Nestle feels the heat over Maggi ban, stock crashes over 10%

Shares of Nestle India slumped over 10% on Wednesday amid growing concerns about safety standards of its popular Maggi noodles.

Shares of Nestle India slumped over 10% on Wednesday amid growing concerns about safety standards of its popular Maggi noodles.

The-Food-Safety-and-Drug-Administration-in-Uttar-Pradesh-said-high-lead-content-was-found-during-routine-tests-on-two-dozen-packets-of-instant-noodles-Maggi-manufactured-by-Nestle-in-India-Reuters-File-Photo

Samples of Maggi noodles taken in the national capital were found "unsafe" for consumption during tests by the Delhi government, which decided to initiate a case against Nestle India.

The stock plunged 10.10% to Rs 6,119.40 on BSE.

On NSE, it fell sharply by 10.2% to Rs 6,109.

A Bihar court on Tuesday ordered an FIR against Maggi brand ambassadors Amitabh Bachchan, Madhuri Dixit and Preity Zinta even as Nestle India faced trouble in more states.

It said officials of Nestle will be summoned in the next few days and more action may follow, including a possible ban on the famous '2-minute' instant noodle, after the final lab test report is received.

State-owned retail outlets in Kerala were asked to withdraw these products, and Karnataka and Haryana ordered random lifting of samples for scrutiny.

The Union Health ministry said it will look into the matter, taking note of various reports suggesting that the samples of Maggi contained higher-than-permissible levels of lead and monosodium glutamate.

Meanwhile, BSE has sought clarification from Nestle India with reference to reports that the Maggi samples failed safety test in Delhi.