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Jun 11, 2010, 06.20 PM IST | Source: CNBC-TV18

Nestle: Redefining corporate social responsibility concept

Nestle’s business principles incorporate compliance, sustainability and creating shared value. They look at it differently from the way companies look at corporate social responsibility.

Nestle: Redefining corporate social responsibility concept
IT IS one of India’s branded food manufacturers. It is a market leader in pretty every category, it operates in. It did sales of Rs 5,000 crore last year and it has been growing it over 20% over the past two years. It is Nestle .

There aren’t too many who have been untouched by Nestle. A Swiss company that came into India 1912, as a trading partner, has in the last nine decades become a part of India’s collective consciousness in ways very few brands can be.

To its shareholders, Nestle has been paying dividends continuously for over two decades. For the stakeholders and the community it markets to, it has been a 50-year journey of creating value.

Nestle’s business principles incorporate compliance, sustainability and creating shared value. They look at it differently from the way companies look at corporate social responsibility.

Till 1961, Moga was a non-descript village in Punjab, this until the government told Nestle that it must develop dairy farming in village and thus began the journey of creating shared value.

Instead of investing in land and setting up its own milk farms, Nestle decided to help create a model where it provides the technology with the farmer being the pillar of the strategy. So farmers like Sardool Singh have used Nestle’s technology to help increase produce hygienically and reduce wastage.

The returns are rich. Sardool, who began with just four milk cows in 1961, today has 50 cattle and produce 500 litres of milk every single day.

So how does this value created at the grass roots tie in with the larger strategy?

CNBC-TV18's Shereen Bhan caught up with Nestle India’s Chairman and Managing Director Antonio Helio Waszyk, who says finding the Indian way of doing things, is key.

Here is a verbatim transcript of the exclusive interview with Antonio Helio Waszyk on CNBC-TV18. Also watch the accompanying video.

Q: Nestle doesn’t really believe in the concept of corporate social responsibility in the manner in which other companies seem to define it. You believe in the concept of creating shared value, which ties in with your business principles, which are globally acceptable for Nestle as a group.

A: We do believe that creating share value is one level higher than corporate social responsibility. In corporate social responsibility, you help communities, you do some kind of philanthropy and creating share value is just the way we do business. And we do believe that by the way we do business, we create value to all stakeholders, the shareholders, but also the community we operate with.

Nestle stock price

On November 21, 2014, Nestle India closed at Rs 6317.25, up Rs 170.80, or 2.78 percent. The 52-week high of the share was Rs 6624.55 and the 52-week low was Rs 4536.00.


The company's trailing 12-month (TTM) EPS was at Rs 118.23 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 53.43. The latest book value of the company is Rs 245.68 per share. At current value, the price-to-book value of the company is 25.71.

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