On Monday, Swiss food and drinks giant Nestle SA expressed its desire to expand its medical nutrition business in near future.

For this, the Company will invest hundreds of millions of dollars in manufacturing foods that will be helpful in treating chronic illnesses like diabetes, obesity, cardiovascular disease, and Alzheimer's disease.

Nestle SA is also planning to start a medical nutrition institute in Switzerland and a subsidiary named Nestle Health Science SA. The main aim behind this project is to ‘pioneer a new industry between food and pharma’.

Nestle SA is based in Vevey town of Switzerland and is considered as one of the largest makers of processed foods in the world.

The Company manufactures Nesquik cereal, Haagen-Dazs ice cream, and Nespresso coffee and in the year 2009, the Company earned revenues of around $100 billion.

Nestle said the new subsidiary will start functioning from Jan. 1, 2011, and will run ‘at arm's length’ from other food and beverages business.

Emmanuel Baetge, who is the ex-Chief Scientific Officer of ViaCyte, will run the new Institute of Health Sciences.

In the previous month, Nestle acquired a UK-based Company called Vitaflo, which produces food products for people with inherited metabolic disorders.