Nestle India shares fall 3% as FSSAI issues notice over alleged insect detection in Maggi, firm rejects allegations

Shares of Nestle India slipped 3% on Friday amid reports that the Food Safety and Standards Authority of India (FSSAI) has issued a notice to the company over alleged detection of Insect / Larvae in the Maggi packet. Stock of Nestle India fell over 3% to Rs 1370 in the current session against the previous close of Rs 18,084 on BSE. Market cap of the firm fell to Rs 2.65 lakh crore. Total 1.08 lakh shares changed hands amounting to a turnover of Rs 15.06 crore. Later, the stock ended 3.23% lower at Rs 1375.85.    

Nestle India shares are trading lower than 5 day, 10 day, 20 day, 30 day but higher than the 50 day, 100 day and 200 day moving averages. 

Nestle India stock has gained 13% in three months but fallen 6.24% in a month.

The company rejected all the allegations against its product Maggi.

"We categorically reject the allegations circulating on media basis an unverified account regarding the presence of infestation, allegedly on MAGGI noodles. We are yet to receive the complaint sample from the Complainant as the account is unreachable. A detailed representation, supported by all relevant facts, quality records from batch and market samples, test reports, has already been submitted to the competent authorities. In the interim, as per standard process, the reference sample of the same batch was sent for testing to an independent FSSAI notified and NABL accredited lab which have found the reference sample to be free of any infestation," said Nestle India. 

According to reports, FSSAI has taken cognisance of complaints circulating on social media and issued notices to multiple companies. 

According to the notice, the FSSAI has sought a detailed Action Taken Report (ATR), including:

1. Details of the suppliers and manufacturing sources associated with the affected batch, along with findings from internal quality assurance reviews and inspection records.

2. Immediate containment and corrective actions undertaken by the company for removal of the impacted products from the distribution and supply chain network.

3.  Comprehensive preventive measures being implemented to strengthen quality control processes, enhance supplier oversight, and ensure that similar incidents are avoided in the future.