Acknowledgement

It gives me immense pleasure to compile my six months industrial training report after an enlightening experience at Nestle. Its indeed a pleasure being a part of the World’s No. 1 Consumer Goods Company. Firstly I would like to thank God for giving me strength to work to the best of my capabilities and produce satisfactory results.

My sincere gratitude towards the team I worked with, in the CULINARY(MAGGI) department, led by Mr. TAPAN BHATT, I have learned a lot under his guidance.

I shall be failing in my duty if I do not acknowledge the help extended by Mr. Amit Saraf & Vinod Sharma.

I would like acknowledge the warmth affection and co-operation by the operators and workers of Nestle India Ltd.

I would like to thank my family members for supporting me and for continuously motivating me.

TO WHOM IT MAY CONCERN

Mr. Sunil Kumar is the student of Lala Lajpat Rai Institute of Engg. & Technology and he has completed his Industrial Training (from _________________date) in Nestle India Ltd., Moga Factory under my guidance. I have checked this report & the information contained in the report is genuine to my knowledge.

Mr. Amit Sarat(Human Resource, Training Co-ordinator)

INTRODUCTION TO NESTLE

Nestle India is a multinational company with its worldwide operations in over 70 countries. The Founder of Nestle was Henry Nestle who from a modest beginning founded the company in 1866 at Switzerland for manufacturing milk powders for babies. At that time Switzerland faced one of the highest infant morality rates and the milk formula saved the lives of many infants whose mothers were unable to breast feed successfully,

At present Nestle is the world’s largest food company with its international headquarters at Vevey, Switzerland, With almost 500 factories worldwide it employs almost 2,30,000 people.

Nestle is very decentralized in its operations and most of the markets are given considerable autonomy in its operation. It is more of a people and products oriented company rather than systems oriented company. There are “unwritten guidelines” which are to be followed, based on common senses and a strong set of moral principles emphasizing a lot of respect for fellow beings.

Nestle has always adapted to the local conditions and at the same time integrates its Swiss heritage. It has always taken a long term view in the countries in which it operates.

Therefore, one can see a lot of investment, R&D and risk taken in the new product areas. There is a great emphasis placed on training by the company. It believes in rewarding and promoting people from within.

Today its product brand name ‘Nestle’ is associated with ‘quality products’ in worldwide consumer markets.

NESTLE PHILOSOPHY

When Henry Nestle introduced the first commercial infant formula in 1867, he also created a symbol of the Bird’s nest, graphic translation of his name, which personifies the company’s business. The symbol, which is universally understood, evokes security, motherhood, family and tradition. Today it is central element of Nestle’s corporate identity and closely parallels the company’s corporate values and culture.

Historical Development

Year Event1866 Company Founded1905 Merger between Nestle & Anglo Swiss Condensed Milk

Company1929 Merger with Peter-Cailler-Kohler Chocolates Suisses S.A.1947 Merger with Alimentana S.A. (Maggi) 1971 Merger withUrsina-Franck (Switzerland)1985 Acquisition of Carnation (USA)1988 Acquisition of Buitoni-Perugina (Italy)1992 Acquisition of Rowntree (GB)1995 Nestle acquires Victor Schmidt & Sohne, Austria’s oldest

producer of confectionery, including the famous ‘Mozartkugeln’.

1997 Nestle, through the Perrier Vittel Group, expands its mineral water activities with the outright acquisition of San Pellegrinto.

1998 Nestle acquires Spillers Pet Foods of the UK and strengthens positions in the pet food business, which began in 1985 with the acquisition of the Carnation Friskies brand.

1999 Divestiture of Findus brand (except in Switzerland and Intaly) and parts of Nestle’s frozen food business in Europe. Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee brands (USA)

2000 Acquisition of Power Bar.2001 Nestle acquires Ralston Purina – Nestle Purina Pet Care

Company established.2002 Perrier Vittel Group re-named as Nestle Waters.2006 Acquisition of Power Bar

Nestle- The Organisation

Some names seem to belong to legend and the Nestle now synonymous with a prestigious trademark and world’s foremost food group originally consisted of two companies Henry Nestle of Vevey, Switzerland & Anglo Swiss Condensed Milk Company in Cham. Both companies competed vigorously from 1866 to 1906. These groups merged in 1905 and become the starting point of the recent food group.

Nestle is now the number one food company. It is present on all five continents has an annual turnover nearly 89.2 Billion Swiss francs. At present there are around 508 factories spread over 80 countries with 260 operating companies. One basic research center and 17 technological development groups and has more than 2,30,000 employees.

Nestle operations worldwide are divided into 3 zones:

o ZONE EUR : Europeo ZONE AOA : Asia and Oceanic o ZONE AMS : America

India comes under zone AOA which includes South-East Asia trading giants of Thailand, Indonesia, Malaysia, Singapore, China etc. besides Australia.

PRODUCT RANGE OF NESTLE

Its activities include manufacturing and marketing of

Condensed Milk Powdered Milk Ice Creams Other Dairy Products Infant Foods Chocolates & Confectionery Items Tea Coffee Culinary products Frozen products Fruits juices Mineral water Pet Foods Pharmaceuticals and Cosmetics

OPERATIONS IN INDIA

Nestle set up its operations in India as a trading company in 1912 and began manufacturing at the Moga factory in 1962. The production started with manufacturing of Milkmaid and other products were gradually brought into the fold. Nestle India Limited was formally incorporated in 1978 prior to which the manufacturing license was issued in the name of Food Specialties Limited. The corporate office is located Gurgaon and registered office at M-5A, Connaught Circus, New Delhi.

At present Nestle have 7 manufacturing units countrywide, which are successfully engaged in meeting the domestic as well as the exports demand. In addition there are several co packing units.

The Moga Factory is the largest and the oldest producing the widest range of foods products.

The other factories located at:

1. Choladi (Tamilnadu) - Instant Tea Export2. Nanjangud (Karnatka) - Coffee & Milo3. Samalkha (Harayana) - Cereals, Milkmaid & Deserts4. Ponda (Goa) - Chocolates & Confectionery5. Bicholim (Goa) - Noodles & Cold Sauces6. Pantnagar (Uttarakhand) - Noodles

The distribution comprises of six branches located in Calcutta, Delhi, Mumbai, Chennai, Manglore and Chandigarh. The distribution network is functioning efficiently with the transfer of goods from the factories to the mother godowns, which in turn are transferred to the clearing and the sales agents. The C&S agents sell it to the cash distribution that make the secondary sale in the market.

Presently Nestle India employs over 3000 employees. In addition, thousands of people are associated with Nestle, having indirect employment as Milk suppliers, vendors, contractors and distributions etc.

The production group first incepted under the name Food Specialties Ltd. started production at the Moga Factory in early 1962. At the time, with the help of Nestle International; the company shot into prominence as the countries foremost producer of milk products, particularly baby foods. With time, the nature & extent of the company expanded. The product range, since then, has now diversified so much and to such an extent that it is really a tough task to enumerate all the product of the company on a single sheet of paper. After 28 years of working under the name of Food Specialties Ltd.

The company realized that in order to survive in the international competition and to keep up with the changing time a better and closer relationship was required between Nestle International and its Indian counterpart. So in 1990, a unified production and marketing front, under the name of Nestle India was conceived.

THE MOGA FACTORY

Moga Factory started production in 1962. Today Moga plant contribute almost 75% of Nestle India’s total productive volume, manufacturing 77,000 tons of Food products. It employs 1500 people. The entire range of Milks, Culinary Products, Cereals and Coffee products are manufactured in Moga. Moga is located in the state of Punjab, about 400 kms North of New Delhi.

NESTLE INDIA – PRESENCE ACROSS INDIA

Beginning with its first investment in Moga in 1961, Nestle regular and substantial investments established that it was here to stay. In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud (Karnatka) factory became operational in 1989, the Samalkha (Haryana) factory in 1993. In 1995 & 1997, Nestle commissioned two factories in Goa at Ponda and Bicholim respectively. Nestle India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand.

Beside this Nestle India has the co-packing arrangements also:

PAAM – Noida (Noodles) SAJ – Kolkata (Noodles) Brar – Moga (Small pouches of coffee, Everyday etc) Sameer – Moga (Soups, Cubes) Bakeman’s – Nagpur (Nestle Polo) Campco – Puttur (Chocolates) Williamson Major Company – Silliguri (Tasters choice) Nutrine – Surinder Nagar (Toffee) Chloride Foods Ltd. – Puna (Pickles) Nijjer Agro Pvt. Ltd. – Amritsar (Cold Sauce 200gm) Indian Foods & Fermentation Ltd. – Nagpur (Dosa & Samber Mix)

NESTLE MOGA

In the Malwa region of Punjab State, there is a small town, which is popularly known among the famous grain markets of India. However the credit of bringing this town on the industrial map of the world goes to Nestle – a Swiss multinational company engaged in the largest food processing operation in the world. When in 1959 Nestle took decision to establish a milk processing factory, a very little could the people of Moga town and the farmers in the surrounding villages realize that the company now as Nestle India Ltd. would play such an important role in economic & social development of the area.

Company started milk collection in Moga area on 15th Nov 1961 and on the first day 510 kg of milk was collected from four villages. From that day onwards company is collecting milk continuously both morning and evening without break. The total procurement in 1962 was 2,054 million Kgs from 4,660 milk suppliers of 66 villages and in 1962 fresh milk reception are 10,233 million Kgs from 46,308 farmers delivering milk at 650 collection centers in 574 villages and 10 milk chilling centers. In 1998 the milk chilling centers have increased from 10 to 186.

SALIENT FEATURE OF NESTLE MOGA FACTORY

In the Malwa region of Punjab State, there is a small town, which is popularly known among the famous grain markets of the world. However the credit of bringing this town on the industrial map of the world goes to Nestle – a Swiss multinational company engaged in the largest food processing operation in the world. When in 1959, Nestle took decision to stablish a milk processing factory, a very little could the people of Moga town and the farmers in the surrounding villages realize that the company now as Nestle India Ltd. would play such an important role in economic and social development of the area.

The company is not only an industrial and a commercial house but has make sustained efforts to improve economic and social environment of the people in the area of its operation – be it farmers or residents of Moga. In the initial stages company faced many problems including procurements of milk sales of which was considered a sin at that time. But the team that surveyed that area found that it is quite suitable for development of milk and it has been proved to be right decision.

The company started its operation in 1962 with a capacity of 40,000 Kgs of milk per day kept on expanding on regular intervals and at present handling capacity of 11,00,000 Kgs of milk per day. Many more products are being developed.

Company started milk collection in Moga area on 15 Nov, 1961 and on first day 510 Kgs of milk was collected from four villages. From that day onwards company is collecting milk continuously both morning and evening without break. The total procurement in 1962 was to 2054 million Kgs from 46308 farmers delivering milk at 650 collection centers in 574 villages and 10 milk chilling centers. In 1998 the milk chilling centers have increased from 10 to 186. Nestle India Ltd. Moga factory is the oldest factory in India with the layout spread 57 Acres and have 3 plants within the factory and it is also largest factory in India. The factory consists of four production plants:

A. MILK OPERATIONB. CEREALSC. INSTANT DRINKS (VENDING MIXES)D. CULINARY

These plants are briefly described in the following fashion:

A. MILK OPERATION

This plant as name suggested is engaged in the processing of milk and all related activities that take place in Moga factory. This plant can be categorized in to number of sub-plants:

1) Fresh Milk ReceptionThe fresh milk, which is fundamental constituent of various products, which are manufactured in this factory, is received in this area in tankers and churns. The fresh milk is received in two ways namely churn milk and tanker milk. There are two

reception lines both for churn and tanker milk. There are 1100 agencies, which supply fresh milk in churns. The fresh milk is supplied by various chilling centers.Nestle has four own milk chilling centers. Testing of fresh milk is done in fresh milk lab churn is tested for flat and SNF only. The supplier are paid only for fat according to %age. In buffalo and cow milk fat varies from 4.5% to 5.5% and upto 4% respectively. While a number of tests are performed on tanker milk. If any one of the test is found to be positive then the tanker is rejected. The received milk is received in silos after passing through PHEs. The pasteurized milk is stored in 6 namely A, B, C, D, E & F. The pasteurized milk is packed in 15,000 polypacks per day. The fat and SNF in it is 4.6% and 8.6%. The milk stores in silos used in production of various products in Ghee plant and Liquid plant.

2) Ghee PlantThe milk stored in silo D, E & F is used for manufacturing Ghee, which is marked under the brand name Everyday. In this plant milk is passed through two separators. A phase inversion from 40-50% cream in the first and 70-80% fat in the second is obtained. The final concentration become 97% crude fat.

3) Liquid PlantThis plant is engaged in the processing of milk in the liquid form, prior to the drying operation done in the Egron, that convert it into milk powder. However various products such as, SCM and Dessert Mixes are produced in the plant, beside the base liquid for drying in Egron.The general process taking place in the plant can be summarized as follows:The fresh milked received from silos is first standardized i.e. the ingredients are added on the basis of report sent by FM lab and the product they are going to manufacture. This is needed, as there is always variation in the condition at each different batch of milk. After this the milk is boiled with steam under vacuum in evaporators in order to manufacture SCM. No other industry has been able to make this product in all over India. A part of the milk is sent to be Egron in order to get a milk powder. This milk is then blended certain ingredients in order to manufacture the recently launched product namely dessert mixes. The Ghee filling is also done in these plants HDPE drums.

4) EgronsEgron is a spray drier used to dry the milk into powder by using hot air, in all there are four Egrons in the Moga factory. Egron 2, 3, 4 are used for drying milk powder. The milk is then collected in tote bins and subsequently sent to powder filling and packing.

Powder Filling PlantThe filling and packing of milk is like Everyday, Lactogen and Nestogen is done in this plant. There are four filling and packing lines for this purpose. Two of these are used in filling of tins and other two are used for filling polypacks, bags and boxes required by production program.

B. CEREALS

This plant is engaged in the production of cereal based baby foods and infant formula. The production process consist of the addition of the various enzymes, vitamins, minerals and fruit extract to the cereal base. There are two filling and packing lines in cereal plant. One is for filling 400 gms sachet and other is filling for 400 gms tin. Now a 5 gms Everyday creamer filling line machinery is also installed in the filling section. Though the manufacturing of products is a continuous 3 shift operation. The tin filling line is generally run for the export packing accounts for the manufactured products. The major product of the cereal plant is Cerelac (wheat, apple, orange).

C. INSTANT DRINKS

This plant is engaged in the production of vending mix products are manufactured in Moga factory at present.1) Coffee Variant

a) NESCAFEb) SUNRISEc) NESCAFE LOW SUGARd) NESCAFE FRAPPEe) NESCAFE 3 IN 1

2) Tea Varianta) NESTEA PLAINb) NESTEA MASALAc) NESTEA CARDIMOM

3) Cold Tea Varianta) ICE TEA LEMONb) ICE TEA PEACHc) ICE TEA APPLE

4) Plain Vending Mixa) EVERYDAY VENDING MIXb) EVERYDAY BADAM MILK

D. CULINARY

This plant is engaged in production on Noodles tastemakers, soups, sauce & alike products. The plant is divided in 3 sections:

A) NOODLESB) SEASONINGC) COLD SAUCE

The operation of seasoning is inter-related with both the noodle and cold sauce section as the spice mix base for both is manufactured in the seasoning section. However all 3 have cast column of jobs taking place & can be briefly discussed as follows:

A) NOODLES

The noodle plant has production lines. The manufacturing of Noodles is a semi automatic process. The noodle line consists of the many products.

B) SEASONING

The seasoning section is engaged in the manufacturing of tastemakers, soups and cubes beside spice mixes for use in cold sauces. The major job in this area is a dry of various spices and powders and then packing them in the desired shape and form.

C) COLD SAUCE

This section is engaged in the manufacturing of a whole range of sauces under the brand name of ‘Maggi’. The basic manufacturing process is same for all. The line can be briefly described as:

Batch Preparation Mixing the batch Pasteurization.

At this stage the sauce is ready to be filled in the bottles. However the filling line starts before the actual filling takes place. There are 3 important processes prior to the bottle filling. These are:

Feeding empty bottles on the line Bottle washing Bottle inspection

From this the filling line actually starts. The rest of the line is: Filling Corking Cooling Capping Labeling Packing into cases Shrink wrapping of cases Pallesting of cases

The product of this line is Maggi sauce (Tomato Ketchup, Hot-n-Sweet, Masala Chilli, Chilli Garlic, Tomato Sauce)

VARIOUS DEPARTMENTS AT MOGA FACTORY

Production Personnel Industrial Engineering Utility Services Accounts

Purchase Quality Assurance Warehouse Field Service Security Factory industrial performance department

Personnel Department

The Personnel department in Moga Factory looks about the welfare activities of the employees under this come the various employees welfare activities such as:

Staff Sales Recreation Club Canteen Laundry Trainees Hostel Guest House Medical Facilities Sports Activity Infant Feeding Scheme Recruitment & Induction

This includes the section of personnel and their subsequent induction into the factory work enviorment. The organizational structure in Moga factory in keeping with the latest terminology is not a hierarchical one, i.e. not a pyramid structure. Infact, it’s a flat structure of kind, purposed by industrial psychological for better and more effective management affairs.

INDUSTRIAL ENGINEERING DEPARTMENT

The IE department in Moga factory was set up in 1971. The various responsibilities and activities that come under the work profile of IE department are:

Production performance assessment Setting of Machine and Labour Standard Manpower Control