Author

Fahad Manzoor

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2013

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

The processed milk industry is growing at an unexpected rate and Nestle combined with Haleeb is not able to fulfill the demand. 95% of the market is still untapped and there lies huge potentials for current and upcoming players. Nestle is almost done with its production capacity and should setup new plants to fulfill the demand. If they don t setup a plant in the near future then there is a very good chance that they would start losing the market share to Haleeb and new entrants. Nestle is a multinational and has a huge backing up of its mother company. It is present in many, other categories of food industry which generates a good percentage of the profits that company) investment currently would be very much appropriate.

With additional plant Nestle has to invest a lot in its milk collection system that is mainly dominated by the gawallas at the moment. They should invest in the breeding and feeding of cows and buffalos to increase the production rate of milk at least of the farms from which they procure milk for processing. This way they would be able to reduce the cost of raw milk and also fulfill the growing demands. This would also create a trust relationship in between the company and the farmers who won’t later give milk to other competitors at higher prices, which for Nestle is a major issue when they talk about raw material cost and EBITA. With new plant Nekle would be in a position to export processed milk to countries world ovei There lies a lot of demand in countries like Russia. .Tanan. and China etc

Pages

39

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