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Business News/ Companies / Nestle India to resume export of Maggi noodles
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Nestle India to resume export of Maggi noodles

The ban, however, continues for Maggi instant noodles in the domestic market

Nestle says noodles made for the export market are produced on the same manufacturing lines as those for the Indian market. Photo: BloombergPremium
Nestle says noodles made for the export market are produced on the same manufacturing lines as those for the Indian market. Photo: Bloomberg

New Delhi: Nestle India Ltd is resuming the exports of Maggi noodles after the Bombay high court earlier this week gave it the go-ahead to do so instead of destroying stocks of the ready-to-cook snack it is recalling from the Indian market.

“Logistical arrangements to resume exports have begun after Tuesday’s decision," Nestle said in an email on Friday.

On Tuesday, the Bombay high court allowed the Indian unit of the Swiss company to export Maggi noodles, which it has been forced to take off shelves and destroy after a ban imposed on the product by the food regulator.

The ban was imposed following the detection of monosodium glutamate (MSG) and excess quantity of lead in some samples of the two-minute noodles.

On Friday, Canada certified that made-in-India Maggi noodle had passed safety tests. The UK, Australia, New Zealand and Singapore have also cleared the product for consumption. The ban on selling the two-minute noodles in India continues.

In its email, Nestle India said the noodles made for the export market are produced on the same manufacturing lines as those for the Indian market.

“We use the same recipes and raw materials as we use for domestic markets although Canada requires a different kind of salt to be used. Packaging materials are designed to meet the regulatory requirements of each importing country," the company’s email stated.

On 5 June, the Food Safety and Standards Authority of India (FSSAI) directed Nestle India to “stop further production, processing, import, distribution and sale" of Maggi noodles.

Nestle India said after the ban that the company would withdraw about 30,000 tonnes of noodles from 3.5 million retail outlets, in a process that would be completed by July-end. It has so far destroyed about 30% of the noodles recalled, the company said on 26 June.

The company estimates a loss of 320 crore on account of the recall. Resumption of exports will have only a marginal impact, according to analysts.

“Total exports are just 7-8% of Nestle India’s overall revenues and noodles just one part of the overall exports, which include coffee and other products," noted Abneesh Roy, associate director of institutional equities (research) at Edelweiss Securities Ltd.

Nestle India’s shares closed at 6,173.80, down 1.2%, while the BSE’s benchmark Sensex closed at 28,092.79 points, up 0.53%.

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Published: 03 Jul 2015, 04:20 PM IST
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