Shares of Nestle India Ltd fell nearly 3% on Friday after the Food Safety and Standards Authority of India (FSSAI) issued a notice to the company over an alleged complaint involving the detection of insect/larvae in a Maggi packet. The FMCG major rejected the allegations and said the firm is "confident that the facts and evidence will conclusively establish the truth of the matter".
The stock fell as much as 3.2% to an intraday low of Rs 1,376.25 and closed 3.29% lower at Rs 1,375.70.
According to an ANI report, FSSAI has taken cognizance of complaints circulating on social media and sought detailed action taken reports (ATRs) from multiple companies, including Nestle India, KFC, Flipkart India and Open Secret.
In Nestle India's case, the regulator issued a notice over the alleged detection of insect/larvae in a Maggi packet. FSSAI has sought source/vendor details, internal quality check logs of the batch in question, details of corrective measures taken to remove such products from the supply chain, and steps taken to prevent a recurrence.
"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.
"Nestlé India maintains stringent quality and food safety standards across its manufacturing operations. We remain fully transparent with the authorities and are confident that the facts and evidence will conclusively establish the truth of the matter. We have performed our quality analysis on batch and market samples, for a comprehensive investigation to FSSAI Accredited lab and the report confirms with the quality standards including confirmation of absence of infestation of any nature," said Nestle India spokesperson.
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