Nestlé’s relationship with India dates back to 1912, when it began trading as ‘The Nestlé and Anglo Swiss Condensed Milk Company (Export) Ltd.’ importing and selling finished products in the Indian market. Nestlé has contributed significantly to the country’s industrial development and has become an integral part of the social fabric.
After India’s independence in 1947, the economic policies of the Indian Government emphasised the need for local production. Nestlé responded to India’s aspirations by forming a Company in India and set up its first factory in 1961 at Moga, Punjab where the Government wanted Nestlé to develop the milk economy.
The initial years of Nestlé’s manufacturing operations were challenging years. There was a lack of basic infrastructure for industrialization. Social traditions made the farmer reluctant to sell milk for commercial purposes and the supply of milk for viable commercial production was unpredictable. Nestlé overcame the obstacles through perseverance, commitment and by understanding the local community.
In Moga, Nestlé encouraged systematic development and injected resources into the system. It worked with the local community to gradually build confidence in the milk trade without compromising customs and sentiments. The Company introduced Nestlé’s Agricultural Services to educate, advise and help the farmers in a variety of aspects. The Company invested substantially to establish milk collection centers, with cooling tanks and milking machines and farmers were provided training in breeding and feeding practices and methods to increase the yield of their herds. Nestlé’s efforts had a multiplier effect on the development of the region and transformed Moga into a prosperous and vibrant milk district.