Maggi clears Bombay HC-mandated lab tests

The apex consumer court on Thursday ordered 13 samples of Nestle India’s Maggi instant noodles to be sent to a government-run research laboratory in Mysuru to test for lead and monosodium glutamate (MSG) levels.

As per the order of the Bombay High Court, the company has tested 90 samples of its six variety of noodles at three different laboratories. Nestle representatives, when contacted, said that “they were in consultation with their legal cell about the sale of the product in the hill state”.

The company in its tweet has said today that, “It’s official – your favourite instant noodles Maggi will be back soon”.

The Maggi brand – which entered the Swiss giant’s portfolio in 1947 when Alimenta SA merged with Nestle – has lost nearly $200 million in brand value because of the ban, said global valuation consultancy Brand Finance. The shares had plunged after an order by the Indian food safety regulator in June to recall the popular snack resulted in the company’s first ever quarterly loss in more than 15 years. In August, the court lifted the nation-wide ban and ordered a fresh test of samples to be conducted in three independent labs. “We are committed to reintroduce our beloved Maggi noodles at the earliest”, said a company representative.

But Nestle faces specific problems in Asia’s largest markets, China and India.

Nestlé said it will now commence manufacture of Maggi noodles.

Nestle noted that its business in India received a favourable ruling from the Bombay High Court and is actively engaging with the authorities to get the product back on the shelves. Excluding that adjustment, Nestle’s nine-month organic sales growth was 4.5 percent, estimated Jean-Philippe Bertschy, an analyst at Bank Vontobel in Zurich.

Nestle’s share price jumped 6.5 per cent after the news to touch Rs 6,669.95 in a Mumbai market whose benchmark Sensex was up 215.32 points or 0.8 per cent.