1. NESTLE INDIA LIMITED: MAGGI NOODLES
AT WAR WITH REGULATORS
Presentated by :
Sakshi Dhyani
Wazid Ali
Shikhar Jha
Soumajit Nag

2. Q1.HOW DOES NESTLE INDIA AND MAGGI
CONTROVERSY EFFECT?
Ans: Due to presence of MSG and higher level of lead
the following things happened :
 FSSAI ordered Nestle India to recall all Maggi
variety in the Indian market because they found
them unsafe and potentially harmful for the
consumers.
 Court in Bihar filed a legal complaint against Indian
celebrities under sections 270,273 and 276 of Indian
penal code 1960.
 Presence of glutamate in the Maggi noodles lead to
withdrawal of its nine variants product from the
market .
 Many foreign countries of both Asia and Africa had
complained to the consumer federation regarding the
product and its compliance and thereby withdrawing
the product.
 Many states across India were banned for an
indefinite period of time by the government.

3. CONTINUE…
Financial impact on the company
 Resulting in the ransacking of the employees from
their respected job positions.
 Shareholders lost $1billion in one trading session.
 Ambuja cements destroyed 24,000 tonnes of the
30,000 tonnes of Maggi stock, amounting to a loss of
$390 million, 20% of company’s annual revenue.
 Experts estimated a complete destruction of Maggi
noodles worth $500 million with a loss of $200
million in brand value because of the ban.
 On August 1,2015, Nestlé's net loss of $10.05 million
for the quarter ending on June 30, 2015.
 In 2014, net profit of $45.24 million during the same
quarter.
 Total income from operations declined by 19.52% to
reach $31.2 million as against $37.44 million in the
same period the previous year.
 Net domestic sales were down 20.6%.

4. Q2:WAS FSSAI RIGHT IN DECLARING A NATION
WIDE BAN ON MAGGI?
Ans :
Yes, FSSAI was right in banning the
nationwide ban on maggi because:
 High amount of harmful contents
and presence of lead in it causing
deadly diseases like lung cancer,
kidney and liver problems.
 Not in the interest of consumers.
 Maggi Noodles is a junk food with
largest market share of 70% that
targets youngsters and children.
They need healthy food to live a
healthy life.

5. Q3:HOW SHOULD HAVE NESTLE INDIA
HANDLED CRISIS?
ANS :
 MAGGI SHOULD NOT BE IN
DENIAL.
 DRAFTING A MEDIA PLAN.
 EDUCATE, EDUCATE, EDUCATE.
 USE OF SOCIAL MEDIA
PLATFORM.
 BRAND MANAGER TO
COMMUNICATE WITH MEDIA.
 BY BEING PROACTIVE.

6. SUMMARY
 There is an increasingly growing trend of fast and
junk foods In India. The availability of such foods
makes children and youngsters careless about their
health. It becomes tough for parents to control eating
habits of their children. There is a need of change that
can be witnessed through stringent regulations. It is a
high time to take some strict measures against the
companies that follow negligent approach in food
production process.