Nestle India dropped 4.84% to Rs 6,501 at 12:15 IST onBSE after Food Safety and Standards Authority of India clarified that it has not given any clean chit regarding the safety of Nestle India's Maggi Noodles.
Food Safety and Standards Authority of India (FSSAI) issued clarification yesterday, 5 August 2015.
Meanwhile, the S&P BSE Sensex was down 43.93 points or 0.18% at 28,179.15.
On BSE, so far 11,139 shares were traded in the counter as against average daily volume of 16,547 shares in the past one quarter.
The stock hit a high of Rs 6,619 and a low of Rs 6,461.15 so far during the day. The stock had hit a record high of Rs 7,499.95 on 10 March 2015. The stock had hit a 52-week low of Rs 5,165.10 on 5 August 2014.
The stock had outperformed the market over the past one month till 5 August 2015, rising 10.66% compared with Sensex's 0.46% gain. The scrip had however underperformed the market in past one quarter, gaining 0.32% as against Sensex's 2.85% gain.
The large-cap company has equity capital of Rs 96.42 crore. Face value per share is Rs 10.
Food Safety and Standards Authority of India (FSSAI) made the above clarification after various reports appeared in certain section of the press and electronic Media yesterday, 5 August 2015, stated that the FSSAI or the FSSAI approved Lab found Maggi Noodles safe.
The stock had jumped 7.53% yesterday, 5 August 2015, after recent media reports suggested that a FSSAI approved laboratory of CFTRI has found Maggi Noodles in compliance with food safety standards on a testing of five samples sent by Goa Food and Drug Administration.
As regards the reports of Central Food Technological Research Institute (CFTRI), Mysore finding mentioned in the media reports the FSSAI said that as per factual position The Food Safety Department of Goa had drawn 5 samples of Maggi Noodles pursuant to a Communication dated 25 May 2015 from FSSAI to all the Food Safety Commissioners of states to draw samples and get the same tested. These samples were initially sent for testing in the Food & Drugs Laboratory of Goa. The reports of first test were received on 1 June, 2015. Observing that the Food Analyst of the said lab had wrongly taken the permissible limit of Lead as 10 PPM for the 'Tastemaker' as against the actual maximum permissible level of 2.5 PPM and the results reported by the lab did not contain specific Lead content found in the samples, the FSSAI had sought clarifications from the State Food Authority in this behalf.
The Food Safety Department of Goa subsequently sent one part of the said samples to the CFTRI, Mysore, where the Lead has been found to be within permissible limits. A perusal of the Test Results from CFTRI, Mysore shows that the said samples have not been tested for MSG.
In any case, the test results of Goa samples had no bearing on the order dated 5 June, 2015 as the samples tested qua Goa were not assumed to be unsafe while passing the Recall order by FSSAI. As such, the present test reports do not have any bearing on that order.
FSSAI said that it may also be noted that as per information shared by Nestle India with the FSSAI, Nestle India has been manufacturing Maggi Noodles at their factories situated at Village Mauliguem, Bicholim(Goa); Industrial Area, Nanjangud, Mysore; IEE, Pantnagar, SIDCUL, Rudrapur; Tahliwal, Haroli, Una (HP); Moga (Punjab) and one Co--?packer facility at Birshibpur, Howrah (West Bengal). Further, as informed by Nestle at the initial stage, all their Maggi Noodles for exports to 8 countries were manufactured only at the Bicholim (Goa) factory. Part of the local domestic supplies, including 4 out of 5 samples tested, were also from the product manufactured at the Bicholim (Goa) factory.
Further, FSSAI stated that news reports have also appeared in the media in past stating that Maggi Noodles were found to be safe in UK and Singapore. The FSSAI requested Nestle India to share the details of test reports of UK and Singapore. Nestle has not shared the details of the said test reports of UK and Singapore Regulators with the FSSAI stating that they do not have this information.
Meanwhile, Nestle India in a clarification issued during market hours yesterday, 5 August 2015 said that it has come to know about the above news item only through media reports and the company does not have any further information on this except what is reported in media. In case of receipt of any information, the company shall revert the same, Nestle India said. The company further said that it is not aware of any information that has not been announced to the stock exchange, which would explain the aforesaid movement in trading.
Nestle India had stopped supplies of Maggi Noodles in India after government of India and many states had banned the product after finding more than permissible levels of lead and MSG in it.
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