture, Galderma, in dermatology, the 2002
joint venture, “Laboratories Inneov”, combined the competencies of
Nestle In nutrition research with those of L’Oreal in cosmetics. This
creates access to a further dimension of nutrition, that of promotion
beauty and wellness via specific nutritional supplements.
The success of the 1977 move into the pharmaceuticals industry with
the takeover of Alcon was highlighted with the partial IPO (around
25%) in 2002.
With the objectives of ensuring optimal nutrition Nestle take into the
account consumer’s increasing expectations with regards to food, it
also makes the contribution to good health and illness prevention that
extend above and beyond traditional concerns of sustenance, pleasure
and convenience.

3. With over a hundred years of experience, we know that the trust of
our consumers is based on the quality and safety of our products. We
also know that we continue to deserve this trust.
About Nestle Milkpak Ltd.
Nestle Milkpak Ltd is a food processing company, which is registered
on the Karachi and Lahore stock exchanges.
Headquarter in Lahore, the company operates five production facilities.
Two of its factories in Sheikhupura and Kabirwala are multi product
factories, while another one at Karachi is ready for production. One
factory in Islamabad and two in Karachi produce bottled water.
Through is effective marketing and a vast sales and distribution
network throughout the country, it ensures that its products are made
available to consumers whenever, wherever and however.
Nestle Milkpak is a subsidiary of Nestle S.A. a company of Swiss origin
headquartered in Vevey, Switzerland.
Nestle has the unique ability to provide a complete range of food
products, services and well-known brands to meet the needs of
consumers around the world. It is not faceless consumers, but a
human company providing a response to individuals needs. It respects
the culture of the countries it operates in and recognized the need for
quality of life of their people.
In line with Nestlé’s global philosophy, Nestle Milkpak is proud of its
commitment to excellence in product safety and quality and to
providing value and services to its consumers. On the social front it
acts very responsibly when it comes to environmentally sound
business practices and corporate social responsibility.
Nestle Milkpak operates in many ways but people, products and
brands are the main flag bearers of the Company’s image.
Nestle has been collecting milk worldwide for the past 100 years,
which is used for processing as well as producing milk-based
products. To promote sustainable milk business by the formers, Nestle
Head Office in Switzerland and extend assistance through a variety of
programs under taken by the country operations, whish focus on
technical improvement and better dairy practices.
For Nestle Milkpak, milk is the core raw material for the production of
UHT and powder milk and other milk-based products. Ever since the
company commenced operations in Pakistan, its prime concerns have
been to improve the quality and volume of its raw milk. Driven by its
commitment to the quality of its products and given the limitations of
the quality land quantity of raw milk available from outside sources,

4. the company opted for self-collection. Consequently, a self-collection
program was initiated in 1988.
Despite difficult odds, the company has succeeded in creating an
extensive milk collection network that almost eliminated its reliance of
third party suppliers. It now collect very high quality directly from
over130,000 farmers on a daily bases an area of over 70,000 Sq. Km,
in Punjab and pays nearly four billion rupees to farmers towards milk
purchases.
The basis unit of Nestle Milkpak milk collection system is the village
milk collection centre (VMC). Farmers brings their milk to these 1000
VMCs morning and evening from where it is transported to sub- for
mechanical chilling and then to main centre from where it is
transported to the factories.
Nestle Milkpak achieved its milk collection objectives by entering into a
strategic and mutually beneficial partnership with the farmers. Which
has focuses on increased milk production and livestock development?
Towards making this partnership a success. Nestle Milkpak established
an Extension Services, staffing it with veterinary doctors, which has
rendered very valuable services to farmers. It provides them an
advisory service on ways to improve milk quality and output, create
awareness about good animal husbandry pact ices, provide free
diagnosis and advises treatment of their livestock and undertakes
vaccination at cost. It also provides them high yield seeds and
molasses at cost. Besides, it encourages and supports progressive
farmers by way of technical assistance and form designs.
To help in breed improvement, the company assists in the operations
of an NGO that undertakes artificial insemination and training of
village inseminators.
Nestle highly values this relationship with farmers as this is a win-win
situation for both. On the one hand, it assures a regular income for
farmers and on the other hand it enables the company to collect better
quality milk.
Production
Sheikhupura Factory
This production facility under the name of Milkpak ltd. At Sheikhupura
commenced operations in 1981 as a producer of UHT milk. By 1988 it
had expanded its operation to produce butter, cream, desi ghee all
under the brand name of Milkpak and fruit drinks under the product
name FROST.

5. After Nestle S.A Switzerland took a major participation in Milkpak ltd.
In 1988, the Milkpak factory at Sheikhupura became a part of the joint
venture under the name of Nestle Milkpak ltd.
Soon afterwards in 1990 the milk powder plant was established to
produce powder milk (NIDO). This was followed in subsequent years
by the installation of production lines of infant cereals ( CERELAC)
infant formulae (LACTOGENS), tea withener (EVERYDAY), Chocolate
drink powder ( MILO) growing milk ( NESLAC), ready to drink
chocolate drink, (MILO RTD), Sugar confectionery ( POLO MINT), Fruit
Drink (FROST), Juices (ORANGE, APPLE, PINE APPLE, MANGO), coffee
(NESCAFE), Flexible confectionery line (TOFFO and SOOTHERS), Bottle
water ( NESTLE PURE LIFE), Plain and fruit yogurt. Specialized infant
formulae (NAN 1 & 2).
During these years a variety of variants of different products were also
introduce as a part of expansion of product portfolio.
To meet the increasing demand of milk products in 2004 new milk
tanker reception bay was installed. Additional milk processing and
filling equipments was installed including a TAB22 Filter, TWA 125 and
TWA 200 Filters. This is the most modern, efficient and high speed
equipment available in the dairy industry. To support these additional
investments were made in the industrial services e.g. ice water and
compressed air.
To meet the needs of safe storage for the ever expanding product
range their increasing volumes, National Distribution Center (NDC)
was constructed in 2000. Spread over 6614 square meters, it can
store up to 8300 pallets, approximately 8000 tons.
Kabirwala Factory.
Nestle Milkpak acquired the factory in 1990 as a subsidiary and
subsequent to its merger with Nestle Milkpak in April 1997 it became a
fully owned unit of Nestle Milkpak Ltd.
A magi Noodles plant was installed in 1992, followed by a milk powder
plant for NIDO and Gloria whose capacity was subsequently increased
several Times. Then came a new butter line production bulk and
cultured butter. A dry mix line was installed for tea whitener powder
(EVERYDAY) and the milk powder plant was modified to produce NIDO
enriched with vitamins and minerals. The Desi Ghee plant was
relocated from Sheikhupura factory and its capacity was doubled.

6. A National Distribution Center and an Occupational Health Center were
established and a sew incinerator plant was acommissioned with a
scrap yard for proper water disposal.
Quality Assurance.
Nestle commitments to product quality remains the corners stone of
its businesses philosophy. In Pakistan too the company has all along
been committed to achieving the highest quality of its products. As a
part of this effort, in 1993 the company embarked upon “Farm to
table” quality concept. The guarantee about the quality of Nestle
Products up to the time of consumption by the consumer. We expect
this concept to result in our product becoming the product of choice for
our consumers.
CORPORATE SOCIAL RESPONSIBILITIES:
Nestle Milk Pak has put in a place well-defined policy on Corporate Social
Responsibility that covers Social action Programs, Promotion of Sports and Culture,
Cause Related Marketing and Environment. The policy is aimed at ensuring that the
Company meets its obligation to the society.
SOCIAL ACTION PROGRAMS:
The social action programs focused on child and mother issues, Donation to needy
communities, rural support programs and educational support for underprivileged
students.
1. CHILD AND MOTHER ISSUES
The company arranges milk programs for undernourished and sick children and
mothers through several NGO’s and charitable organization. It also supports such
organization such as APWA to participate in international seminars on child issues.
2. DONATION:
The company assist through donations such hospitals and organizations that provide
services to the poor and respond to distress calls by the govt and NGS’s, for assistance to
victims of floods, earthquakes , drought and other natural climatic conditions .
3. RURAL SUPPORT PROGRAMS.
To help alleviate the suffering of rural populations who do not have easy access to
potable water, the company has initiated a tube well and hand pumping installation
scheme in selected areas, first tube well was completed in 2002 in Chak 343 WB, a
villaige of about 3000 inhabitant in tehsil Dunyapur, disst khaniwal, for the inhabitance
of desert areas of cholistan, a program of installation 115 hand pumps comes in
underway.
The milk collection and agri-services Department of the company provides free and
extensive advisory and support service to mil farmers by educating and training them in

7. good animal husbandry practices helping in vaccination and treatment of their milch
animals facilitating purchases of feed supplements and fodder seeds and helping in breed
improvement .This translates into increased milk production and consequently, a better
income for the farmers.
4. EDUCATINAL SUPPORT UNDER PRIVILEGED STUDENTS.
The company donates computers to school for disadvantage children run by
NGOs and charitable organizations to enable these children from modern technology.
The company donates to support the spread of education in the rural areas, it undertakes
refurbishment, program of govt, operated to primary and middle schools, in partnership
with NGO’s that specialize in education, the company has recently, embarked on the
program of a school adoption to improve educational facilities and enhance the quality of
education, these measures are likely to result in the increase of school attendance by
about 50%.
5. SPORTS AND CULTURE:-
The company regularly sponsors sports and cultural events. Such as the
international polo tournament and SAF games n the recent past.
6. ENVIROMENT:-
For Nestle, respect and responsibility for the environment are a part of its
border commitment to sustainable development. Sustainable development requires and
integrated approach to policy and decision making, in which long term economic growth
environmental protection and social achievements are not incompatible but are
complimentary and mutually dependant.
Nestle record of environmental activities can be traced back over several decades. With
many effective measures put in place. The policy was updated in 1999, confirming and
strengthening the company’s commitment to the environmentally sound businesses.
In line with Nestle global commitment, Nestle milk pack in Pakistan is equally dedicated
today its role in helping to protect environment, this is done in number of ways.
• Compliance with local laws.
The company fully complies environmental act/regulation 1997.
• Raw Material:
Agricultural raw materials provides the basis to the companies, finish
product and therefore are center to it’s operations.. Although not involved in raw material
production, the company supports sustainable agricultural and dairy forming practices,
including, environmental protection.
• Manufacturing Processes:
It is a very important part of the supply chain. In our factories, the
objectives are to maximize the production of goods. At the same time, minimizing of
consumption of resources and reduction in wastes and emission. The factories are
equipped with complete testing and monitoring facilities for waste and air emission
enable them to stringently monitor the gaseous environment and ensure that these are in
accordance with the environmental standards (NECS).Additional measures are:
 Reduction of gas emission:
To eliminate air pollution, the factories have switched over from the use of
heavy fuel oil to natural gas, as gas burns cleaner. This has drastically
reduced carbon dioxide into atmosphere to well below the legal limits. At

8. the same time a strict maintenance program of fuel consuming equipment
followed.
 Waste Water Treatment:
To prevent wastewater from polluting the environment factories in
Sheikhupura and Kabirwala operate an elaborate water treatment system.
 Water Generation:
Steps are continuously taken to reduce raw material water consumption for
cleaning and other operations. This positively impacts the efficiency of
our wastewater treatment plant, of which the SCD & COD is monitored
 Packaging:
There has been an increased focus on packaging and its environment
impact on packaging. Nestle supports an integrated approach that favors
source reduction, reuse, recycling and energy recovery to minimize the
impact of packaging on the environment. To achieve reduction of
packaging material without jeopardizing the safety and quality of the
products, packaging solutions are regularly developed leading to lowest
possible weight & volume while at the same time allowing its recycling.
Care is also taken to avoid the use of substances that may adversely
impact the environment during packaging production and disposal. The
engineering & production departments are encouraged to improve the
performance of packaging machines and supplies are challenged to
improve the quality of material.
 Packaging Waste Recovery:
No content with packaging and recycling the company operates a
collection, separation and recovery system of used packaging. Through a
solid waste management program, solid waste is collected and segregated
at source and then reused, recycled or disposed off in an environmentally
friendly way. Incinerators at Sheikhupura and Kabirwala factories are used
to incinerate material that can’t be recycled and dumped. Run on natural
gas these incinerators cause no pollution and convert material waste into
ash that is safer and easier to dispose off. Waste of Tetra paper that was
initially incinerated at site a waste handling company.
 Environmental Management:
Factory managers assisted by environmental committees, Management
environmental issues and their performance is regularly audited by the
Corporation Technical Management. Environmental impact assessment is
done in advance for every new project and mitigation measures are
adopted to minimize adverse impacts on environment.
 Training:
Training to create awareness about environmentally safe practices forms
an important part of the company’s environment management system.
Accordingly all employees undergo environmental training through
common issue training sessions followed by an Environment Week once a
year.