Nestle shares tumble after lead levels found above normal in Maggi samples
The Uttar Pradesh Food Safety and Drug Administration (FSDA) was the first to report high level of contamination in samples of the immensely popular Maggi two minute noodle. The FSDA say they have discovered unsafe levels of monosodium glutamate and lead in a number of Maggi Noodles they tested. The level of lead found in the noodles was 17 times higher than the limit.
Meanwhile shares of FMCG major Nestle India tumbled 10 percent in early trade Wednesday, At 11.15 am, Nestle India shares were down 7.8 percent at Rs 6,279 with 32,000 shares changing hands on the BSE as against two-week average volume of over 5,000 shares.According to analysts, Maggi noodles contribute over 20 per cent to Nestle’s revenues and a ban on the product could cause a huge dent to Nestle’s bottom line.
Following the UP government’s footsteps, governemnts of Kerela, Delhi and Uttarakhand too sent Maggi samples for lab tests.
Nestle denies recalling back Maggi packs
“We wish to state that we have till now not received any orders from any state/Centre FDA authorities to recall Maggi noodle products in the market except an order from the Uttar Pradesh FDA dated 30.04.2015 asking us to recall a batch of Maggi noodles manufactured in February, 2014 which had already reached the ‘Best Before date’ in November, 2014, Nestle said.
