Nestle India Faces FSSAI Scrutiny Over Maggi Complaint
Nestle India's shares experienced a notable decline of over 3% in the current trading session, following reports that the Food Safety and Standards Authority of India (FSSAI) has issued a notice to the company. The regulatory action comes amid allegations of insect or larvae detection within Maggi noodle packets, stemming from complaints circulating on social media.
FSSAI Demands Comprehensive Action Report
The FSSAI has taken serious cognizance of the complaints and has reportedly issued notices to multiple companies, including Nestle India. The notice specifically demands a detailed Action Taken Report (ATR) from the company, outlining several critical areas:
- Details of suppliers and manufacturing sources connected to the affected product batch, along with findings from internal quality assurance reviews and inspection records.
- Information on immediate containment and corrective actions undertaken to remove the impacted products from the distribution and supply chain network.
- A comprehensive outline of preventive measures being implemented to strengthen quality control processes, enhance supplier oversight, and ensure similar incidents are avoided in the future.
Stock Performance Reflects Market Reaction
On the BSE, Nestle India's stock closed 3.23% lower at Rs 1375.85. This downturn led to a reduction in the firm's market capitalization to Rs 2.65 lakh crore. A total of 1.08 lakh shares were traded, amounting to a turnover of Rs 15.06 crore. The company's shares are currently trading below their 5-day, 10-day, 20-day, and 30-day moving averages, though they remain above the 50-day, 100-day, and 200-day averages. While the stock has seen a 13% gain over the past three months, it has fallen 6.24% in the last month.