Nestle shares trade flat on BSE Sensex as allegations of ash in noodles hit
The packaged food giant in India is now starring at another allegation of ash content in its famous two minute noodles. Share price of the company has come under pressure on Thursday.
Key Highlights
- Nestle shares were trading marginally lower in the early trade session.
- While its shares were flat during the pre-open at Rs 7501.65 apiece.
- Ash content was laid on the company by UP district administration.
Packaged food manufacturer in India, Nestle, saw its stock fall marginally in early trade on Bombay Stock Exchange (BSE) Sensex on Thursday morning.
Share price of the company opened 0.22% or 16.65 points lower at Rs 7485 per share on BSE Sensex following the alleged case of ash found in the branded noodles packet.
The company's shares soon edged up 0.25% or 18.75 points to Rs 7520.40 per share at 0939 hours.
It was trading flat 0.07% or 5 points up during pre-open session at Rs 7501.65 apiece on BSE Sensex.
The company however refuted claims that there was any content of ash in its two minute noodles.
“Maggi noodles are 100% safe for consumption. We strongly reiterate that at no stage of the manufacturing process, ash is added to Maggi noodles,” the company said in a BSE filing on Wednesday night.
The allegations on the company were placed by Uttar Pradesh district administration who said the ash content in the noodles was above ‘permissible limits’.
"This appears to be a case of application of incorrect standards, and we will file an appeal urgently once we receive the order. In 2015, Nestlé India and other companies had represented to the relevant authorities, via industry associations, to set standards specific to instant noodles to avoid confusion amongst enforcement officers and consumers. The standards have since been introduced and the product complies with these standards. We regret the confusion it may cause to consumers," Nestle added.
There was a blanket ban on all the varieties of Maggi noodles in 2015, after the Food Safety and Standards Authority of India (FSSAI) found that the instant two-minute noodles were potentially harmful to health.
The controversy cause Maggi noodles to stay off the shelves for over five months and cost the brand over Rs 1,000 crore in sales. Nestle destroyed over 30,000 tonnes of Maggi that year.
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