Nestlé creates shared value across rural communities in Sri Lanka
September 11, 2010 05:17 pm
* Deputy Minister of Finance & Planning, Dr. Sarath Amunugama, witnesses first hand Nestlé Lanka’s contribution to rural economic development
Dr. Sarath Amunugama, Deputy Minister of Finance and Planning and Senior Advisor to the President, visited the Nestlé Lanka factory in Pannala recently. The Minister observed first-hand Nestlé’s contribution in commercial farms, chilling centres and collection points and applauded the Company’s development initiatives in the Rural Communities in Sri Lanka.
The state-of-the-art, multi-product factory in Pannala is the epicentre of Nestlé’s local operation. Over 90% of Nestlé products sold in Sri Lanka are manufactured at this plant. The Company’s total investment in the factory by the end of this year will be over LKR 5 billion, out of which LKR 1 billion will be spent on expanding the factory’s and dairy collection capacity this year alone. The Company’s investments this year are a reiteration of Nestlé Lanka’s commitment towards Sri Lanka and to the development of local communities.
In addition to the Company’s strong focus on local fresh milk production, Nestlé also procures significant volumes of local raw material, e.g., over 35 million coconuts annually for “Coconut Milk products” sold locally and also exported to about 40 countries. Various local raw materials are used for Nestlé’s wide range of food and beverage products. The Company works with communities; helping them with sustainable dairy farming, sharing best practices throughout the value chain, and developing and sourcing the highest quality local raw material.
Nestlé Lanka will contribute an estimated LKR 2.5 billion directly to the rural economy this year through raw material procurement for fresh milk and coconut products. In addition, the Company paid LKR 4.1 billion in 2009 as taxes and duties to the government.
Nestlé Lanka places a strong focus on rural development. Creating Shared Value (CSV) for all stakeholders, for example, shareholders, communities around their factories, etc, is an integral part of our business. Whilst the ethos of CSV is a way of life throughout the Company, focus is placed on Water, Nutrition, and Rural Development, as this is where Nestlé Lanka believes value can be best created for long term social benefit.
Water conservation, management and education initiatives have always been a high priority for Nestlé Lanka. Currently, Sri Lanka is working towards meeting its Millennium Development Goals on water and sanitation. Nestlé Lanka is contributing to achieving this goal by constructing several outstanding hygienic facilities to supply clean drinking water. These facilities are built in schools, hospitals and places of worship across the island, benefiting thousands of people. In parallel, the Company conducts water education programmes in rural schools to promote water conservation.
The wellbeing of communities from which the Company sources their raw material and local labour is vital to the mutual success of all. Through rural development, providing local employment and encouraging sustainable production practices, Nestlé Lanka not only seeks to protect the supply and quality of local raw materials, but also aims to maintain positive long-term impact on local rural economies.
Photo caption (Top): Dr. Sarath Amunugama, Deputy Minister of Finance and Planning and Senior Advisor to the President, is welcomed by Nestlé factory management staff. Accompanying him are Antonio Helio Waszyk, Chairman, Nestlé Lanka PLC and Head of South Asia Region for Nestlé; Alois Hofbauer, Managing Director for Nestlé Lanka; David Saudan, former Managing Director for Nestlé Lanka and Sant Lal Girdhar, Vice President – Technical for Nestlé Lanka.
Bottom: (from left) Cubby Wijetunge; Antonio Helio Waszyk, Chairman, Nestlé Lanka PLC and Head of South Asia Region for Nestlé; Dr. Sarath Amunugama, Deputy Minister of Finance and Planning and Senior Advisor to the President; Alois Hofbauer, Managing Director for Nestlé Lanka; Sant Lal Girdhar, Vice President – Technical for Nestlé Lanka; David Saudan, former Managing Director for Nestlé Lanka and Bandula Egodage, External Affairs Manager for Nestlé Lanka.