With Nestle India apparently getting ready to re-launch Maggi noodles in a big way before Diwali, an official of the Food Standard and Safety Authority of India (FSSAI) claimed that the food giant can
With Nestle India apparently getting ready to re-launch Maggi noodles in a big way before Diwali, an official of the Food Standard and Safety Authority of India (FSSAI) claimed that the food giant cannot launch Maggi Oats Masala noodles with tastemaker. Nestle had earlier released the variant without the grant of approval from the food regulator. The manufacturers, therefore, will have to wait for official clearance to relaunch this variant.
Meanwhile, reeling under the ban on Maggi instant noodles, Nestle India on Thursday reported a 60.1 per cent decline in its standalone net profit at Rs 124.20 crore for the third quarter ended September 2015. The company, which appointed MD Suresh Narayanan as its chairman to perform the dual role, had posted standalone net profit of Rs 311.29 crore in the last fiscal.
Even as preparations are on for the relaunch, variants of Maggi will take some more time to hit the market. Available in the market earlier, the Maggi Oats Masala noodles cannot be re-launched. The product, being proprietary food in nature, is covered under Section 22 of the FSS Act, 2006 and requires risk and safety assessment and approval before it is manufactured and placed in the market. While the company had applied for approval in August 2014, certain clarifications were sought for safety and risk assessment about the product in February 2015.
However, the company did not respond to the clarifications within the prescribed time, and it was found that the company had released the product in the market without taking the approval and started promoting its sales, said the FSA official.
Calling the act “illegal” and “violation” of the FSS Act, Rules and Regulations, the official added that the product, therefore, cannot be allowed for human consumption unless the risk assessment parameters are cleared and it cannot be re-launched along with the other variants the company wishes to re-launch in November.
Sources revealed that Maggi is expected to hit the market in the second week of November (pre-Diwali) with new labels without mentioning “No added MSG”. While the colour of the packet is expected to remain the same, it is learnt that plain Maggi masala will be the first variant to hit the market. Talks are also on with major online selling platforms like Snapdeal so that consumers have options for gifting purposes.
Meanwhile, the recall had come as a big blow to the manufacturers. During the period under review, Nestle’s net sales declined 32.12 per cent to Rs 1,736.20 crore as against Rs 2,557.80 crore a year ago, Nestle India said in a statement. “Export sales decreased 6.4 per cent, as they were impacted by the Maggi noodles issue and lower sales to Nepal due to the blockade of the border in the last week of September,” the company said.
Significantly, due to the ban on Maggi, Nestle India had reported a standalone loss of Rs 64.40 crore in the second quarter for the first time in the last 15 years. Nestle India said it is “faced with an unusual situation and continued to deal with it during the quarter as well”.
Nestle India chairman and MD Suresh Narayanan said that Nestle India has again started manufacturing Maggi.
In June this year, the FSSAI had asked to recall Maggi noodles, saying it was “unsafe and hazardous” for consumption after finding lead levels beyond permissible limits. The company had withdrawn the instant noodles from the market.
Nestle India, which took a hit of Rs 450 crore and destroyed over 30,000 tonnes of the instant noodles since June when it was banned, had stated that it would continue with the existing formula of the product and not change the ingredients.
The consumer affairs ministry had filed a class action suit against Nestle India seeking about Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements.
