Published By : 10 Nov 2015 | Published By : QYRESEARCH
Nestlé’s Maggi, the much loved instant noodles brand, is back on store shelves in India. After being banned for almost 5 months, the company re-launched the national 2-minute food on Nov. 09, 2015. Allegations of mislabeling and containing excessive lead were the reasons for its recall in June 2015, which happen to be the biggest food recall in India, costing Nestlé a whopping sum of Rs. 450 Cr. Almost 30,000 tons of Maggi noodles were destroyed after it was banned in the country.
The order to ban Maggi was issued by the Food Safety and Standards Authority of India (FSSAI) on June 05th, 2015. Mr. Suresh Narayanan, Chairman Nestle India, stated at a briefing in New Delhi on Nov 09th, 2015 that this 5 months period has been a severely challenging period for Nestle. Now, when the ban has been lifted, they are feeling really happy and satisfied to bring back Maggi to the Indian market.
Nestlé, after going through all these ruckus, went into a damage control mode and got Mr. Suresh Narayanan, the Nestlé veteran, back to the country as the Chairman and the Managing Director of Nestlé, India in order to get Maggi, one of the most famous brands of the company, back into Indian shops.
Maggi, as a brand, has an overall market value of Rs. 2,000 Cr. Nestlé India has reported a standalone loss of Rs. 64 Cr. in the Q2 of this FY that ended on June 30th, 2015. This was the first time it had suffered this much of loss in the past three decades. The net profit dropped down 60%, reaching Rs. 124 Cr., whereas the net sales declined 32% in the Q3 that ended on Sep 30th, 2015.