FIJI
An island of hope

ERIC GAN
Read our exclusive interview with
Eric Gan



NESTLE (FIJI) LTD

ERIC GAN
GENERAL MANAGER PACIFIC ISLANDS

Contact:
Lot 1, Wailekutu Industrial - SubDivision
Veisari
P.O. Box 3042
Lami, Fiji Islands
Telephone: +679 336 2113
Facsimile: + 679 336 1166
website: www.nestle.com
 
NESTLE FIJI

Nestle established a joint venture company with C J Patel in 1984 to manufacture MAGGI instant noodles. The company was known as Fine Foods Fiji Ltd which was later changed to Nestle (Fiji) Ltd. In 1992 Nestle acquired 74% of Maganlal Jiwa & Sons Ltd from the Raniga bothers. We decided to merge the two companies which are of equal size and called the new entity Nestle (Fiji) Ltd . However we kept the name Maganlal Jiwa and call this plant Maganlal Jiwa Ba Plant. C J Patel have sold their shareholdings to Nestle and today our minority partners are the RANIGA brothers.

Since 1992 the turnover of the company has grown by five times mainly through exports to Australia, New Zealand, Papua New Guinea, New Caledonia, French Polynesia and other Pacific Island states. This has been possible through Nestle presence and marketing strength in all these countries. Nestle Fiji employs a local workforce of about two hundred people.


Nestle (Fiji) Ltd operates two plants one in Ba and one in Lami. The Lami plant manufactures Maggi instant 2 minute noodles. Nestlé re-located its Maggi Noodles factory from Auckland to Ba last year, in order to manufacture snacks and sugar based confectionary for the Australian market. Currently the two factories generate over $12m in export sales annually. The additional investment will raise the company's annual export more than $7.2m. The company's manufacturing activities in Fiji will now be consolidated in Ba. The plant will be manufacturing for the New Zealand, Australia and Pacific Islands market.

NESTLE IN THE PACIFIC ISLANDS

One of the less well known facets of the Nestlé activities in Oceania is the successful operation of the Nestlé Pacific Islands business. In 1989, Pacific Islands was declared a market in its own right and since then a number of outstanding achievements have been made in the Nestlé Pacific Islands business where the total market adds up to a surprising 6.5 million people.

Nestlé Pacific Islands [NPI] enjoy a number of different Nestlé products, sourced from all over the world, some of which are manufactured in the Islands and some that are produced specifically for NPI in Australia. Some of the popular Pacific Island products include MAGGI noodles, sugar confectionery, bubble gum, extruded snacks under the BONGO brand and chicken seasoning tablets in addition to yogurt, ice cream, desserts and chocolate. In addition, products such as MILO, SUNSHINE Instant, COFFEE-MATE and Coconut Milk are repacked in the Pacific Islands.
NESTLE BA (FIJI) NEW EXTENSION

A cost effective labour market and the ready availability of sugar in the country were the main factors in the setting up of a new Nestle operation in Ba (Fiji) according to company's Pacific General Manager, Eric Gan. Nestle has invested F$20 million in Fiji since relocating part of their operations from New Zealand. The new investment is close to F$10 million to date.The noodle line is now running at 65% efficiency or higher. On the confectionery side of the business, price increase for consumers are inevitable as the Fiji Government recently raised the local sugar price to almost the level of the world price.
The extension is doubling the floor space of the factory. It is built to accommodate an Instant Noodle line transferred from Nestle New Zealand factory. It has twice the capacity of the old Lami Plant. With this larger capacity Nestlé is able to produce for Fiji, New Zealand and Export requirements for MAGGI instant noodles. The capacity of the new noodles line is of 8000 cartons of 48 packets x 85g of MAGGI 2-Minute Noodles per day, adding up to a year volume of 6,000 tons.
The plant in Ba has the space available to accommodate more equipment to produce other products. To begin with Nestlé has installed a ball bubble gum line from Nestle New Zealand plant. The products are exported to Australia, New Zealand and Pacific Island states. This adds value to the sugar product in Fiji. To minimise sugar confectionery facilities Nestlé will bring in new equipment from Egypt, which will replace many of the old machines. This will enable better quality produced products.

Approximately 60 new jobs have been created directly. Nestle has over 200 local staff in both Production and Trading. With the capital committed in Fiji, Nestlé will be looking at how to expand sales rapidly to get return on investment for their shareholders. As Fiji domestic market is relatively small (700,000 people) Nestlé will be expanding exports to Australia, New Zealand and Asia.

NESTLE GLOBAL

With a total workforce of approximately 224,541 people in some 479 factories worldwide, Nestlé is not only Switzerland's largest industrial company, but it is also the World's Largest Food Company. Nestlé products are available in nearly every country around the world.
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