Fast Moving Consumer Goods major Nestle may face more action by the Uttar Pradesh Food Safety and Drug Administration, which is testing more batches of Maggi after ordering recall of a batch of about 2 lakh packs of the instant noodles due to higher than permitted levels of lead and a food additive.
Maggi re-entered the market on November 9.
On August 13, Bombay High Court lifted the ban on nine variants of the fast food.
Bajaj Finance was the top laggard in the Sensex pack, tanking up to 8 per cent, followed by M&M, Tata Steel, Bajaj Auto, ONGC, HDFC Bank and Kotak Bank. On the other hand, TCS, Tech Mahindra, HUL, Axis Bank and ITC were the top gainers.
Earlier in the day, the Kendriya Police Kalyan Bhandar circulated an order stating that 1,026 products manufactured by firms such as Bajaj, Dabur, VIP industries, Eureka Forbes, Jaquar, HUL (foods) and Nestle India will not be sold at CAPF canteens anymore as they are not 'swadeshi' or are prepared from 'purely imported products'.
The trouble for Nestle's Maggi started in Uttar Pradesh last month and has now spread nationwide. The Food and Drug Administration has directed all states on Wednesday to get sample of India's most popular instant noodles tested for high content of lead and mono-sodium glutamate, a taste enhancer.
Having learnt their Maggi lessons hard way in 2015, the FMCG sector is desperately looking for a brighter new year with hopes pinned on revival in rural demand.
"I believe in driving big brands. It is very important to have focus in your approach towards placing new brands in a market. Just because we are present across 10-15 categories internationally doesn't mean we can roll out the products everywhere," says Martial Rolland, MD, Nestle India said.
Picking up the consumer switch to healthier drinks, Nestle India is expanding its liquid milk portfolio with specially formulated milk for people who may be lactose-intolerant or diabetic.
The lawyer had urged the court to hear the matter urgently.
In yet another blow for Nestle India, live larvae and worms have been found in their milk powder in Coimbatore.
But Bachchan added that he hadn't received any notice in connection with the product that he "stopped promoting" two years ago.
Celebrities endorsing Maggi can face action If Maggi is tested of high content of MSG.
Is India's most popular instant noodles banned in Uttar Pradesh?
FMCG firms such as ITC, Parle Products, Marico, Emami, PepsiCo India and CG Corp Global on Wednesday assured uninterrupted supply of their products based on the learnings from the last year's lockdown, even as surge in COVID-19 cases in India forced Maharashtra to declare a 15-day curfew while other states also imposing various restrictions.
New packets will have to be tested again in three laboratories; these laboratories are specified by the court.
Maggi has also come on the radar of US Food and Drug Administration.
Nestle withdraws Maggi noodles in India after a MSG controversy cropped up recently.
The apex consumer court on Monday issued notice to Nestle India Limited on a Rs 640-crore or Rs 6.40 billion suit against it by the Centre.
A Bihar court on Tuesday ordered that an FIR be registered against Maggi brand ambassadors Amitabh Bachchan, Madhuri Dixit and Preity Zinta and arrest the cinestars.
Decision to avoid investor backlash.
According to Nielsen, rural growth has plunged to a low 5 per cent in the third quarter of quarter from a high 20 per cent a year ago. This has for the first time in seven years rural growth has fallen below urban levels.
While sales momentum from rural areas may last another three to six months, sales growth in urban areas could stage a comeback by next year's June quarter as people learn to live with the coronavirus and economic activity gradually improves in the cities.
The HC had earlier refused to grant relief to Nestle by rejecting its plea for stay of the orders of the food regulator banning nine variants of Maggi noodles.
Nestle India is unlikely to remain listed for a long time in the future on Indian stock exchanges, according to Citigroup's equity research arm Smith Barney's latest report on the Swiss major's annual report for 2002-03.
ITC on Monday said it is conducting more tests on its products at accredited labs across India.
The company is listed among the top suppliers of food and beverage products for people in Chennai
After Maggi, the sample of macroni pasta was taken from Mau and sent to National Food Analysis Laboratory.
More than 10 states have imposed a ban on the sales of Maggi.
Experts point out that National Anti-profiteering Authority does not have the power to advise companies on depositing amounts voluntarily.
Food processing industry players are worried that this could have an impact on their overall investment plans.
Brokerage houses reacted to the piece of news by reducing the target price assigned to the company.
Maggi's reach is now close to some three million outlets.
As wholesalers largely failed to meet GST norms, companies were in a fix. According to industry veterans like Sunil Duggal, chief executive of Dabur, the hazard led many to look beyond third-party distribution and take the leap to cover unattended markets directly.
The Indian part of the Swiss group employs more than 5,000.
Maggi controversy seems far from ending, now Tamil Nadu starts scrutiny.
The central government has said it will look into the matter.
Bachchan said he had acted in 190 Hindi films and the union government honoured him with Padma Shri, Padma Vibhushan and Padma Bhushan awards.
Nestle India has been arguing that ban order was arbitrary.
If the actress fails to respond to the notice within the stipulated time frame, a case could be registered against her, Food Security Officer Mahimanand Joshi said.
