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Nestle is in the midst of controversy again, this time for alleged ash content in its Maggi noodles, following tests at a state government lab.

twitter-logo Niti Kiran   New Delhi     Last Updated: December 1, 2017  | 20:55 IST
Not a 2-minute journey, but what next?

Nestle is in the midst of controversy again, this time for alleged ash content in its Maggi noodles , following tests at a state government lab. The samples collected by the district administration of Shahjahanpur, Uttar Pradesh, reportedly contained ash content above the permissible limits of human consumption. The FMCG company, however, has claimed not to have received any such order yet. In 2015, the instant noodles product from this FMCG major was banned following allegations of high lead content. While it remains to be seen how this controversy shapes out, let's examine the impact of the last controversy...

 

During 2015, the financial performance of the company was significantly impacted due to Maggi Noodles crisis. Domestic sales of the company declined 17.8 per cent and export sales decreased by 1.3 per cent...

 

Shareholders were impacted too.

 

On 5th June 2015, FSSAI ordered the ban on manufacture and sale of the product, however, on 9th November, 2015 Maggi  Masala Noodles was  re-launched. It took almost 2 years to regain its leadership position.

 

 

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