Nestlé Expands To Exploit BRIC-Like Potential

Swiss dairy major Nestlé has started operations at its recently expanded East Java dairy production facility in Indonesia. The company invested US$100mn to double capacity at the site, one of its three Indonesian production facilities, to exploit forecast food consumption growth of 50% by 2014. While BMI notes that the investment carries a degree of risk - notably from Indonesia's underdeveloped distribution infrastructure and low per capita income - we believe the company's short and long-term growth prospects in the country more than warrant its financial

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