Nestle drops 7% after Delhi govt action against Maggi

Delhi govt summoned officials of Nestle India claiming samples of Maggi noodles fail to meet food safety norms

Shares of Nestle have dropped 7% to Rs 6,310 on the Bombay Stock Exchange (BSE) after the Delhi government summoned officials of Nestle India claiming that the samples of Maggi noodles fail to meet food safety norms and are unsafe.

The samples of Maggi noodles tested in Delhi were found dangerous for consumption carrying lead more than the permissible limit. The Delhi government is likely to impose a heavy fine against Nestle for selling unsafe products.

“Out of 13 samples taken last week, 10 have been found to be containing lead more than the permissible limit. Eighty percent of the samples failed. The officials (of Nestle India which manufactures Maggi noodles) will be called tomorrow (Wednesday) and further action will be taken,” said Health Minister Satyendra Jain said on Tuesday.

Meanwhile, based on a consumer complaint in coimbatore, a sample of the firm's baby milk powder, NAN Pro-3 has been tested positive for live larvae. According to the results, the milk powder has been stated unsafe for consumption by the Tamil Nadu Food Safety Wing.

Earlier, The UP FDA found lead content in Maggi to be seven times more than the permissible level in a routine test of two dozen noodle packets and ordered a recall of a 2 lakh-pack batch of noodles at the end of April.

The stock opened at Rs 6,533, touched a low of Rs 6,119 on the BSE.