nestle maggi ban case study

From Crisis to Comeback: Maggi Crisis Management Case Study

Have you ever wondered how a beloved brand like Maggi navigated through a major crisis and managed to salvage its reputation? 

In this blog post, we will delve into the fascinating case study of Maggi’s crisis management. 

From the emergence of health concerns surrounding its popular noodles to government bans and consumer backlash, Maggi faced a daunting challenge. 

However, through strategic crisis management approaches, the brand not only survived but also thrived. 

Join us as we examine the key strategies employed by Maggi, evaluate their effectiveness, and draw valuable lessons from this compelling case study.

Let’s learn through reading Maggi crisis management case study

Brief history and popularity of Maggi

Maggi, a brand of instant noodles and food products, has a rich history that spans over a century. It was first introduced in 1884 by Julius Maggi, a Swiss entrepreneur, as a solution to provide affordable and nutritious meals to the working class. Maggi quickly gained popularity due to its convenience and flavor-enhancing properties.

Over the years, Maggi expanded its product range to include various food items such as soups, sauces, bouillons, and noodles. The brand’s instant noodles, in particular, became a household name across many countries, cherished for their quick preparation time and delicious taste.

Maggi’s popularity soared globally, with a presence in over 90 countries. It became synonymous with quick and easy meals, often considered a go-to option for busy individuals and families. Its widespread appeal and loyal consumer base cemented Maggi’s position as a leading food brand in the international market.

However, the brand’s stellar reputation and popularity would soon face a severe test when it encountered a crisis that shook consumer confidence and forced Maggi to reevaluate its crisis management strategies.

The Crisis

In 2015, Maggi faced a significant crisis that cast doubts on the safety and quality of its beloved noodles. It all began when the Food Safety and Standards Authority of India (FSSAI) conducted tests on Maggi noodles and found elevated levels of lead and monosodium glutamate (MSG), a flavor enhancer, beyond the permissible limits.

The test results sparked widespread concerns about the potential health hazards associated with consuming Maggi noodles. Lead is a heavy metal that, when ingested in excessive amounts, can cause severe health problems, especially in children. 

MSG, on the other hand, had been a subject of controversy for its alleged negative health effects, including headaches and allergic reactions.

The news of the test results spread like wildfire , causing a wave of panic among consumers. Social media platforms amplified the concerns, and soon there was a massive backlash against Maggi. 

Consumers began boycotting the brand, demanding action from regulatory authorities to safeguard their health.

The crisis escalated when several Indian states imposed bans on Maggi noodles, and the product was swiftly removed from store shelves. The brand’s reputation, carefully built over decades, was suddenly under threat, and Nestlé, the parent company of Maggi, faced a critical challenge in managing this crisis effectively.

The health concerns surrounding Maggi noodles not only posed a threat to public health but also raised questions about Nestlé’s commitment to product safety and quality. To regain trust and restore its reputation, Maggi needed a robust crisis management approach that could address the concerns of both consumers and regulatory authorities.

Government bans and consumer backlash

The health concerns surrounding Maggi noodles led to swift action by governmental authorities in various countries. In India, where Maggi had an immense presence, several state governments imposed a ban on the sale and production of Maggi noodles. 

The bans were based on the test results that showed elevated levels of lead and MSG, raising concerns about public health and safety.

The government bans added fuel to the already raging fire of consumer backlash. Consumers felt betrayed and deceived by a brand they had trusted for years. Social media platforms became a battleground for expressing outrage and sharing personal experiences, further tarnishing Maggi’s reputation.

Hashtags like #BoycottMaggi trended, and consumers actively participated in online discussions, spreading negative sentiments and urging others to boycott the brand.

The consumer backlash extended beyond social media. Protests and demonstrations were organized in various cities, with consumers disposing of Maggi noodles publicly to show their discontent. The crisis hit Maggi hard, resulting in a significant decline in sales and a loss of market share.

Impact on Nestlé and Maggi’s reputation

The crisis surrounding Maggi had a profound impact on both Nestlé and the brand’s reputation. Nestlé, as the parent company, faced significant challenges in managing the crisis and protecting its overall corporate image.

The incident not only raised questions about Maggi’s product safety and quality but also put a spotlight on Nestlé’s commitment to consumer welfare. The fact that elevated levels of lead and MSG were found in Maggi noodles brought into question the effectiveness of Nestlé’s quality control processes and regulatory compliance.

The impact on Maggi’s reputation was equally significant. The brand went from being a household favorite to being associated with health concerns and regulatory violations. The once-trusted brand became a symbol of mistrust and betrayal in the eyes of consumers.

Maggi’s image as a convenient and reliable food choice was severely tarnished. The crisis highlighted the need for Maggi to not only address the immediate concerns regarding product safety but also rebuild its reputation from the ground up.

The success of their crisis management efforts would determine whether Maggi could regain consumer trust and restore its position in the market.

Crisis Management Strategies Employed by Maggi

Following are the key aspects of Maggi crisis management strategy that were employed by Maggi to reclaim customers’ trust and restore its brand’s reputation.

Prompt response and acknowledgement of the crisis

One of the key crisis management strategies employed by Maggi was a prompt response and acknowledgement of the crisis. Recognizing the gravity of the situation, Maggi did not shy away from addressing the issue head-on.

As soon as the test results and the subsequent bans were announced, Maggi swiftly issued public statements acknowledging the concerns raised and expressing its commitment to consumer safety. The brand took responsibility for the situation and assured consumers that they were taking the matter seriously.

Maggi’s prompt response also allowed the brand to take control of the narrative to some extent. By proactively communicating about the crisis, Maggi aimed to prevent misinformation from spreading and mitigate further damage to its reputation. This approach helped Maggi set the stage for subsequent crisis management efforts.

Open communication channels with stakeholders

To address consumer concerns and keep them informed, Maggi utilized multiple communication channels. The brand set up dedicated helplines and email addresses to receive queries and feedback from consumers.

Social media platforms were actively monitored, allowing Maggi to respond promptly to consumer inquiries and complaints. Through these channels, Maggi provided regular updates on the steps being taken to address the crisis, assuring consumers of their commitment to resolving the issue.

Maggi also prioritized open communication with its distributors and retailers. The brand ensured that they were well-informed about the situation and provided them with guidance on how to handle consumer queries and concerns.

Furthermore, Maggi actively engaged with the media, providing regular press releases and participating in interviews to keep the public informed about the progress made in addressing the crisis. This helped to shape the narrative surrounding the brand and countered negative publicity.

Collaboration with regulatory authorities

Maggi understood that working closely with regulatory bodies was essential to rebuild trust and ensure compliance with safety standards. The brand cooperated fully with investigations, providing necessary information, test results, and documentation to the regulatory authorities. This collaboration helped demonstrate Maggi’s commitment to addressing the issues raised and working in alignment with the regulatory framework.

By actively involving regulatory authorities in the crisis management process, Maggi showcased its willingness to comply with regulations and prioritize consumer safety. This collaborative approach fostered a sense of shared responsibility between Maggi and the regulatory bodies, leading to a more constructive and effective resolution of the crisis.

Additionally, Maggi sought guidance and recommendations from the regulatory authorities on implementing appropriate measures to address the concerns. The brand worked closely with the authorities to establish revised quality control protocols and testing procedures to ensure the safety and compliance of its products. This collaboration not only helped in resolving the immediate crisis but also set the foundation for a more robust and transparent system moving forward.

Product recall and quality assurance measures

Firstly, Maggi initiated a voluntary recall of its noodles from the market. This proactive step demonstrated the brand’s commitment to consumer safety and its willingness to take immediate action to address the issue.

The product recall was a significant undertaking, involving the retrieval and removal of Maggi noodles from store shelves across affected regions. By recalling the products, Maggi aimed to prevent further consumption and potential harm to consumers.

Simultaneously, Maggi implemented rigorous quality assurance measures to ensure the safety and compliance of its products. The brand conducted extensive testing of its noodles, not only for lead and MSG but also for other potential contaminants.

Maggi worked with reputable laboratories to conduct these tests and set stringent internal standards for acceptable levels of contaminants. This commitment to quality assurance aimed to rebuild consumer confidence by assuring them of the safety and integrity of Maggi products.

Public relations and brand rebuilding efforts

To regain consumer trust, Maggi launched a robust public relations campaign. The brand actively engaged with the media to share updates on the progress made in addressing the crisis. This included press releases, interviews, and statements from company representatives.

Maggi used these opportunities to emphasize its commitment to consumer safety, the measures taken to rectify the situation, and the steps implemented to prevent similar issues in the future. The goal was to rebuild credibility by being transparent and proactive in its communication with the public.

Maggi also leveraged social media platforms and its website to communicate directly with consumers. The brand shared information about the product recall, quality control measures, and safety protocols implemented. Maggi encouraged open dialogue, addressing consumer queries, concerns, and complaints promptly and empathetically.

Additionally, Maggi launched targeted marketing campaigns focused on re-establishing its image as a trusted and reliable brand. These campaigns highlighted the brand’s heritage, quality standards, and rigorous testing processes. Maggi emphasized its commitment to providing safe and nutritious food options for consumers, focusing on the steps taken to regain their trust.

To reinforce its commitment to quality, Maggi also partnered with renowned nutritionists and health experts to endorse the brand and vouch for its safety. These collaborations aimed to rebuild credibility by associating Maggi with authoritative voices in the field of nutrition and food safety.

Lessons Learned from Maggi’s Crisis Management 

Following are the important lessons that serve as valuable guidelines to navigate and mitigate the impact of crises effectively, protecting the reputation and long-term success of the organization.

A. Importance of proactive crisis preparedness

Maggi’s crisis highlighted the importance of being prepared for potential crises before they occur. By having proactive crisis management strategies in place, organizations can respond swiftly and effectively when faced with unexpected challenges. This includes having a crisis management team, conducting risk assessments, and developing response plans that outline steps to be taken in different scenarios. Being prepared enables organizations to mitigate damage, maintain control of the narrative, and protect their reputation.

B. Effective communication as a key component of crisis management

Maggi’s crisis underscored the critical role of effective communication during a crisis. Prompt and transparent communication with stakeholders, including consumers, government authorities, distributors, and the media, is crucial in managing a crisis. Open channels of communication help address concerns, provide accurate information, and demonstrate a commitment to transparency and accountability. Clear and consistent messaging helps regain trust, counter misinformation, and shape the narrative surrounding the brand.

C. Collaborative approach with regulatory bodies

Maggi’s collaboration with regulatory authorities proved to be essential in managing the crisis. Working closely with regulatory bodies demonstrates a commitment to compliance and consumer safety. By actively involving regulatory authorities, organizations can benefit from their expertise, guidance, and support in resolving the crisis effectively. Collaboration fosters trust, enables a unified approach, and helps establish long-term regulatory compliance standards.

D. Building and maintaining brand trust and credibility

Maggi’s crisis highlighted the significance of brand trust and credibility. Building a strong reputation based on consistent quality, transparency, and consumer satisfaction is crucial in weathering a crisis. Organizations must prioritize maintaining trust by delivering on their brand promises, adhering to safety and quality standards, and being responsive to consumer concerns. Cultivating brand loyalty and credibility beforehand helps in times of crisis, as consumers are more likely to give the benefit of the doubt and remain supportive.

Final Words 

Maggi crisis management case study provides valuable insights into how a brand can effectively navigate a crisis and rebuild its reputation. Maggi’s experience highlights the importance of proactive crisis preparedness, effective communication, collaboration with regulatory authorities, and building and maintaining brand trust and credibility.

Finally, maintaining brand trust and credibility is crucial in crisis management. By consistently delivering on brand promises, organizations can weather a crisis with the support of loyal consumers. Building strong reputations beforehand helps in times of crisis, as consumers are more likely to give the benefit of the doubt and remain supportive.

By learning from the Maggi crisis management case study, organizations can implement these strategies to navigate crises effectively, protect their reputation, and emerge stronger from challenging situations.

About The Author

Tahir Abbas

Related posts.

Gamification in the Workplace – Benefits and Examples

Benefits of Change Management for Individuals

Step-by-Step Approach to Communicating Policy Changes to Employees

Nestlé’s Half-Billion-Dollar Noodle Debacle in India

Nestlé spent three decades building a beloved noodle brand in India. Then the world’s biggest food and beverage company stumbled into a public relations debacle that cost it half a billion dollars. A cautionary tale of mangled crisis management on an epic scale.

It was the middle of the night when the jangle of his cellphone woke Sanjay Khajuria from a deep sleep. In the few seconds it took him to get his bearings—to remember he was in a Manhattan hotel room and not at home in his bed in Delhi—the Nestlé executive had an unsettling thought: Could this be about Maggi?

Khajuria is not accustomed to receiving urgent, late-night phone calls. As head of corporate affairs for Nestlé India, he typically divides his time between handling routine regulatory issues and trumpeting the company’s achievements in “creating shared value”—the approach to corporate social responsibility that Nestlé espouses. In fact, Khajuria, 51, was in New York to represent his company in a shared value leadership summit, for which Nestlé was a sponsor.

Virtually everything in his world had appeared to be in order when he boarded his flight to New York. There was just one pesky issue to clear up. Health officials in one of India’s 29 states had raised questions after testing a sample of one of Nestlé India’s bestselling products: Maggi 2-Minute Noodles.

Nestlé, the world’s largest food and beverage company, has sold Maggi (pronounced “MAG-ee”) in India for more than 30 years, and the brand’s ubiquity and cultural resonance on the subcontinent is something akin to Coca-Cola’s (KO) in the U.S.  In 2014, Indians consumed more than 400,000 tons of the instant noodles—marketed in 10 varieties, from Thrillin’ Curry to Cuppa Mania Masala Yo!—and Maggi accounted for roughly a quarter of the company’s $1.6 billion in revenue in the country. That year Maggi was named one of India’s five most trusted brands.

Khajuria’s team had received the regulatory notice about Maggi 10 days earlier. The food-safety commissioner of Uttar Pradesh, India’s most populous state, with 205 million people, was claiming that a package of the noodles had been found to contain seven times the permissible level of lead and had recalled the batch. Nestlé India had quickly responded with test results of its own showing that its noodles were absolutely safe. Khajuria expected that officials would find his company’s response compelling and that the issue would soon be resolved. But why was someone trying to reach him at such a late hour?

He reached for his phone and answered the call. It wasn’t good news. Khajuria’s colleagues back at home informed him that a widely read Hindi language newspaper had reported the news about the health notice. More alarming: The article suggested that state officials would soon recommend that the Food Safety and Standards Authority of India (FSSAI), the country’s central regulator, should ban Maggi nationwide.

Khajuria spent the next hour on the phone formulating a game plan. Nestlé would respond to media requests but not yet issue a public statement. And it would send a three-person delegation to meet directly with the health officials in Uttar Pradesh the following day. At this point, allows Khajuria, he was starting to get worried.

When he hung up, he couldn’t get back to sleep. It was May 11, 2015.

What had at first seemed like a minor regulatory annoyance was about to spiral into a crisis of epic proportions for Nestlé. Within a week the first national news story about a Maggi health scare appeared in the Times of India . A couple of days later the hashtag #MaggiBan surfaced on Twitter . Then things got worse.

On June 5, 2015, less than a month after Khajuria’s phone rang in the middle of the night, India’s central food regulator announced a temporary ban on the manufacture, sale, and distribution of Maggi noodles. In its order the FSSAI pronounced Maggi “unsafe and hazardous for human consumption,” a designation supported by 30 government lab tests showing Nestlé’s noodles contained excess amounts of lead.

Enraged consumers wasted no time venting their anger. In some cities protesters in the street smashed and set fire to packs of noodles and photos of Bollywood stars who were paid Maggi endorsers. One prominent newscaster compared the situation to Bhopal, the worst industrial accident of all time, in which a toxic gas leak at a Union Carbide pesticide plant in central India killed thousands of people.

The Maggi meltdown would prove costly. Nestlé lost at least $277 million in missed sales. Another $70 million was spent to execute one of the largest food recalls in history. Add the damage to its brand value—which one consultancy pegged at $200 million—and the total price tag for the debacle could easily be more than half a billion dollars. And the fallout continues.

Nearly a year after the ban, Maggi noodles are back on shelves in India, but somewhat precariously so. The product’s future depends on two legal cases that are working their way through the Indian court system. Both pit Nestlé against the Indian government.

Nestlé, meanwhile, is still struggling to make sense of what exactly transpired. To counter the accusations of Indian health officials, Nestlé has produced voluminous tests—on more than 3,500 samples—that it says show its instant noodles are perfectly safe, with lead counts well below the legal limit. For a 150-year-old Swiss business that brands itself as the “world’s leading nutrition, health, and wellness company,” the idea that it fell short on quality control—especially regarding a substance with such dire health effects—is anathema. But where, then, did things go so terribly wrong?

This is a story about precisely that: What happens when a $100 billion global giant suddenly finds itself in a crisis—and everything it does to get out of it only sinks the company further into the morass? It’s an epic narrative of a powerful corporation brought low by an obscure food-safety agency in India and a handful of local government functionaries. And it’s a case study in irony about a company that, after a humiliating and existential scandal over infant formula, tried to reinvent itself as a paragon of corporate do-gooding and transparency—only to discover that no matter what positive, world-bettering things it did, it couldn’t quite escape its tainted past.

It’s also a cautionary tale about a towering multinational utterly losing its way in one of the world’s most sought-after markets—India—which, as it happens, has chewed up and spit out a number of mighty names in the past. Coca-Cola left the country in 1977 after being asked to hand over its secret formula—only to return decades later and get banned again, briefly, when pesticides were found in its soda. Walmart (WMT) scaled back its ambitious plans in India in 2013 when it realized it couldn’t possibly comply with regulations requiring 30% of its products to be sourced from small Indian businesses. Just recently Facebook tasted its own frustration when, in February, Indian regulators rejected its Free Basics web access program. This is the regulatory thicket that pro-business Prime Minister Narendra Modi has promised to untangle—and that still seems as impenetrable as ever.

Despite Nestlé’s long history in India, the company’s executives managed to misread a fast-moving situation at every point. And in that sense the Maggi episode is certain to be studied by MBA students and public relations executives looking for lessons for years to come.

“This is a case where you can be so right and yet so wrong,” says Nestlé CEO Paul Bulcke. “We were right on factual arguments and yet so wrong on arguing. It’s not a matter of being right. It’s a matter of engaging the right way and finding a solution.” He adds: “We live in an ambiguous world. We have to be able to cope with that.”

To understand why Nestlé failed so spectacularly in this instance, it helps to go back to where the saga started.

A Surprising Test Result

Sanjay Singh bent down and plucked a four-pack of masala-flavored Maggi noodles from a low shelf at Easyday, a well-maintained mini-mart on the western edge of Barabanki. It was a Monday morning in March 2014. As one of five food inspectors in Barabanki, a rough-and-tumble town of 150,000 in central Uttar Pradesh, Singh, 40, typically spends most of his time cracking down on street and festival vendors, like the biryani rice peddler who was spiking his product with an illegal yellow coloring.

But on this day he was following orders from the top: The food-safety commissioner of Uttar Pradesh had called on officers to spend the week raiding supermarkets. The exercise was in preparation for Holi, a spring celebration in which revelers throw colored powders and gorge on snacks. The Easyday, just across the road from Singh’s office and one outlet in a chain that had originally been co-owned by Walmart, was the inspector’s first stop that morning. Singh was intrigued by the no added msg label on the bright-yellow package of noodles.

Like most Indians, Singh was familiar with Maggi. His daughter liked to eat the instant noodles, which are sold in a plastic bag containing two components: a patty of deep-fried noodles, plus the “tastemaker” packet of spices (the same basic components as the ramen noodle packs that are a staple of the diet of college kids in the U.S.). Per standard procedure, Singh sent off one of the four Maggi packages to a laboratory across the state in Gorakhpur for testing.

The results, which arrived a few weeks later, surprised the inspector. The Maggi sample had tested positive for MSG, or monosodium glutamate, a controversial ingredient that’s legal in India but requires disclosure and a warning that the product is not recommended for children under 12 months old. A flavor enhancer often associated with Chinese food, MSG has for decades been blamed for everything from bad dreams to cancer—all claims that research has failed to substantiate.

The fact that the Maggi sample contained MSG when its packaging said it didn’t was a violation punishable with a fine of up to 300,000 rupees—or about $4,500. Had Nestlé paid the penalty, this story might have ended there.

But when Nestlé India was notified, the company denied adding MSG and appealed the finding. As a result, in June 2014, a second Maggi sample was sent to a different government laboratory more than 600 miles away in Kolkata. After a bizarrely long delay—one that has helped fuel conspiracy theories—the narrative would take a more serious turn.

An Earthshaking Development

Nearly a year later, in April 2015, Singh was at the office when the lab report on the second sample finally came back from Kolkata. In a very Indian twist, it had somehow gotten lost in the mail on its way to Kolkata for a period of months—in the process taking a 1,200-mile detour through the Himalayas—and once at the lab, it had apparently ended up at the bottom of a pile.

Singh skimmed the first page of the report and noted that despite the long time gap, everything appeared to be in order. The sample had arrived with the packet seals intact, and the test results were signed and stamped by the director of the lab. He flipped ahead to see whether MSG had shown up again. And, yes, there it was. “MSG: Present.”

This report was far more comprehensive than the first one. Singh, an organic chemistry Ph.D., continued methodically down the page until his eye landed on “Lead: 17.2 ppm.” Could it really be 17.2 parts per million?

He read it again, stunned. According to the report, the Maggi sample contained more than seven times the permissible level of lead—over 1,000 times more than the company claimed was in the product.

Lead is naturally present in small concentrations in air, water, and soil, and so it’s expected that trace amounts show up in the food supply. But this was not a trace amount. And significant exposure to lead causes wide-ranging and serious health effects, particularly in children.

Two days later Singh and his colleagues made another morning raid at the Easyday. This time the purpose was to suspend the store’s license for selling substandard food and to collect any tainted noodles. But there was no stock to seize. The Maggi sample that tested positive for lead was from a batch that was long gone from shelves.

As the food officers spoke with the store manager, the earth started to shake violently. They all scrambled for cover as packages tumbled from the shelves. When the shaking stopped, they joked that the earthquake—which they would later discover had killed thousands of people in neighboring Nepal—was the “Boom!” of giant Nestlé falling to the ground.

Nestlé’s Polite Superiority

The headquarters of Nestlé India is a five-story, glass-walled building that sits along an eight-lane expressway in Gurgaon, a commercial district about 30 minutes outside central Delhi. Though it’s situated in the middle of a sleek, urban area, cows still occasionally meander across Nestlé House’s front lawn.

Nestlé began doing business in India in 1912. Today the Swiss parent company owns 63% of Nestlé India, which trades separately on the Indian stock exchange. Nestlé’s operations in India encompass eight factories, an R&D facility focused on developing products for the Indian palate, and more than 7,000 employees.

The Kolkata lab report arrived in the mail at Nestlé House on May 1, 2015, along with a notice from the food-safety commissioner of Uttar Pradesh, and landed on the desk of technical director Aris Protonotarios, the man in charge of quality and safety at Nestlé India. A soft-spoken Greek, Protonotarios has spent more than a quarter of a century with Nestlé. His confidence in his company’s quality assurance systems is such that, he says, he didn’t consider for a minute that any packages of Maggi could have left a factory with lead in them. “To anyone at Nestlé, being told your product is unsafe and hazardous is an insult,” he says. “To me it felt personal.”

Nestlé can trace that attitude all the way back to founder Henri Nestlé, a self-described “merchant chemist” who started a company bearing his name in 1866 and was said to obsess over quality. Today Nestlé is one of the world’s biggest and most profitable corporations, with some 335,000 employees, and products sold in every country around the world. Last year it ranked No. 70 on Fortune’ s Global 500 list. The multinational has a deep roster of potent brands—including Kit Kat, Nescafé, Stouffer’s, and, of course, Maggi.

Maggi is actually one of Nestlé’s oldest and largest global brands. It originated in 1863 when Julius Maggi, a Swiss industrialist looking to improve the nutrition of the nation’s workforce, developed condensed pea and bean soups. Maggi’s seasonings, soups, and noodles are now sold in 101 countries.

People hardly even ate noodles in India when Nestlé introduced Maggi in 1983. But the masala spice mix made the taste familiar, and the two-rupee price point made it widely affordable. Marketed to time-pressed mothers—“Mummy, I’m hungry” went the product’s popular jingle—Maggi soared to popularity as a children’s snack. Soon it was mainstream comfort food and “Maggi points”—stands at which vendors cook up noodles to order—proliferated.

By 2015, Nestlé was manufacturing Maggi at five of its eight Indian factories. Protonotarios says that lead is among the many safety hazards around which Nestlé designs its quality assurance system: Each factory regularly checks raw materials, its water supply, and packaging for lead. Nestlé India also tests its finished product at each factory every six months, as required by India’s regulations. “The monitoring process would have picked up something if it wasn’t okay,” says Protonotarios matter-of-factly. “And if it had, we would have done something about it.”

A check of its records showed no irregularities. So Nestlé India prepared a stack of its internal monitoring documents and mailed a response to the Uttar Pradesh food-safety officials on May 5. The company advised the state regulator that, based on its review, no further action should be taken in the case.

In retrospect, it was a stunningly dismissive reaction—and one that would provide a blueprint for more drama to come. Because of Nestlé’s inherent confidence in its own processes and data, it couldn’t imagine that it might have a problem on its hands. That attitude of detached if polite superiority would irritate officials and exacerbate Nestlé’s problems, especially when the Indian press got wind of the story.

“We Just Had No Control”

If the media environment in the U.S. seems overhyped at times, it is downright somnambulant compared with the round-the-clock free-for-all on the subcontinent. India has nearly 400 news networks, and the country’s news debate programs often feature up to eight talking heads on a screen at once. The Maggi controversy would soon became fodder for hours of lively, breathless punditry.

The evolution from local issue to national debate was blindingly fast. On May 7, two days after Nestlé India sent its response to the health officials, the first stories about problems with Maggi noodles began to appear in Hindi language news coverage in Uttar Pradesh. Shortly after that, employees in Nestlé India’s social media command center began to notice comments about tainted noodles on Twitter and Maggi’s Facebook page. Khajuria received his late-night phone call in New York on May 11. Within a week speculation about a Maggi ban was everywhere. Yet Nestlé didn’t issue a statement on the matter until May 21, when it asserted that there was “no order to recall Maggi Noodles being sold” and that the product was “safe to eat.”

Why wasn’t Nestlé more proactive? Partly because, as a general rule, the Nestlé way is to deal with authorities directly rather than through the press. Nestlé India execs also say they were still gathering facts and doing as much testing of their own as possible. But what’s the use of data if you don’t explain yourself?

While Nestlé stayed mostly quiet, the story metastasized. One of the first days Maggi made news, Maarten Geraets, Nestlé India’s head of foods, sat down in front of a TV in the company’s boardroom to see what was being said. It was nonstop and not kind; as he flipped channels, he was seized with horror and utter frustration. The Maggi news was on every channel. “We just had no control.”

To outsiders, too, Nestlé appeared paralyzed—or worse, guilty. Many Indians took the company’s silence as a sign of wrongdoing. The bigger the story got, the more scattered the coverage became. Some reports focused on “dangerous” MSG, while others focused on lead. Rumors spread in the hinterlands that Maggi contained glass particles—a mix-up due to the linguistic similarity of the words “lead” and “glass” in Hindi.

The escalating media attention also put pressure on another entity: the FSSAI, India’s national food regulator. That put a spotlight on Yudhvir Singh Malik, a career civil servant and the FSSAI’s CEO for just half a year when the Maggi scandal broke. In his short tenure he had already tangled with multinationals over labeling and quality issues. However, Nestlé was a reputable global company, and the evidence against it was limited to two samples, one of which had taken an unusually long journey to the lab. He decided that more investigation was needed.

On May 25, Malik wrote to the state food-safety commissioners—each of India’s 29 states and seven union territories has its own fully empowered food and drug regulator—asking that they test Maggi and submit findings to the FSSAI by June 1. Officials across the nation dispatched inspectors to grab Maggi packets.

By this time Nestlé’s leadership team in Switzerland was beginning to grasp that something in India was not unfolding as the team’s data said it should.

From “Technical Matter” to Crisis

For one of the world’s largest consumer-facing companies, Nestlé operates at a surprising remove, beginning with its geography. “The Centre”—as its global headquarters is known—is not near a major hub but in Vevey, a sleepy town of 18,000 on the northern shore of Lake Geneva.

Other than through its marketing, Nestlé hasn’t traditionally engaged much with the wider world. It doesn’t generally seek media attention, and its communications department is tiny relative to its size. Until three years ago, Nestlé didn’t have a centralized PR team in the U.S., its largest market.

Chalk it up partly to a natural Swiss reserve, but Nestlé’s aloofness also has to do with the long shadow cast by the company’s notorious baby formula scandal. In 1974 a non-profit called War on Want published a 12-page pamphlet called The Baby Killer that excoriated the formula industry for its marketing tactics. In pushing their products over breast-feeding, the document alleged, companies like Nestlé had led to the malnourishment and deaths of countless “third world babies.” The entire industry was targeted, but Nestlé, as the largest formula company, took the biggest hit. A high-profile boycott of Nestlé’s products ensued. The company tried many things to stem the criticism, to little avail.

Nestlé’s executives lost their appetite for broad public engagement. “They felt very quickly attacked,” says Albert Pfiffner, the company’s historian. “It has taken a generation to overcome this feeling.”

During the past decade Nestlé has embraced a version of corporate civic duty that is in keeping with its reserved culture: creating shared value, or CSV. The philosophy is that building a sustainable business naturally generates positive social by-products. Why bother with one-off charitable initiatives when you can simply invest for the long term? Today Nestlé execs talk about their business almost exclusively through the prism of CSV. The company’s 2015 CSV report, which tracks the company’s 39 societal commitments, from “delivering nutrition information and advice on all our labels” to “working against corruption and bribery,” was 351 pages; its annual financial report was 176.

From his spare, elegant office in the Centre, Bulcke presides over his global business empire with a sort of mathematical laissez-faire, trusting his company’s chain of command. A lanky, blue-eyed Belgian fluent in six languages, the 61-year-old joined Nestlé in 1979 and became CEO in 2008. (He was a surprise pick over Paul Polman, who is now Unilever’s (UL) CEO.) Bulcke knows that a company the size of Nestlé is bound to run into controversy now and again. That explains his favorite aphorism: Tall trees catch more wind.

When he first heard about the Maggi case, says Bulcke, it struck him as a straightforward technical matter involving testing methods that could be judged and handled by his capable people in the field. “It was a ‘What is your spectrometer setting?’ sort of thing,” Bulcke tells me. He says now he was “too Cartesian” in his thinking.

By the end of May, his communications team was sounding the alarm that the story was exploding. As he listened to a Maggi crisis conference call on June 2, a couple of things became clear to Bulcke: He had badly miscalculated, and it was time for him to jump in.

“You feel it,” he says. “For the morale of the troops, you’ve got to show your nose.” He left for India the next day.

The CEO’s Terrible 24 Hours

When Bulcke arrived in India on June 4, he found his top managers preparing to visit the FSSAI. The regulator had called at 10:30 that morning and asked them to come to a meeting at 1 p.m.  The executives were unclear on the agenda, but they didn’t think that Bulcke should go. They feared he was “too senior.”

Bulcke has a breezy, authoritative demeanor, and he dismissed any such notion. “Come on, that’s what I’m here for,” he said.

“This is a case where you can be so right and yet so wrong. We were right on factual arguments and yet so wrong on arguing.” — Paul Bulcke

Bulcke and his team arrived and sat down across a conference room table from Malik and another FSSAI official. The mood was tense. Nestlé India’s team complained it had not received test reports from the states and argued that tests were being done improperly. Malik fired back that Nestlé would have to ask the states for their test results and that their procedures were proper.

As he listened, Bulcke realized how far apart the two sides were. Looking back, he compares the meeting to watching a house burn down while two firefighters argue over the fire’s cause.

Sensing the regulator might do something drastic, Bulcke says he decided what to do almost on the spot: Nestlé needed to launch a voluntary recall and pull every variety of Maggi off the shelves.

His resolve was bolstered that afternoon when states began to ban the noodles. The first ban came from Uttarakhand, a state in northern India, where Nestlé had one of its five Maggi factories. Bans in five other states and territories quickly followed—including Delhi, the one that contains the national capital.

Bulcke gathered his management team in Nestlé House’s fifth-floor boardroom and explained his thinking. Nestlé had lost the regulators and had lost the media. The only way to regain control of the narrative—and win back consumers’ trust—would be to pull Maggi and relaunch.

Executing the recall would be a gargantuan task. The product they were recalling was in 3.5 million outlets. Plus, it was India, with all its red tape. Each of the 29 states is like its own country, meaning that trucks have to stop at each border for inspection. Vehicles can enter cities only during certain hours, and to do so they must be a certain size. Even with 38 distribution centers across the country, some of Nestlé India’s products take 13 days to get to market. The company would need to reverse-engineer this process. And it would have to do something with all those noodles. Nevertheless, Bulcke was determined about the course of action.

Nestlé set a press conference for noon the next day to announce the news, and at 12:30 a.m. the company sent a short statement to the Indian stock exchange: “In spite of Maggi noodles being safe, Nestlé India decides to take the product off shelves.”

Khajuria notified Malik a short while later by text: “We have decided to take Maggi noodles off shelves.” Bulcke went to his hotel and, he says, “got a good night’s sleep.”

An Uphill Journey Begins

The head of the FSSAI was not satisfied with the developments. Though Maggi would be pulled from the market, Nestlé’s press statement insisted on the product’s safety. Meanwhile, he had mounting evidence from labs around the country indicating otherwise.

So the regulator countered Nestlé’s move by implementing a temporary national ban of Maggi.

Aware of Nestlé’s 12 p.m. press event, Malik punched out an eight-page order calling on Nestlé to respond within 15 days with a reason that product approval for all varieties of Maggi noodles should not be revoked. He fired it off to Nestlé India by email at 11:15 a.m., and the news broke while Bulcke was meeting the media.

The press conference took place in a high-ceilinged hall in Delhi’s Oberoi Hotel. Despite the short notice, journalists packed the room, and Indian news channels broke into their programming to air the CEO’s remarks.

Bulcke kept his opening comments to five minutes and a few key points: Maggi is safe; consumer trust has been shaken by unfounded concerns; we’re working with authorities; we are committed to India.

Then the floor was opened up to questions, and the room erupted as the 200 journalists demanded answers from Bulcke: Why had it taken Nestlé two weeks to make a statement? If Maggi was safe, was he saying the government labs were wrong? No, he replied, he wasn’t criticizing the government’s science. For 45 minutes he gulped Perrier from a goblet and managed to keep his cool.

Bulcke flew out later that evening. He had been in India for roughly 24 hours, and things had seemingly gone from bad to worse. But the CEO left the country feeling happy and confident that things were about to turn around: “It was the first step of an uphill journey.”

We’ll Settle This in Court

The next step would be played out in the courts. The FSSAI had given Nestlé India 15 days to respond to its order, which threatened the company with permanent loss of Maggi’s product approvals. Responding with an explanation was one option; suing was another.

Filing suit against the FSSAI, the agency that regulated not just Maggi but also Nestlé India’s many other products, was risky. But six words in the FSSAI order were especially troubling to Nestlé’s executives: “unsafe and hazardous for human consumption.” They felt the phrase exposed them to legal action. Millions of people in India ate Maggi. What was to stop anyone who had health problems from blaming Nestlé’s noodles?

On June 11, six days after the government issued its temporary ban, Nestlé India filed suit against the FSSAI in Bombay High Court.

The Maggi proceedings spanned the summer months and became a media spectacle of their own. At the heart of the case was whether the government order to ban the sale of Maggi was legal.

Nestlé’s case was this: The FSSAI hadn’t given the company a proper hearing and had failed to follow “principles of natural justice” by issuing its order. The order, Nestlé argued, caused the company heavy financial losses and did irreparable damage to its reputation.

Further, Nestlé said, the rationale for the order was bogus, having been based on select findings of unaccredited laboratories that used improper testing methods. The FSSAI based its ban on test results for 72 samples of Maggi done by various state labs, 30 of which were found to have elevated levels of lead, though none nearly as high as the report that kicked off the crisis. But Nestlé argued that the government had ignored overwhelming evidence—the roughly 2,700 lab reports Nestlé had submitted from internal and external labs at that point—that indicated lead levels were under the permissible limit.

The government case asserted that the order for the temporary ban was an urgent matter of public safety and that the regulator did give Nestlé a hearing when Malik met with the company’s officials on June 4.

Moreover, the government argued, the order caused Nestlé no undue harm: The company had already recalled Maggi. The government’s ban was temporary, covering just a 15-day period. All Nestlé had to do was respond satisfactorily—which it couldn’t do because the product wasn’t safe. Nestlé had decided to incinerate the 37,000 tons of Maggi it had collected. Why would a company recall a perfectly safe product and burn it? The government order hadn’t mandated that Nestlé get rid of the noodles. (Though regulators had okayed it.) That act was tantamount to a cover-up. Likewise, Nestlé’s many thousands of test results could have been easily fabricated.

The Big Question

Was there lead in Nestlé’s noodles?

The widest, most puzzling, and most important divide in the Maggi affair is over that seemingly simple question. Several state governments in India tested Maggi samples and reported elevated levels of lead. Nestlé ran its thousands of tests and declared that no problem existed. Who was right?

Testing for lead is straightforward with sophisticated lab equipment, the findings unequivocal and reliable. Government lab analysts, though paid less than corporate colleagues, are a trained and educated group, says Ashwin Bhadri, CEO of Equinox Labs, one of India’s leading private lab companies. That said, he acknowledges the labs are dreadfully underresourced and stuck with antiquated instruments. “Some are 20 years old,” he says. “They don’t have the manpower or the chemicals to run the equipment. It’s really sad.”

A week after the Maggi ban, a former director of Kolkata’s Central Food Laboratory, Satya Prakash, reportedly sent a letter to the Prime Minister’s office and the nation’s health minister expressing concern over the nation’s lack of noodle-testing standards. In 2013, Prakash, who retired in 2009, published a scathing article in which he declared “the working conditions of labs are anything but functional.”

In stark contrast, Nestlé’s Quality Assurance Center in India sits, like a glass jewel, at the center of the company’s well-manicured campus in Moga. The day I visited, a scientist in a crisp white lab coat met me in the building’s foyer. He greeted me warmly before turning quickly, and with discernible bitterness, to the differences between a government lab and the pristine, state-of-the-art space he was about to show me. Government labs are likely to use cheap household blenders to mix food samples, he said; Nestlé has a $5,000 contamination-proof titanium blade. Nestlé uses pricey porcelain bowls to hold substances, whereas the government labs probably use inexpensive ceramic ones that leach, and so on. Standing there, it was hard to imagine contamination happening in such an environment.

Yet Nestlé’s money and its vaunted commitment to quality haven’t prevented other safety-related recalls. In March the company voluntarily recalled 3 million DiGiorno, Stouffer’s, and Lean Cuisine products in the U.S. “because of the potential presence of glass pieces.”

Many Indians, including professionals with knowledge of the food industry, continue to suspect that there was something wrong with Maggi. They find it hard to fathom that so many government tests could be wrong, and they suggest the food giant got a little sloppy in one of its factories, where lead-contaminated water or raw material or old equipment—possibly combined with the lax oversight of contract workers—caused the problem.

In the absence of a definitive answer, the next best thing would be a legal ruling.

Conspiracy Theories Abound

While the High Court of Bombay weighed the facts of the Maggi case, the affair stirred up debate around what was already a hot-button question in India: Is the presence of big foreign companies good or bad for the country?

Enter the yogi.

Suspicion of multinational companies in India is deeply rooted and very much alive—perhaps most prominently in the hulking yet limber form of Baba Ramdev, a colorful yoga guru and the face of India’s fastest-growing consumer goods company. Ramdev, 50, has long hair and a dark, bushy beard; he became famous in the early 2000s by leading TV yoga workouts in a saffron-colored loincloth. He parlayed his celebrity into the launch of Patanjali Ayurved, an ayurvedic medicine company, in 2006. Before long his followers were flocking to his ever-expanding line of all-natural products. (Toothpaste and ghee are his top sellers.) The goods are dirt cheap and marketed as swadeshi , or Indian. Increasingly he is taking market share from global giants like Colgate and Unilever.

Ramdev is vociferously anti–multinational corporations. He rails against the money they drain from the country and the ills they’ve introduced to India, calling Coca-Cola and Western-style processed foods “slow poison.”

As Nestlé’s troubles escalated, the coincidences were too good for many on social media to resist. Twitter and WhatsApp buzzed with giddy speculation that Baba Ramdev himself was behind the scandal or that he would swoop in to the rescue by launching his own Patanjali instant noodles. Finally, in mid-June, Ramdev said that after months of research—wholly unrelated to Maggi—Patanjali planned to launch a line of locally sourced whole-wheat noodles in late 2015.

The guru didn’t miss a chance to get in a shot at Nestlé. “Maggi should apologize,” said Ramdev in early June. “And if the government takes strong measures, the company should be asked to pack up and leave the country. We don’t need a company that serves poison.”

On June 30 the High Court of Bombay offered Nestlé some relief: It allowed the company to resume manufacturing Maggi for export. Singapore and Australia had already pronounced the noodles safe for sale and consumption; Canada, the U.K., and the U.S. would do so as well in the following weeks. For many it raised the question: If Maggi was fine for consumers in those developed nations, why not for the people of India?

Others reached a different conclusion. Of course the exported product was safe, I was told by some people—a few of them Indian officials. Nestlé sells a higher-quality product in other countries, these people claimed; in India, where the population and authorities have traditionally been less discerning, it pushes substandard goods. Not only was Nestlé guilty of selling tainted noodles, these folks asserted, but it did so willfully and then engaged in a cover-up.

“Maggi should apologize, and if the government takes strong measures, the company should be asked to pack up and leave the country. We don’t need a company that serves poison.” — Baba Ramdev

That’s just a single strain of conspiracy theory among many. One of the most common things I was told while in India was some form of this: “There are some politics behind this case.” When I’d push people further on this point, accounts diverged wildly. One person might point to strained diplomatic relations between India and Switzerland over banking secrecy. Another might suggest that Nestlé had been set up after refusing to make “political contributions” to corrupt officials.

The possibilities are endless, and most of them have been debated in some corner of India. But Kilbinder Dosanjh, a director at risk-consulting firm Eurasia Group, says the Maggi case is less a story of unique political dynamics than a classic tale of institutional weakness in India. In that way it is the opposite of conspiracy. It’s about regulatory incoherence. “When it came to tests of these noodles, there were multiple levels of institutions dealing with this,” he says. “You had state and central bodies that complicated who was responsible and what standards they were using.”

Good News at Last

While Nestlé waited for the high court to render its verdict, the company took steps to up its communications game. Though it stayed silent on matters before the court, the company created a Maggi information hub on its website, where visitors could view its lab reports and read up on MSG. It publicized its recall efforts. And it invited journalists to tour its Quality Assurance Center in Moga.

Nestlé India also got a boost in late July from the arrival of Suresh Narayanan as its new top executive. Narayanan, 56, had spent the previous decade covering the globe for Nestlé. In April 2015 he’d been transferred to the Philippines after a lively four-year stint running Nestlé’s businesses in Egypt, Libya, and Sudan. But after the Maggi situation blew up, Narayanan got a call from his boss, Wan Ling Martello, the head of Nestlé Asia, Oceana, and Africa, asking him to move again. “I need you in India,” she told him.

The ebullient Narayanan, an Indian himself, had begun his career with Nestlé in the sales department in Gurgaon, and he still knew many of Nestlé India’s employees and the market. He had also proved to be an expert and versatile crisis manager. In Singapore, for example, he took over just as the financial crisis hit and still managed to grow sales in a mature market.

Narayanan wasted no time signaling that he would be leading Nestlé India in a very different way. He gave an interview to the Indian press the same day he arrived. A week later he spoke for 45 minutes live on CNBC, declaring his first mission was “to bring Maggi back.”

“When you manage an issue in India, you’re dealing with a certain set of known entities but also a much larger set of unknown entities. It’s like being shot at in the dark.” — Suresh Narayanan

His words proved prophetic.

On Aug. 13, a couple of weeks after Narayanan’s arrival, the High Court of Bombay delivered its judgment in the case. In a ruling that was unusually long—145 pages—the court sided with Nestlé. It overturned the ban, declaring that the FSSAI had acted arbitrarily. The judgment allowed Nestlé India to resume sales of Maggi, on the condition that another round of samples—90 in all—be tested for lead and cleared in the following six weeks by three labs accredited by the National Accreditation Board for Testing and Calibration Laboratories.

Nestlé India’s executives had crowded into the boardroom to watch TV coverage of the decision. Narayanan was texting updates to Martello back in Vevey until it became clear to him that it was good news. Then he sent her one more message: “ WE WON WE WON WE WON WE WON, ” and added smiley emoticons.

A Nation Gets Its Noodles Back

The relaunch of Maggi was scheduled for Monday, Nov. 9—five months and four days after the government ban, and an auspicious day in India known as Dhanteras. The first day of Diwali, the Hindu festival of lights, it carries associations of well-being and prosperity.

Nestlé had gotten official clearance from the Bombay High Court in October and spent weeks preparing. Nestlé India was eager to build demand after the product’s months-long absence from shelves. The company’s marketers began with young people, who had proved a forgiving and fiercely loyal fan base; they had been clamoring for Maggi’s return practically since the trouble began, and for them Nestlé launched a #WeMissYouToo campaign on YouTube—a series of minute-long spots starring handsome bachelors who are forlorn without their instant noodles. To court mothers, it got real moms to give video testimonials about why they still trusted Maggi.

For symbolic reasons Nestlé delivered the product as widely as possible on day one. Trucks loaded with instant noodles and festooned Indian-style with colorful tassels and decals rolled out just after midnight. The no added msg label on the packages had been replaced by a new logo reading “Our commitment to goodness you can always trust.” Narayanan gave dozens of interviews repeating some version of a simple message: “Maggi is safe, was safe, and always will be safe.” There were Maggi-eating celebrations at Nestlé sites across the country.

They celebrated in Vevey too. Maggi was served at an executive board meeting. The instant-noodle dish was the second of four courses, between Terrine Saint-Hubert and fried sturgeon served with crème de caviar d’Aquitaine.

Taking the Long View

Maggi noodles may be back on shelves, but the Maggi saga is far from over. The Monday after the big relaunch, the FSSAI filed an appeal of the Bombay court decision in India’s Supreme Court. There is another legal case pending. On Aug. 12, 2015, the day before the ban was lifted, the government had sued Nestlé India for $99 million. The complaint, lodged on behalf of consumers by the National Consumer Disputes Redressal Commission, alleged the same basic things the FSSAI’s order had: that the company had sold unsafe products and misled consumers through its advertising practices. Both cases continue to work their way through the Indian courts.

Meanwhile, Nestlé has a wily new competitor in the noodle market. A week after the Maggi relaunch, Baba Ramdev introduced his new Patanjali noodles. They’re made from atta, a “healthier” whole-wheat flour, and cost 10 rupees less than Nestlé’s Maggi equivalent. As the robed guru whipped up a batch for media onlookers in a Delhi mall, he noted that Patanjali’s product was lead- and MSG-free. Then, for the cameras, he enthusiastically slurped some down, noodles tangling in his beard.

The fates of the other characters in the Maggi drama have diverged. Sanjay Singh, the inspector whose curiosity about MSG kicked off the whole crisis, received a public service award in Barabanki in January for his good work. Malik, the CEO of the FSSAI, was shifted out of his position a month after the Bombay High Court decision and transferred to India’s central planning commission, where he was given a job as an “additional secretary.” Meanwhile, some government officials remain incensed with Nestlé, particularly over the arrogance of its recent marketing efforts—the “Maggi is safe, was safe, and always will be safe” language irks them. For those burnishing Brand India, the episode can’t go away fast enough.

As for Nestlé, Bulcke and his team acknowledge that they didn’t play the Maggi crisis perfectly. But they defend their decision-making generally—particularly the choice to privilege communication with regulators over reaction to the media. They talk about how they managed the crisis with long-term rather than short-term outcomes in mind. Nestlé has been in India for 100 years, Bulcke stresses, and it wants to be there 100 more. You can’t achieve that in a country if you blow up your relationship with the regulators.

In any case, the global giant was given an important lesson in the unpredictability of one its most promising growth markets. “When you manage an issue in India, you’re dealing with a certain set of known entities but also a much larger set of unknown entities,” says Narayanan, the Nestlé India managing director. “Who is going to set off what bullet at you is what you have to keep anticipating. Where the hell is this next bullet going to come from? It’s like being shot at in the dark.”

The next time Nestlé hears gunfire, maybe it will be ready to duck.

A version of this article appears in the May 1, 2016 issue of Fortune with the headline “Nestlé’s Hot Mess.”

• Harvard Business School →
• Faculty & Research →
• February 2016 (Revised June 2016)
• HBS Case Collection

The Maggi Noodle Safety Crisis in India (A)

• Format: Print
• | Language: English
• | Pages: 23

Related Work

• Faculty Research

The Maggi Noodle Safety Crisis in India (B)

• February 2016

The Maggi Noodle Safety Crisis in India (C)

The maggi noodle safety crisis in india (a), (b), and (c).

• The Maggi Noodle Safety Crisis in India (B)  By: Karthik Ramanna and Radhika Kak
• The Maggi Noodle Safety Crisis in India (C)  By: Karthik Ramanna and Radhika Kak
• The Maggi Noodle Safety Crisis in India (A), (B), and (C)  By: Karthik Ramanna
• The Maggi Noodle Safety Crisis in India (A)  By: Karthik Ramanna and Radhika Kak

• Search Menu

Sign in through your institution

• Browse content in Arts and Humanities
• Browse content in Archaeology
• Anglo-Saxon and Medieval Archaeology
• Archaeological Methodology and Techniques
• Archaeology by Region
• Archaeology of Religion
• Archaeology of Trade and Exchange
• Biblical Archaeology
• Contemporary and Public Archaeology
• Environmental Archaeology
• Historical Archaeology
• History and Theory of Archaeology
• Industrial Archaeology
• Landscape Archaeology
• Mortuary Archaeology
• Prehistoric Archaeology
• Underwater Archaeology
• Zooarchaeology
• Browse content in Architecture
• Architectural Structure and Design
• History of Architecture
• Residential and Domestic Buildings
• Theory of Architecture
• Browse content in Art
• Art Subjects and Themes
• History of Art
• Industrial and Commercial Art
• Theory of Art
• Biographical Studies
• Byzantine Studies
• Browse content in Classical Studies
• Classical History
• Classical Philosophy
• Classical Mythology
• Classical Numismatics
• Classical Literature
• Classical Reception
• Classical Art and Architecture
• Classical Oratory and Rhetoric
• Greek and Roman Epigraphy
• Greek and Roman Law
• Greek and Roman Archaeology
• Greek and Roman Papyrology
• Late Antiquity
• Religion in the Ancient World
• Social History
• Digital Humanities
• Browse content in History
• Colonialism and Imperialism
• Diplomatic History
• Environmental History
• Genealogy, Heraldry, Names, and Honours
• Genocide and Ethnic Cleansing
• Historical Geography
• History by Period
• History of Agriculture
• History of Education
• History of Emotions
• History of Gender and Sexuality
• Industrial History
• Intellectual History
• International History
• Labour History
• Legal and Constitutional History
• Local and Family History
• Maritime History
• Military History
• National Liberation and Post-Colonialism
• Oral History
• Political History
• Public History
• Regional and National History
• Revolutions and Rebellions
• Slavery and Abolition of Slavery
• Social and Cultural History
• Theory, Methods, and Historiography
• Urban History
• World History
• Browse content in Language Teaching and Learning
• Language Learning (Specific Skills)
• Language Teaching Theory and Methods
• Browse content in Linguistics
• Applied Linguistics
• Cognitive Linguistics
• Computational Linguistics
• Forensic Linguistics
• Grammar, Syntax and Morphology
• Historical and Diachronic Linguistics
• History of English
• Language Acquisition
• Language Variation
• Language Families
• Language Evolution
• Language Reference
• Lexicography
• Linguistic Theories
• Linguistic Typology
• Linguistic Anthropology
• Phonetics and Phonology
• Psycholinguistics
• Sociolinguistics
• Translation and Interpretation
• Writing Systems
• Browse content in Literature
• Bibliography
• Children's Literature Studies
• Literary Studies (Asian)
• Literary Studies (European)
• Literary Studies (Eco-criticism)
• Literary Studies (Modernism)
• Literary Studies (Romanticism)
• Literary Studies (American)
• Literary Studies - World
• Literary Studies (1500 to 1800)
• Literary Studies (19th Century)
• Literary Studies (20th Century onwards)
• Literary Studies (African American Literature)
• Literary Studies (British and Irish)
• Literary Studies (Early and Medieval)
• Literary Studies (Fiction, Novelists, and Prose Writers)
• Literary Studies (Gender Studies)
• Literary Studies (Graphic Novels)
• Literary Studies (History of the Book)
• Literary Studies (Plays and Playwrights)
• Literary Studies (Poetry and Poets)
• Literary Studies (Postcolonial Literature)
• Literary Studies (Queer Studies)
• Literary Studies (Science Fiction)
• Literary Studies (Travel Literature)
• Literary Studies (War Literature)
• Literary Studies (Women's Writing)
• Literary Theory and Cultural Studies
• Mythology and Folklore
• Shakespeare Studies and Criticism
• Browse content in Media Studies
• Browse content in Music
• Applied Music
• Dance and Music
• Ethics in Music
• Ethnomusicology
• Gender and Sexuality in Music
• Medicine and Music
• Music Cultures
• Music and Religion
• Music and Culture
• Music and Media
• Music Education and Pedagogy
• Music Theory and Analysis
• Musical Scores, Lyrics, and Libretti
• Musical Structures, Styles, and Techniques
• Musicology and Music History
• Performance Practice and Studies
• Race and Ethnicity in Music
• Sound Studies
• Browse content in Performing Arts
• Browse content in Philosophy
• Aesthetics and Philosophy of Art
• Epistemology
• Feminist Philosophy
• History of Western Philosophy
• Metaphysics
• Moral Philosophy
• Non-Western Philosophy
• Philosophy of Science
• Philosophy of Action
• Philosophy of Law
• Philosophy of Religion
• Philosophy of Language
• Philosophy of Mind
• Philosophy of Perception
• Philosophy of Mathematics and Logic
• Practical Ethics
• Social and Political Philosophy
• Browse content in Religion
• Biblical Studies
• Christianity
• East Asian Religions
• History of Religion
• Judaism and Jewish Studies
• Qumran Studies
• Religion and Education
• Religion and Health
• Religion and Politics
• Religion and Science
• Religion and Law
• Religion and Art, Literature, and Music
• Religious Studies
• Browse content in Society and Culture
• Cookery, Food, and Drink
• Cultural Studies
• Customs and Traditions
• Ethical Issues and Debates
• Hobbies, Games, Arts and Crafts
• Natural world, Country Life, and Pets
• Popular Beliefs and Controversial Knowledge
• Sports and Outdoor Recreation
• Technology and Society
• Travel and Holiday
• Visual Culture
• Browse content in Law
• Arbitration
• Browse content in Company and Commercial Law
• Commercial Law
• Company Law
• Browse content in Comparative Law
• Systems of Law
• Competition Law
• Browse content in Constitutional and Administrative Law
• Government Powers
• Judicial Review
• Local Government Law
• Military and Defence Law
• Parliamentary and Legislative Practice
• Construction Law
• Contract Law
• Browse content in Criminal Law
• Criminal Procedure
• Criminal Evidence Law
• Sentencing and Punishment
• Employment and Labour Law
• Environment and Energy Law
• Browse content in Financial Law
• Banking Law
• Insolvency Law
• History of Law
• Human Rights and Immigration
• Intellectual Property Law
• Browse content in International Law
• Private International Law and Conflict of Laws
• Public International Law
• IT and Communications Law
• Jurisprudence and Philosophy of Law
• Law and Politics
• Law and Society
• Browse content in Legal System and Practice
• Courts and Procedure
• Legal Skills and Practice
• Legal System - Costs and Funding
• Primary Sources of Law
• Regulation of Legal Profession
• Medical and Healthcare Law
• Browse content in Policing
• Criminal Investigation and Detection
• Police and Security Services
• Police Procedure and Law
• Police Regional Planning
• Browse content in Property Law
• Personal Property Law
• Restitution
• Study and Revision
• Terrorism and National Security Law
• Browse content in Trusts Law
• Wills and Probate or Succession
• Browse content in Medicine and Health
• Browse content in Allied Health Professions
• Arts Therapies
• Clinical Science
• Dietetics and Nutrition
• Occupational Therapy
• Operating Department Practice
• Physiotherapy
• Radiography
• Speech and Language Therapy
• Browse content in Anaesthetics
• General Anaesthesia
• Browse content in Clinical Medicine
• Acute Medicine
• Cardiovascular Medicine
• Clinical Genetics
• Clinical Pharmacology and Therapeutics
• Dermatology
• Endocrinology and Diabetes
• Gastroenterology
• Genito-urinary Medicine
• Geriatric Medicine
• Infectious Diseases
• Medical Oncology
• Medical Toxicology
• Pain Medicine
• Palliative Medicine
• Rehabilitation Medicine
• Respiratory Medicine and Pulmonology
• Rheumatology
• Sleep Medicine
• Sports and Exercise Medicine
• Clinical Neuroscience
• Community Medical Services
• Critical Care
• Emergency Medicine
• Forensic Medicine
• Haematology
• History of Medicine
• Browse content in Medical Dentistry
• Oral and Maxillofacial Surgery
• Paediatric Dentistry
• Restorative Dentistry and Orthodontics
• Surgical Dentistry
• Medical Ethics
• Browse content in Medical Skills
• Clinical Skills
• Communication Skills
• Nursing Skills
• Surgical Skills
• Medical Statistics and Methodology
• Browse content in Neurology
• Clinical Neurophysiology
• Neuropathology
• Nursing Studies
• Browse content in Obstetrics and Gynaecology
• Gynaecology
• Occupational Medicine
• Ophthalmology
• Otolaryngology (ENT)
• Browse content in Paediatrics
• Neonatology
• Browse content in Pathology
• Chemical Pathology
• Clinical Cytogenetics and Molecular Genetics
• Histopathology
• Medical Microbiology and Virology
• Patient Education and Information
• Browse content in Pharmacology
• Psychopharmacology
• Browse content in Popular Health
• Caring for Others
• Complementary and Alternative Medicine
• Self-help and Personal Development
• Browse content in Preclinical Medicine
• Cell Biology
• Molecular Biology and Genetics
• Reproduction, Growth and Development
• Primary Care
• Professional Development in Medicine
• Browse content in Psychiatry
• Addiction Medicine
• Child and Adolescent Psychiatry
• Forensic Psychiatry
• Learning Disabilities
• Old Age Psychiatry
• Psychotherapy
• Browse content in Public Health and Epidemiology
• Epidemiology
• Public Health
• Browse content in Radiology
• Clinical Radiology
• Interventional Radiology
• Nuclear Medicine
• Radiation Oncology
• Reproductive Medicine
• Browse content in Surgery
• Cardiothoracic Surgery
• Gastro-intestinal and Colorectal Surgery
• General Surgery
• Neurosurgery
• Paediatric Surgery
• Peri-operative Care
• Plastic and Reconstructive Surgery
• Surgical Oncology
• Transplant Surgery
• Trauma and Orthopaedic Surgery
• Vascular Surgery
• Browse content in Science and Mathematics
• Browse content in Biological Sciences
• Aquatic Biology
• Biochemistry
• Bioinformatics and Computational Biology
• Developmental Biology
• Ecology and Conservation
• Evolutionary Biology
• Genetics and Genomics
• Microbiology
• Molecular and Cell Biology
• Natural History
• Plant Sciences and Forestry
• Research Methods in Life Sciences
• Structural Biology
• Systems Biology
• Zoology and Animal Sciences
• Browse content in Chemistry
• Analytical Chemistry
• Computational Chemistry
• Crystallography
• Environmental Chemistry
• Industrial Chemistry
• Inorganic Chemistry
• Materials Chemistry
• Medicinal Chemistry
• Mineralogy and Gems
• Organic Chemistry
• Physical Chemistry
• Polymer Chemistry
• Study and Communication Skills in Chemistry
• Theoretical Chemistry
• Browse content in Computer Science
• Artificial Intelligence
• Computer Architecture and Logic Design
• Game Studies
• Human-Computer Interaction
• Mathematical Theory of Computation
• Programming Languages
• Software Engineering
• Systems Analysis and Design
• Virtual Reality
• Browse content in Computing
• Business Applications
• Computer Security
• Computer Games
• Computer Networking and Communications
• Digital Lifestyle
• Graphical and Digital Media Applications
• Operating Systems
• Browse content in Earth Sciences and Geography
• Atmospheric Sciences
• Environmental Geography
• Geology and the Lithosphere
• Maps and Map-making
• Meteorology and Climatology
• Oceanography and Hydrology
• Palaeontology
• Physical Geography and Topography
• Regional Geography
• Soil Science
• Urban Geography
• Browse content in Engineering and Technology
• Agriculture and Farming
• Biological Engineering
• Civil Engineering, Surveying, and Building
• Electronics and Communications Engineering
• Energy Technology
• Engineering (General)
• Environmental Science, Engineering, and Technology
• History of Engineering and Technology
• Mechanical Engineering and Materials
• Technology of Industrial Chemistry
• Transport Technology and Trades
• Browse content in Environmental Science
• Applied Ecology (Environmental Science)
• Conservation of the Environment (Environmental Science)
• Environmental Sustainability
• Environmentalist Thought and Ideology (Environmental Science)
• Management of Land and Natural Resources (Environmental Science)
• Natural Disasters (Environmental Science)
• Nuclear Issues (Environmental Science)
• Pollution and Threats to the Environment (Environmental Science)
• Social Impact of Environmental Issues (Environmental Science)
• History of Science and Technology
• Browse content in Materials Science
• Ceramics and Glasses
• Composite Materials
• Metals, Alloying, and Corrosion
• Nanotechnology
• Browse content in Mathematics
• Applied Mathematics
• Biomathematics and Statistics
• History of Mathematics
• Mathematical Education
• Mathematical Finance
• Mathematical Analysis
• Numerical and Computational Mathematics
• Probability and Statistics
• Pure Mathematics
• Browse content in Neuroscience
• Cognition and Behavioural Neuroscience
• Development of the Nervous System
• Disorders of the Nervous System
• History of Neuroscience
• Invertebrate Neurobiology
• Molecular and Cellular Systems
• Neuroendocrinology and Autonomic Nervous System
• Neuroscientific Techniques
• Sensory and Motor Systems
• Browse content in Physics
• Astronomy and Astrophysics
• Atomic, Molecular, and Optical Physics
• Biological and Medical Physics
• Classical Mechanics
• Computational Physics
• Condensed Matter Physics
• Electromagnetism, Optics, and Acoustics
• History of Physics
• Mathematical and Statistical Physics
• Measurement Science
• Nuclear Physics
• Particles and Fields
• Plasma Physics
• Quantum Physics
• Relativity and Gravitation
• Semiconductor and Mesoscopic Physics
• Browse content in Psychology
• Affective Sciences
• Clinical Psychology
• Cognitive Neuroscience
• Cognitive Psychology
• Criminal and Forensic Psychology
• Developmental Psychology
• Educational Psychology
• Evolutionary Psychology
• Health Psychology
• History and Systems in Psychology
• Music Psychology
• Neuropsychology
• Organizational Psychology
• Psychological Assessment and Testing
• Psychology of Human-Technology Interaction
• Psychology Professional Development and Training
• Research Methods in Psychology
• Social Psychology
• Browse content in Social Sciences
• Browse content in Anthropology
• Anthropology of Religion
• Human Evolution
• Medical Anthropology
• Physical Anthropology
• Regional Anthropology
• Social and Cultural Anthropology
• Theory and Practice of Anthropology
• Browse content in Business and Management
• Business Strategy
• Business History
• Business Ethics
• Business and Government
• Business and Technology
• Business and the Environment
• Comparative Management
• Corporate Governance
• Corporate Social Responsibility
• Entrepreneurship
• Health Management
• Human Resource Management
• Industrial and Employment Relations
• Industry Studies
• Information and Communication Technologies
• International Business
• Knowledge Management
• Management and Management Techniques
• Operations Management
• Organizational Theory and Behaviour
• Pensions and Pension Management
• Public and Nonprofit Management
• Social Issues in Business and Management
• Strategic Management
• Supply Chain Management
• Browse content in Criminology and Criminal Justice
• Criminal Justice
• Criminology
• Forms of Crime
• International and Comparative Criminology
• Youth Violence and Juvenile Justice
• Development Studies
• Browse content in Economics
• Agricultural, Environmental, and Natural Resource Economics
• Asian Economics
• Behavioural Finance
• Behavioural Economics and Neuroeconomics
• Econometrics and Mathematical Economics
• Economic Systems
• Economic Methodology
• Economic History
• Economic Development and Growth
• Financial Markets
• Financial Institutions and Services
• General Economics and Teaching
• Health, Education, and Welfare
• History of Economic Thought
• International Economics
• Labour and Demographic Economics
• Law and Economics
• Macroeconomics and Monetary Economics
• Microeconomics
• Public Economics
• Urban, Rural, and Regional Economics
• Welfare Economics
• Browse content in Education
• Adult Education and Continuous Learning
• Care and Counselling of Students
• Early Childhood and Elementary Education
• Educational Equipment and Technology
• Educational Strategies and Policy
• Higher and Further Education
• Organization and Management of Education
• Philosophy and Theory of Education
• Schools Studies
• Secondary Education
• Teaching of a Specific Subject
• Teaching of Specific Groups and Special Educational Needs
• Teaching Skills and Techniques
• Browse content in Environment
• Applied Ecology (Social Science)
• Climate Change
• Conservation of the Environment (Social Science)
• Environmentalist Thought and Ideology (Social Science)
• Management of Land and Natural Resources (Social Science)
• Natural Disasters (Environment)
• Pollution and Threats to the Environment (Social Science)
• Social Impact of Environmental Issues (Social Science)
• Sustainability
• Browse content in Human Geography
• Cultural Geography
• Economic Geography
• Political Geography
• Browse content in Interdisciplinary Studies
• Communication Studies
• Museums, Libraries, and Information Sciences
• Browse content in Politics
• African Politics
• Asian Politics
• Chinese Politics
• Comparative Politics
• Conflict Politics
• Elections and Electoral Studies
• Environmental Politics
• Ethnic Politics
• European Union
• Foreign Policy
• Gender and Politics
• Human Rights and Politics
• Indian Politics
• International Relations
• International Organization (Politics)
• Irish Politics
• Latin American Politics
• Middle Eastern Politics
• Political Methodology
• Political Communication
• Political Philosophy
• Political Sociology
• Political Theory
• Political Behaviour
• Political Economy
• Political Institutions
• Politics and Law
• Politics of Development
• Public Administration
• Public Policy
• Qualitative Political Methodology
• Quantitative Political Methodology
• Regional Political Studies
• Russian Politics
• Security Studies
• State and Local Government
• UK Politics
• US Politics
• Browse content in Regional and Area Studies
• African Studies
• Asian Studies
• East Asian Studies
• Japanese Studies
• Latin American Studies
• Middle Eastern Studies
• Native American Studies
• Scottish Studies
• Browse content in Research and Information
• Research Methods
• Browse content in Social Work
• Addictions and Substance Misuse
• Adoption and Fostering
• Care of the Elderly
• Child and Adolescent Social Work
• Couple and Family Social Work
• Direct Practice and Clinical Social Work
• Emergency Services
• Human Behaviour and the Social Environment
• International and Global Issues in Social Work
• Mental and Behavioural Health
• Social Justice and Human Rights
• Social Policy and Advocacy
• Social Work and Crime and Justice
• Social Work Macro Practice
• Social Work Practice Settings
• Social Work Research and Evidence-based Practice
• Welfare and Benefit Systems
• Browse content in Sociology
• Childhood Studies
• Community Development
• Comparative and Historical Sociology
• Disability Studies
• Economic Sociology
• Gender and Sexuality
• Gerontology and Ageing
• Health, Illness, and Medicine
• Marriage and the Family
• Migration Studies
• Occupations, Professions, and Work
• Organizations
• Population and Demography
• Race and Ethnicity
• Social Theory
• Social Movements and Social Change
• Social Research and Statistics
• Social Stratification, Inequality, and Mobility
• Sociology of Religion
• Sociology of Education
• Sport and Leisure
• Urban and Rural Studies
• Browse content in Warfare and Defence
• Defence Strategy, Planning, and Research
• Land Forces and Warfare
• Military Administration
• Military Life and Institutions
• Naval Forces and Warfare
• Other Warfare and Defence Issues
• Peace Studies and Conflict Resolution
• Weapons and Equipment

• < Previous chapter
• Next chapter >

15 Nestle Maggi-Noodles Banned in India

• Published: August 2022
• Cite Icon Cite
• Permissions Icon Permissions

Maggi seems to be just that perfect quick—snack between meals and is so easy to make the kids sometimes make it alone. At the end of May 2015, India’s Food safety administration (FDA) ordered Nestle India to recall its popular Maggi noodles after tests showed that the product contained high levels of lead and MSG. Nestle, the makers of Maggie noodles, had to withdraw tons of product stocks from its distribution and sales outlets to basically avoid a direct clash with regulatory authorities and re—establish by immediate corrective steps and repeat lab tests to prove to the authorities that all necessary corrective steps have been taken on priority. The case talks about dent in customer confidence due to actions by the FAD officials were quite damaging, and it cost Nestle time, money, and patience for re—entry.

Personal account

• Sign in with email/username & password
• Get email alerts
• Save searches
• Purchase content
• Activate your purchase/trial code
• Add your ORCID iD

Institutional access

Sign in with a library card.

• Sign in with username/password
• Recommend to your librarian
• Institutional account management
• Get help with access

Access to content on Oxford Academic is often provided through institutional subscriptions and purchases. If you are a member of an institution with an active account, you may be able to access content in one of the following ways:

IP based access

Typically, access is provided across an institutional network to a range of IP addresses. This authentication occurs automatically, and it is not possible to sign out of an IP authenticated account.

Choose this option to get remote access when outside your institution. Shibboleth/Open Athens technology is used to provide single sign-on between your institution’s website and Oxford Academic.

• Click Sign in through your institution.
• Select your institution from the list provided, which will take you to your institution's website to sign in.
• When on the institution site, please use the credentials provided by your institution. Do not use an Oxford Academic personal account.
• Following successful sign in, you will be returned to Oxford Academic.

If your institution is not listed or you cannot sign in to your institution’s website, please contact your librarian or administrator.

Enter your library card number to sign in. If you cannot sign in, please contact your librarian.

Society Members

Society member access to a journal is achieved in one of the following ways:

Sign in through society site

Many societies offer single sign-on between the society website and Oxford Academic. If you see ‘Sign in through society site’ in the sign in pane within a journal:

• Click Sign in through society site.
• When on the society site, please use the credentials provided by that society. Do not use an Oxford Academic personal account.

If you do not have a society account or have forgotten your username or password, please contact your society.

Sign in using a personal account

Some societies use Oxford Academic personal accounts to provide access to their members. See below.

A personal account can be used to get email alerts, save searches, purchase content, and activate subscriptions.

Some societies use Oxford Academic personal accounts to provide access to their members.

Viewing your signed in accounts

Click the account icon in the top right to:

• View your signed in personal account and access account management features.
• View the institutional accounts that are providing access.

Signed in but can't access content

Oxford Academic is home to a wide variety of products. The institutional subscription may not cover the content that you are trying to access. If you believe you should have access to that content, please contact your librarian.

For librarians and administrators, your personal account also provides access to institutional account management. Here you will find options to view and activate subscriptions, manage institutional settings and access options, access usage statistics, and more.

Our books are available by subscription or purchase to libraries and institutions.

• About Oxford Academic
• Publish journals with us
• University press partners
• What we publish
• New features  
• Open access
• Rights and permissions
• Accessibility
• Advertising
• Media enquiries
• Oxford University Press
• Oxford Languages
• University of Oxford

Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide

• Copyright © 2024 Oxford University Press
• Cookie settings
• Cookie policy
• Privacy policy
• Legal notice

This Feature Is Available To Subscribers Only

Sign In or Create an Account

This PDF is available to Subscribers Only

For full access to this pdf, sign in to an existing account, or purchase an annual subscription.

Analysis of the Bombay High Court Verdict in the Maggi Case

Nestle India Limited filed a writ petition in the Bombay High Court primarily on the contentions that the natural principles of justice were not adhered by not providing show cause notices before the two impugned orders were passed [1] and that the labs where the tests were conducted were either not accredited by NBAL or lacked accreditation for testing lead. The former was contested by the FSSAI while it was also stated by them that the decision was taken in public interest and it was sufficient even if one of the samples tested above the permissible limits. FSSAI believed that the Food Safety and Standards Act 2006 provides them the authority to carry out the analysis and hence, the Authority could base their decisions on the analysis carried out by them. [2]

Appeal to Forum v Writ Petition

The Respondent also contended that if the petitioner was aggrieved by the impugned order, they should have appealed under Section 46(4) of the Act than prematurely file a writ petition and clarified that it was a 15 days show cause notice as to why its product approval should not be cancelled and as such, no such ban issued. This point was dismissed by the Court referring to the notice and it was held that the authority indeed imposed a ban. [3] The court also held that even assuming that alternate remedies are available to the petitioner, they are entitled to approach the High Court when there are allegations of natural principles of justice. The court in very clear words stated [4] :

It is, therefore, quite well settled that whenever allegation is made that there is violation of principles of natural justice the Petitioner is entitled to challenge the said order and, secondly, in the present case, the impugned order (Exhibit-A) cannot be strictly said to be a show cause notice since the order imposes a ban on manufacture, sale, distribution of 9 variants of Maggi Noodles. It, therefore, imposes a complete ban on the product.

Destroyed Evidence?

There were also allegations that Nestle had tried to destroy evidence by burning packets of Maggi. The petitioner stated that they were adhering by the orders of the Authority which directed it to destroy all food packets. The Court also dismissed the allegation of suppression of facts by the postal records submitted by the petitioner which stated that the notice was received after the petition was filed [5] :

There is, therefore, absolutely no substance in the submissions made by the learned Senior Counsels appearing on behalf of Respondent Nos. 1 and 4 that there was suppression of fact and an attempt to destroy the evidence by the Petitioner.

Nationwide Ban: Unfettered Powers

Another contention by the respondents was that Nestle had represented that the products contain less than 0.1 ppm lead and hence, even if the lead content was within the permissible limits of 2.5 ppm such a ban was justified for misrepresentation and breach of trust. [6] Hence, their argument was that being a Section 22 [7] product (according to The Food Safety and Standards Act 2006), even if taken together (as opposed to individual packets) the company couldn’t go back to its commitments where it annexed the Codex standards. This entire argument was dismissed by the court and it stated that no such interpretation of rules exist in the six decades of the apex court’s existence in the country so as to ban a particular product for that reason.

The court extended its reasoning to provide a restricted interpretation that the authority doesn’t have unfettered powers to pass orders and must abide by the limited power mandated by the authority. The court further went to every specific article from Section 22 to Section 30 and gave categorical explanations to prove that the impugned orders’ power weren’t derived from any of them.

The central theme of the court’s argument was that the degree of natural justice required for an order varies with the threshold level of the order and that the principle of “audi alteram partem” has been recognised both in administrative actions and quasi-judicial actions. The court stated that the principles of natural justice can only be ignored if the actions undertaken are done in interest of public health under certain conditions:

“…Commissioner of Food Safety would be compelled to pass immediate order of prohibition in the interest of public health to manufacture, sale of food etc. and similar order can be passed under section 34 when it is found that there is contamination in food which is such an eminent threat to the public health that immediate order of prohibition has to be passed…” [8]

The Verifiability of Food Labs

The petitioner’s argument for that the analysis of all food samples by the food analyst be done only in accredited laboratories approved by NABL in order to put reliance on the reports found support from the bench. He said since the samples were open, the possibility of contamination and evidence-tampering cannot be ruled out for the Kolkata lab. As noted in the judgment, “He submitted that the analysis of the food has to be done in the Food Laboratory accredited by NABL and recognized by the Food Authority under section 43 of the Act which provision is a mandatory provision and non-compliance of the mandatory provision would vitiate the entire process of analysis.’ He also successfully pointed out the discrepancies of the tests conducted in the Avon Food Lab (Pvt) Ltd. This was contended by the respondents who argued that the Food analyst was empowered to conduct tests in any lab whatsoever and refused to accept the reports submitted by the company alleging that there was every possibility of the reports being tampered. However, the Court held that Section 43 of the Act requires that the food analyst undertakes the test in a laboratory accredited by NABL and recognised by the Food Authority and notified by it.

In a long followed dictum, the court reiterated the need to question the unfettered discretions enjoyed by people in power for too long and the wide interpretation given to terms such as “Compensation” in such instances. Hence, the orders were set aside basing on Article 14, 19 and 21 and stated that the orders were passed arbitrarily and lacking transparency and in utter violation of the principles of natural justice. The court clearly stated [9] :

Though Respondents have been shouting from roof top that their action was in public interest as they found that the food which was contaminated by lead beyond permissible limit was unsafe for human consumption, they promptly swung into action and banned the product. The said tall claim has not been substantiated by them before us.

The court also included the “paradoxical consequence” [10] argument to justify its position that such an emergency ban should only operate in a local area as opposed to a nationwide ban. The court also clarified about the “no added MSG” claim by stating that it was not the case that MSG was added but that the MSG content existed within the natural products. Since the petitioner also made a statement to remove the declaration of “no added MSG” the allegation of misbranding also no longer survives. Hence, the claim for the impugned order was not substantiated by the company. The fact that eight out of nine variants of the products had been granted approval further vindicated the stance of Nestle India.

The court further laid down its concern for public health and even though they set aside the impugned orders, they recommended the petitioner to send 5 samples of their products to three Food laboratories accredited and recognised by NABL and enlisted their names and addresses (Maggi passed the test given by Supreme Court as mentioned in Chapter 1).

The High Court of Bombay based its decision primarily in the irregularities by the authorities and the haphazard manner in which the entire episode was undertaken. It also rightly pointed out the absurd interpretations for the act brought about by the authorities time and again to ban products. It was a well-balanced judgment that attempted to clear questions on public health by recommending the test while at the same time, ensuring that public authorities are not given power without responsibility to pass unreasonable orders and undertake arbitrary actions.

While there might be some criticism that the judiciary assumed the responsibility of a food regulator while recommending tests in particular labs, it needs to be considered that in the absence of such a directive, it would have left imperative questions on public health and trust unanswered. The judgment rightly ensured that food safety and consumer trust aren’t tampered with and simultaneously ensured that the basic principles of rule of law and fundamental rights enshrined in the constitution aren’t diluted.

[1] Nestle India Limited v The Food Safety and Standards Authority of India and Ors. [2015(6)ABR74] pp 4(1)

[2] Ibid pp. 33.

[3] Ibid pp. 38.

[4] Ibid pp. 39.

[5] Ibid pp. 45.

[6] Ibid pp. 47.

[7] Section 22 of the Food Safety and Standards Act: Genetically modified foods, organic foods, functional foods, proprietary foods, etc.

[8] Nestle India Limited v The Food Safety and Standards Authority of India and Ors. [2015(6)ABR74] pp 83.

[9] Ibid pp. 101.

This article is authored by Ritesh Patnaik, student of B.A. LL.B (Hons.) at National Law University Delhi.

Also Read – Quarantine Laws Preventing Spread of COVID-19 Around the World

Share This Post

Related posts.

Leave a Comment Cancel reply

• AskNestle Back Go to AskNestle
• Beverages Back Go to Beverages
• Nestlé Breakfast Cereals Back Go to Nestlé Breakfast Cereals
• Chocolates and Confectionery Back Go to Chocolates and Confectionery
• Dairy Back Go to Dairy
• Foods Back Go to Foods
• Nutrition Back Go to Nutrition
• Vending and Food Services Back Go to Vending and Food Services
• Nestle Health science Back Go to Nestle Health science
• Imports Back Go to Imports
• Tea Exports Back Go to Tea Exports
• Nestlé Ad Campaigns Back Go to Nestlé Ad Campaigns

Nestlé in Society

• Creating Shared Value Back Go to Creating Shared Value
• Our commitments Back Go to Our commitments
• Nutritious products Back Go to Nutritious products
• Sugar, sodium & fats Back Go to Sugar, sodium & fats
• Whole grain, vegetables & fibre Back Go to Whole grain, vegetables & fibre
• Simplifying ingredient lists Back Go to Simplifying ingredient lists
• Micronutrient fortification Back Go to Micronutrient fortification
• Nestlé Nutritional Profiling System Back Go to Nestlé Nutritional Profiling System
• Nutritional information Back Go to Nutritional information
• Marketing healthy choices Back Go to Marketing healthy choices
• Project Jagriti Back Go to Project Jagriti
• Healthy Kids Programme Back Go to Healthy Kids Programme
• Serve Safe Food Back Go to Serve Safe Food
• Start Health Stay Healthy Back Go to Start Health Stay Healthy
• Supporting breastfeeding Back Go to Supporting breastfeeding
• Healthy food environments Back Go to Healthy food environments
• Building nutrition knowledge Back Go to Building nutrition knowledge
• Farm economics Back Go to Farm economics
• Responsible sourcing Back Go to Responsible sourcing
• NESCAFE plan Back Go to NESCAFE plan
• Project Vriddhi Back Go to Project Vriddhi
• Human rights impacts Back Go to Human rights impacts
• Workers' livelihoods Back Go to Workers' livelihoods
• Our culture of integrity Back Go to Our culture of integrity
• Youth employment Back Go to Youth employment
• Training Back Go to Training
• Gender balance Back Go to Gender balance
• Healthy workplaces Back Go to Healthy workplaces
• Reporting compliance violations Back Go to Reporting compliance violations
• Water efficiency Back Go to Water efficiency
• Water policies & stewardship Back Go to Water policies & stewardship
• Supplier engagement Back Go to Supplier engagement
• Access to clean drinking water Back Go to Access to clean drinking water
• Access to sanitation Back Go to Access to sanitation
• Climate change leadership Back Go to Climate change leadership
• Proactive engagement on climate change Back Go to Proactive engagement on climate change
• Packaging Back Go to Packaging
• Food loss & waste Back Go to Food loss & waste
• Sustainable consumption Back Go to Sustainable consumption
• Natural capital Back Go to Natural capital
• Nestlé for Healthier Kids Back Go to Nestlé for Healthier Kids
• Nestlé’s Moga Factory Back Go to Nestlé’s Moga Factory
• Measuring Creating Shared Value Report Back Go to Measuring Creating Shared Value Report
• Case Studies Back Go to Case Studies

Eating nutritious food, incorporating physical activities is the key to maintain healthy lifestyle.

• Healthy Living Back Go to Healthy Living
• Nutrition Basics Back Go to Nutrition Basics
• Recipes and Cooking Back Go to Recipes and Cooking
• Understanding Food Labels Back Go to Understanding Food Labels
• Family, fun and food Back Go to Family, fun and food
• Myths and Tips Back Go to Myths and Tips
• Nutrition, Health And Wellness @ Nestlé Back Go to Nutrition, Health And Wellness @ Nestlé
• Nutrition For Runners Back Go to Nutrition For Runners

Nestlé India - Directors and officers, key figures, stock and financials, Code of Business Conduct.

• Our Business Back Go to Our Business
• Letter of Appointment of Independent Directors Back Go to Letter of Appointment of Independent Directors
• Composition of Board of Directors and its Committees Back Go to Composition of Board of Directors and its Committees
• Policies/Code of Conduct Back Go to Policies/Code of Conduct
• Criteria for making payments to Non-Executive Directors Back Go to Criteria for making payments to Non-Executive Directors
• Familarization Programme Back Go to Familarization Programme
• Contact details for Investor services Back Go to Contact details for Investor services
• Notice of Board meeting Back Go to Notice of Board meeting
• Financial results Back Go to Financial results
• Annual Report Back Go to Annual Report
• Shareholding pattern Back Go to Shareholding pattern
• Analyst Meet Back Go to Analyst Meet
• Related to AGM Notice Back Go to Related to AGM Notice
• Related to Postal Ballot Back Go to Related to Postal Ballot
• Related to Scheme of Arrangement Back Go to Related to Scheme of Arrangement
• Other public Notices Back Go to Other public Notices
• Credit Rating Back Go to Credit Rating
• Secretarial Compliance Report Back Go to Secretarial Compliance Report
• Policy for determination of materiality for disclosure of event or information Back Go to Policy for determination of materiality for disclosure of event or information
• Contact details for the key managerial Personnel authorized for determining materiality of an event or information as per Reg. 30 of SEBI LODR Back Go to Contact details for the key managerial Personnel authorized for determining materiality of an event or information as per Reg. 30 of SEBI LODR
• Disclosures under Reg. 30(8) Back Go to Disclosures under Reg. 30(8)
• Annual Return Back Go to Annual Return
• Familiarisation Programme Back Go to Familiarisation Programme
• Key Financial Figures Back Go to Key Financial Figures
• Analysts' Meet Back Go to Analysts' Meet
• Investor Services Back Go to Investor Services
• Shareholders Meeting Back Go to Shareholders Meeting
• Stock Listing Back Go to Stock Listing
• Dividends Back Go to Dividends
• Annual Reports Back Go to Annual Reports
• Annual Returns Back Go to Annual Returns
• Shareholding Pattern Back Go to Shareholding Pattern
• Financial Results Back Go to Financial Results
• Financial Press Releases Back Go to Financial Press Releases
• AGM Notices Back Go to AGM Notices
• Postal Ballot Back Go to Postal Ballot
• Business Responsibility Reports Back Go to Business Responsibility Reports
• Public Notice Back Go to Public Notice
• Corporate Governance Report Back Go to Corporate Governance Report
• Secretarial Audit Reports Back Go to Secretarial Audit Reports
• Royalty Back Go to Royalty
• Disclosure of Related Party Transactions Back Go to Disclosure of Related Party Transactions
• Scheme of Arrangement Back Go to Scheme of Arrangement
• Media Library Back Go to Media Library
• Android KitKat Back Go to Android KitKat
• WEF In India Back Go to WEF In India
• 100 Years Back Go to 100 Years
• Archived Events Back Go to Archived Events
• Press Releases Back Go to Press Releases
• Special Announcements Back Go to Special Announcements
• Statements Back Go to Statements
• Media contacts Back Go to Media contacts
• Images Back Go to Images
• Videos Back Go to Videos
• MAGGI Noodles: Hon'ble Bombay High Court verdict

MAGGI Noodles: Hon'ble Bombay High Court verdict

Share this page

13 Aug 2015

The trust of our consumers and safety of our products are our utmost priorities across all the markets in which we operate.

Nestlé India respects the decision made on 13th August by the Hon'ble Bombay High Court to revoke the ban order passed by Food Safety and Standards Authority of India (FSSAI) and the Food and Drug Administration, Maharashtra on MAGGI Noodles and will comply with the order to undertake fresh tests.

Nestlé India remains committed to working with the FSSAI, FDA Maharashtra and other stakeholders.

It is Nestlé India’s endeavour to get MAGGI Noodles back on the shelves as soon as possible for the benefit of our consumers.

We await copy of the Judgment.

• S&P Dow Jones Indices
• S&P Global Market Intelligence
• S&P Global Mobility
• S&P Global Commodity Insights
• S&P Global Ratings
• S&P Global Sustainable1
• Investor Relations Overview
• Investor Presentations
• Investor Fact Book
• News Releases
• Quarterly Earnings
• SEC Filings & Reports
• Executive Committee
• Corporate Governance
• Merger Information
• Stock & Dividends
• Shareholder Services
• Contact Investor Relations
• Email Subscription Center
• Media Center

Nestlé welcomes Supreme Court ruling in Maggi case against Indian government

A Sports Team Navigates Business Through Disruptive Times

A Sports League Maximizes Revenue from Media Rights

Japan M&A By the Numbers: Q4 2023

Essential IR Insights Newsletter Fall - 2023

• 5 Jan, 2019
• Author Amanda Jean Dalugdug
• Theme Retail & Consumer Products

Nestlé India Ltd. on Jan. 3 welcomed the Indian Supreme Court's decision to reject interim orders made by the Indian consumer commission in 2015 against the consumer food and drinks company over its Maggi brand noodles.

In June 2015, the unit of Swiss consumer giant Nestlé SA decided to temporarily stop selling Maggi noodles in India after a government laboratory in Kolkata said it found MSG and high levels of lead in samples of the noodles.

Nestlé India destroyed more than 35,000 metric tons of the product shortly after the ban and sought a judicial review of the order with the Bombay High Court.

The National Consumer Disputes Redressal Commission, or NCDRC, filed a class action lawsuit against the company on Aug. 11, 2015. The commission, which was set up under India's Consumer Protection Act of 1986, claimed Nestlé India was behind "unfair trade practices, sale of defective goods and sale of goods to the public by selling Maggi Oats Noodles without product approval." The commission sought approximately 6.40 billion Indian rupees in damages on behalf of Indian consumers.

However, the High Court overturned the ban in August 2015, saying that the "principles of natural justice were not followed."

Nestlé India resumed selling Maggi noodles in the Indian market in November 2015 after three accredited laboratories, mandated by the High Court, certified that samples of the product were found to be safe for consumption.

In April 2016, Nestlé India said India's Central Food Technological Research Institute, or CFTRI, submitted analysis reports on Maggi noodles to India's Supreme Court. The reports found that 100% of the samples tested by the agency contained lead levels within permissible limits.

The company appealed to the High Court against two interim orders submitted by the NCDRC.

In response, the Supreme Court "has agreed with Nestle's contention and has set aside both the interim orders passed by NCDRC," the company said in a Jan. 3 stock exchange filing.

The court also ordered that the reports received from CFTRI to be the basis for proceedings before the NCDRC.

As of Jan. 2, US$1 was equivalent to 70.05 Indian rupees.

• Amanda Jean Dalugdug
• Retail & Consumer Products

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Nestle Maggi: The controversy surrounding Maggi Noodles

How maggi was able to regain its positioning in India

Related Papers

IJESMR Journal

A renowned comfort snack, a common household item, perfect synonym for noodles recently lost its sheen and pride it held among the other entire noodles brand. The favorite of all age groups has started facing ban from government authorities all over India. This project is an attempt to analyze the truth behind the 'Taste bhi, Health bhi' commitment of the brand.

Prateek Singh

Rise in the popularity of digital media has resulted in social media being used not only by individuals for networking purposes but also by brands for activities like promotion, starting conversations, and maintaining public relations with their patrons and followers alike. This rise has given more power to the user to produce and disseminate content making him a stakeholder with the power to dictate terms. In such an environment, it is only natural for brands to bear the brunt of any controversy online. This is a working paper involving a study of the use of social media in the Maggi controversy. To document a case study, a quantitative methodological approach was used. A content analysis of the Facebook page (Meri Maggi) and Twitter handle (@MaggiIndia) of Maggi India was done. In addition, a survey was conducted on a purposive sample of fifty respondents from the city of Mumbai. Results of the study project new media as an emerging source of news dissemination. It calls for a need to transform intangible digital offerings into tangibles ones apart from raising a number of questions on the social media consumption and food culture of the young Indian.

Journal ijmr.net.in(UGC Approved)

The goal of this research is to comprehend the influence of ban of Maggi noodles over consumer behavior and consumer shift. Maggie was banned in 2015 due to abnormal amounts of monosodium glutamate, and also up to 17 times lead that is safe for consumption and returned to market five months later. In this paper, the authors identify the response of consumers towards the relaunch of Maggi by developing hypothesis and using statistical tools. Findings of the study indicated that ban had a significant negative influence on consumer buying behavior and a major influence on consumer shift. Taste, quality and price are the most prominent factors that affect purchase decision according to this study. This study gives the significant discoveries of a survey led among several customers of Maggie to discover their state of mind towards its relaunch after the major controversies.

Bonfring International Journal

This study analyzes the effects of misleading celebrity endorsements on consumer's behavior in India. Celebrity endorsement is now a trend in India and is considered as one of the most powerful tools for product markets and brand building in this competitive era as stars are idolized and looked up in a country like India. The goal of every endorser is to convince the consumer that the said product will obtain the same result as the endorser, which plays a huge role in consumer's behavior. Previous studies have also showed that by making use of luminaries could upsurge the rate of acceptance among consumers towards a specific product. Misleading endorsements by these celebrities violate numerous rights of the consumers such as the right to information, choice, protection against unsafe goods and services as well as from unfair trade practices. To achieve the purpose, we choose to conduct a case study on Nestle's Maggi noodle brand to discuss, analyze and to draw conclusions. Finally, we have concluded that celebrities featuring in such commercials making false claims are accountable for their acts.

Nihar Gokhale

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

• India Today
• Business Today
• Harper's Bazaar
• Brides Today
• Cosmopolitan
• India Today Hindi
• Reader’s Digest
• Aaj Tak Campus

Maggi Controversy: Why it is being banned in India?

All about maggi controversy..

Listen to Story

It's hot, it's delicious, it's the ultimate comfort food and all it needs is just two minutes! But what is the fuss all about?

The Delhi government on June 3, 2015 decided to ban Swiss foods major Nestle Maggi noodles from its stores after it found lead and monosodium glutamate in the eatable beyond the permissible limit. The government announced a "15-day ban" on sale of Maggi noodles and has asked Nestle to recall current stocks from the market in that time and make new stock available, which will be allowed on shelves only after proper checks.

The decision was taken after it was found that 10 out of 13 samples tested for lead content in the popular food item were found to have amounts higher than permissible limits.

Some of India's famous film stars have also endorsed Maggi in television commercials aimed at promoting it. There is also news that a court in the state of Bihar on Tuesday ordered that a complaint be filed against three of Bollywood's biggest stars, Amitabh Bachchan, Madhuri Dixit and Preity Zinta, for acting as brand ambassadors for Maggi.

• K L University

Discover the world's research

• 25+ million members
• 160+ million publication pages
• 2.3+ billion citations

• Aishwarya Suraj Ray
• Nawal Kishor Sahu
• Et. al. Dr.Ennala Deepa
• Recruit researchers
• Join for free
• Login Email Tip: Most researchers use their institutional email address as their ResearchGate login Password Forgot password? Keep me logged in Log in or Continue with Google Welcome back! Please log in. Email · Hint Tip: Most researchers use their institutional email address as their ResearchGate login Password Forgot password? Keep me logged in Log in or Continue with Google No account? Sign up

Nestle declined to share details of its three-year plan framed at the Vevey conclaves. However, according to Narayanan, the company is looking at entering new business segments. That’s some change for the company, which stepped out of its comfort zone last in 1990 when it launched chocolates.

The reason: Narayanan wants to push what he calls “motion initiatives”, or initiatives that will help the company grow faster, that will gradually ensure the company’s portfolio is a lot more “balanced beyond the 30% dependence” that it has on Maggi today. The primary topic at Vevey even on the final day of the strategy meet was on how to restore Maggi noodles to its former glory in terms of market share, volume and trust.

The Nestle we are building is for another 100 years: MD Suresh Narayanan

Nestle’s concern is understandable. In the three decades since it launched Maggi noodles in India in 1983, Nestle had a smooth journey. Growth was steady— Maggi noodles earned 29.23% of Nestle India’s total sales in 2014, more than double the revenue share in 2001. Given the steady growth, the company even stopped looking at new segments or product categories. Maggi reached every nook and corner of the country—from remote villages in the plains to mountain ranges 18,000-ft above sea level, to become the most popular packaged snack in India.

Then came 5 June 2015 when Nestle India’s single-largest revenue earner faced a nationwide ban for a six-month period on allegations that it contained monosodium glutamate—a flavour enhancer—and lead in excess of prescribed limits. Between 5 June and 1 September 2015, Nestle had to recall 38,000 tonnes of Maggi noodles from millions of retail shelves, destroy them, tackle regulators and other government authorities to establish that Maggi was safe.

It was a body blow.

Version 2.0

Sitting in his glass-walled cabin at the five-storey Nestle building in Gurgaon overlooking the expressway to Delhi, Narayanan sounds confident: “We are reconstructing the demolished house.”

Enter new categories, build a balanced portfolio to reduce dependence on a single product, focus on health and nutrition, increase penetration in top towns, beef up advertising, and, most importantly, communicate much more with the consumers directly: that was the crux of what Narayanan returned with from Vevey. “Our actions for the next four years would set the tone for the next few decades,” he says.

Over the coming quarters, Nestle will enter a few of the five new product categories. These are: Nespresso (a coffee machine), Dolce Gusto (a coffee capsule system), pet care, healthcare and skincare. In August last year, it entered the cereals market with kids breakfast cereal Nestle Ceregrow. Its India portfolio has been crying out for expansion—out of its global bouquet of about 20,000-odd brands, it sells only a paltry 20 in India.

Work has already started. In the last two quarters, it has introduced some 30 products, including a few extensions of its coffee brand Nescafe, Nestle Ceregrow cereal, health food drink Nestle A+ Pro-Grow, a new range of Greek yoghurt called Nestle a+ Grekyo and a few new variants of Maggi instant noodles, and increased its focus on larger cities.

Unlike Maggi noodles, it won’t be a volume game anymore. The Swiss company wants to quickly leverage India’s rapid urbanization, tap the educated middle class and working women, as well as benefit from rising health awareness. All this, with an eye on maintaining profitability.

Narayanan cites research to show India’s top 600 cities will account for half of the consumption growth expected in the country over the next decade or so. “That’s clearly an opportunity for a company like ours. With the increasing participation of more women in the workforce, the need of the hour is a marriage between nutrition, health and convenience. And, that is the area Nestle is looking at in terms of product innovation as we go forward,” he adds.

While about 70% of India’s population still lives in its 638,000 villages, more than 55% of retailing actually happens in metros, mini-metros and tier-I cities, according to a Technopak study. These are the places where Nestle wants to go deeper, instead of stepping into places where logistics and supply chain are a big challenge. However, its products are available at 3.5 million of India’s estimated nine million retail outlets.

“Nestle’s products are relevant to a particular lifestyle, income group, and are urban-centric. Rapid urbanization is a huge opportunity as is the increasing participation of women in decision-making. We need more products that are convenience-based, nutrition-based and some in the on-the-go category. We need to bring products relevant for every segment,” says Narayanan.

This top-down approach has other reasons as well. First, it’s easier to convey the message and convince the (educated) middle class through marketing communications, advertising and social media campaigns. Plus, there’s better scope for “premiumization”. Nestle India is no longer doing what it has been doing well for the past few decades; rather, it needs to look at doing things that it has not done before. “Selectively seed them (products in new categories) in order to grow other frontiers of business, is what we are looking at. That’s why we are entering new categories and new businesses,” says Narayanan.

The branded packaged food market accounts for about 20% of the Rs3.2 trillion-a-year packaged consumer products market in India. The consumer packaged food market is projected to grow at around 12-15% annually till 2019, according to a September 2015 report by industry lobby Federation of Indian Chambers of Commerce and Industry and advisory firm KPMG.

At the same time, Nestle must find avenues beyond branded packaged food products—a segment that is estimated to get a new brand almost every day.

Even before the Maggi crisis blew up, Nestle India was struggling to stay in sync with India’s consumption story. It was losing market share in almost every product category—milk, baby food, coffee and chocolate. Except, of course, noodles. 

“During CY10-15, Nestle India lost market share in most categories (chocolates, coffee and baby food) due to new competition, lack of innovation and pricing errors,” Sunita Sachdev, an analyst with UBS Securities India, said in a note on 1 November 2016.

Still, people at Nestle and its shareholders were happy. The company had managed to keep profits growing. There was no need to fix something that wasn’t broken.

In its new avatar, Nestle India is flexible, responsive and result-oriented. Some of its recent launches have already started showing results—coffee and beverages have returned to growth, but milk and nutrition are still under stress. According to Narayanan, the boards of Nestle India and Nestle SA have agreed that there is a need to “accelerate the game in India”, which will require fresh investments in the existing portfolio, new products, renovation and innovation—all this aimed at doubling revenue in the country within four to five years.

“Nestle India has the potential to reach that level. But things change fast. As a company, we could not exploit the true potential of India as a market. But there’s no reason why it should not happen. If we can’t make this happen in India, where else?” asks Narayanan.

Financially, the company has seen better days. In calendar year 2014, Nestle India had a revenue of Rs9,854.84 crore. Sales for the year 2015 stood at Rs8,175.31 crore. In the quarter ended 30 September, it reported a revenue of Rs2,190.2 crore. It was Rs2,332.6 crore in the quarter ended 31 March 2015 (the quarter before the Maggi ban). Results for 2016 (full year) are to be declared on Wednesday.

Meanwhile, Nestle India has crunched the time between a product idea and its launch—from a typical 12-18 months to four-six months. And, more of its new products are developed based on local consumer insights, unlike earlier when more than 60% of its products had significant global interventions. It now needs to sustain this strategy for the next few years.

While analysts did not want to comment on the long-term projections of the company, they maintain a positive outlook on Nestle India.

“The slew of new launches is a step in the right direction in our view. However, in the coffee and beverages segment, we believe the move is behind time, given the company has lost its leadership position in terms of value share to HUL (Hindustan Unilever) in the category,” Sachdev of UBS said in a note last year. Nestle’s recent launches, brokerage firm IIFL in a report said, are likely to add 5-6% to the company’s sales by 2020.

Health is wealth

One of Nestle’s big bets is health. There are around 70 million diabetics in the country, about 60% of Indians are anaemic and a high percentage of children die of malnutrition, according to different studies. Meanwhile, consumers in general are becoming health conscious, more so in urban areas where Nestle India intends to focus.

“India is moving from a health and pleasure dimension to a healthy-indulgence dimension which is becoming a part of consumers’ choice. Products addressing issues related to diabetes, cardiovascular health, micronutrient deficiencies, fortifications—these would be another big platform for the company. These are some things that we have not done as aggressively as we should have,” says Narayanan.

To support all the above, it will leverage online sales—a route that it first used successfully when it relaunched Maggi noodles on Snapdeal. With this, Nestle will reach out to more consumers beyond the top towns, across the smaller towns and semi-rural areas at almost no cost. It has already partnered with top e-commerce platforms like Amazon, Snapdeal and BigBasket among others. It may also introduce online-only products in the health and nutrition category.

There will be some hits and some misses, admits Narayanan. Nestle in India will continue to support its “winners” that it already has in the marketplace through focused marketing and advertising push, and keeping a healthy balance between revenue and profit.

Like its parent, Nestle India will stay away from the pricing game to maintain profitability. It will not get into discounting or launch low-margin products. “If something needs a pricing game, we would rather keep that out of our focus. This is something that has helped us as an organization globally and we would replicate that in India as well,” adds Narayanan.

Advertising push

One of the key reasons why Nestle failed to tackle the Maggi mess—estimated to have caused the company a half a billion-dollar loss—is a communication failure.

The first thing Narayanan did after coming to India was to start communicating with all stakeholders—regulators, media, consumers. He ensured every question gets a satisfactory answer. And then, he pushed advertising.

Nestle India has always been a low spender on advertisements. Between 2010 and 2014, its spending on advertising and sales promotions was 4.2-4.8% of its total income, according to its annual reports. In 2015, the company spent Rs525.21 crore, or 6.42% of its total sales, on advertising and promotions. 

This is still lower than what its rivals spend. The country’s largest packaged goods company Hindustan Unilever Ltd (HUL) spent about 11.8% of revenue on advertising and sales promotions in the year ended 31 March 2016, and Britannia Industries Ltd, a relatively low spender, had shelled out 7.5% of revenue in advertising and sales promotions in fiscal year 2016.

“In the next four-five years, we would like to increase that (advertising spend) to at least 7-8% of turnover. For some (products), it may even go higher depending on the scale of the opportunity and competitiveness in the market that we would see,” says Narayanan. All major opportunities, he adds, will be “fully resourced, and fully funded” in terms of “both advertising and sales promotions”.

Still, Nestle India may not invest much in capacity enhancement. It has, as Narayanan says, invested close to Rs5,000 crore in capacity building and scale in the past four years. “Now, the time for us has come to be reaping the benefits of these investments. So during the next couple of years, the strategy clearly is incremental investments where we need new technology frontiers to be tapped into by the company,” he adds.

Untangling the noodles

According to executives from Nestle’s competitors in India, the Maggi fiasco blew up because the company was too confident and it failed to see when that confidence turned into complacency. Trade partners agreed. They say that before the Maggi crisis, Nestle suffered from a superiority complex, if not arrogance. None of these trade partners, however, want to go on record with their comments. However, the same people say the company has changed after the Maggi crisis.

“The Maggi crisis was as much about the perceived quality of the product as it was about the way communication was handled in the media, especially on social media. It’s important to reach out and explain—the first response on digital platforms is critical, given their unstructured and viral nature… Perhaps Nestle did not prioritize and publicize these steps enough, even if they were being actioned,” says Arvind Mediratta, managing director and chief executive officer of Metro Cash and Carry India Pvt. Ltd.

An executive working with a packaged food distribution firm agrees: “People at Nestle were arrogant and rigid about their business terms. Before the Maggi crisis, we had to tweak our models to get in sync with Nestle. At times, it was difficult. But things changed after the Maggi fiasco. The company has become aggressive, yet, more flexible. It has become easier to do business with Nestle. Now, Nestle’s salespeople push products—something I have never seen in the past two decades of my career,” says the executive, asking not to be named.

Nestle India general manager (foods) Maarten Geraets says he had never seen such a big crisis before. “The impact the Maggi issue had on the minds of people involved or associated with it was immense… Looking back, it has given us an opportunity to be more fast, focused and flexible; the innovation and renovation pipeline has been strengthened and that is evident,” he adds.

Nikhil Chand, general manager (chocolate and confectionery) at Nestle India, had joined the company after the Maggi ban. He saw the company manage its crisis from the outside. “Even from the outside, you could see the scale and impact. However, crisis is always an opportunity. The company has taken the challenge and is raising the game with innovation and renovation. There is increased focus on all our brands,” adds Chand, who was working with the Russian unit of Nestle during the Maggi crisis.

Simplifying organizational structure

Ever since it emerged from the crisis, Nestle India has been trying to get rid of its complexities (Narayanan calls it decomplexification) in its operational structure here.It has set a target to cut down layers to help reduce 30-40% of process time by cutting down the number of meetings and interventions by “half”, besides ensuring empowerment in decision-making (of the younger generation).

“We are trying to simplify our commercial structure, increase engagements with state governments, environmental gauging the market and also interfaces to get to know issues in real time—something we learnt from the Maggi issue,” says Narayanan.

Also, unlike the pre-crisis era, Nestle India now has people in each state to engage with local regulators and government authorities. It has also formed a new team for communications and public affairs at its head office.

Tough ride ahead

Starting calendar year 2012, Nestle India has been reporting a steep decline in volume of milk products, chocolates and coffee every year, and the company’s overall market share almost halved to around 15% in the past four-five years due to stiff competition from both multinationals and home-grown brands, the latest being yoga-guru-turned-businessman Baba Ramdev’s Patanjali Ayurved Ltd.

Besides directly attacking Nestle on various issues, Ramdev launched noodles just a week after Nestle India relaunched Maggi noodles in the market. Maggi, alone, has a few dozen competitors.

During the period when sale of Maggi noodles was banned, ITC Ltd’s Yippee noodles and Wai Wai noodles from Nepal’s CG Foods gained market share, filling a gap in a Rs3,182-crore noodles market.

In the segments Nestle intends to enter, the company will also have to fight established firms.

In skincare, Nestle will have to take on HUL that dominated the estimated Rs10,369-crore market with a 47.2% market share in 2015. Other key firms in the segment include L’Oréal, home-grown Himalaya Drug Co. and Emami, according to market research firm Euromonitor International.

The Rs1,736-crore breakfast cereals market in India is dominated by Kellogs (35.8% market share), Bagrry’s and PepsiCo India, says Euromonitor. Pet care, estimated at Rs1,712 crore, has rivals such a Mars Inc. and Indian Broiler Group in the segment.While Nestle leads the Rs2,501 crore instant coffee market with Nescafe, it has, in the recent past, lost market share to HUL’s Bru.

“Nestle’s focus on innovation has sharpened with many products at different stages of launch. The company’s new avatar is encouraging. With strong product launches, we remain positive on Nestle from two-three years’ perspective and are enthused by the aggression showed by the turnaround MD,” says Abneesh Roy, an analyst with Edelweiss Securities.

Nestle has, as credit rating firm Moody’s pointed out in a 30 September note, in recent years strengthened its nutrition, health and wellness business with a number of acquisitions. Nestle management has indicated an increasing focus in these segments for Indian market too. Its global rivals, like Danone and home-grown competitors like Himalaya and Patanjali have been strengthening their portfolios in the same areas as well. Earlier in January, Danone India managing director Rodrigo Lima said the company will launch about 10 new products (most of which would be in nutrition) in 2017 aiming to double country revenue by 2020. Danone has already shifted focus from dairy to nutrition in India for growth.

However, these are significant businesses for Nestle globally. In 2015, 13% of its total sales came from pet care (non-existent in India), 17% from nutrition and health science, 22% from powdered and liquid beverages, 8% from water (non-existent in India), 16% from milk products and ice creams, 14% from prepared dishes and cooking aids and 10% from confectionary.

“Nestle’s growth is increasingly driven by a portfolio of ‘billionaire’ brands and increasing presence in emerging markets. In addition to its core business, Nestle has a 23.4% stake in cosmetics giant L’Oreal, which was reduced in 2014 from 29.7%. The company also operates through joint ventures, such as Cereal Partners Worldwide with General Mills outside North America,” Moody’s said in the note.

Narayanan has his plate full. He will have to ensure that Nestle India does not get into the mode of “complacency” or “superiority” again.If Maggi crisis would not have happened, Nestle would probably have preferred to stay the way it was— confident, content, and non aggressive. As Mediratta of Metro Cash & Carry says, Nestle will be “more careful now about taking its success for granted”.

Can Nestle build another brand as big as Maggi noodles again in India? Narayanan does not think so, given the competitive landscape and the fast-changing consumer behaviour. But the endeavour of the local arm of the Swiss company is to spot at least one, if not two, brands that could emerge as big as Maggi noodles, at least in terms of sales numbers. Over the next 10 years, Nestle will slowly move from packaged food, to focus on health and nutrition products.

Was the Maggi crisis a blessing in disguise for Nestle in India? Narayanan smiles, his gaze settling on a desktop idol of Ganesha, the elephant god worshipped as a remover of obstacles.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News .

Get Instant Loan up to ₹10 Lakh!

• Enter Mobile Number

Employment Type

Most active stocks, bharat electronics, indian oil corporation, tata motors, market snapshot.

• Top Gainers
• 52 Week High

ADANI WILMAR

Jammu & kashmir bank, one 97 communications, trending in market.

• Stocks to Buy
• Stock market today
• Top Stock Recommendations
• Bansal Wire Industries IPO

Recommended For You

Gold prices, popular in companies, sbi q1 results: net profit rises marginally to ₹17,035.16 crore, nii up 5.7%, adani-backed ambuja cement to invest ₹1,600 crore in bihar: what it entails, wait for it….

Log in to our website to save your bookmarks. It'll just take a moment.