Shares of Nestlé India fell over 3% on Friday after the Food Safety and Standards Authority of India (FSSAI) issued a notice to the company regarding concerns linked to its popular instant noodle brand, Maggi. The decline in the stock came amid broader market gains, highlighting investor reaction to fresh regulatory scrutiny.
The FSSAI notice was triggered by allegations that insects or larvae were found inside a packet of Maggi noodles. Following these complaints, the regulator sought a detailed Action Taken Report (ATR) from Nestlé India, including vendor details, internal quality-control logs for the batch in question, and information on corrective steps taken to prevent similar issues in the future.
Nestlé India’s stock declined as much as 3.26% to Rs 1,376 per share during the trading session, while the broader Nifty 50 index was up 1.76% at the same time. The contrasting movement underscored how company-specific regulatory concerns weighed on sentiment despite overall market strength.
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The food safety regulator also took note of complaints circulating on social media and issued notices to multiple entities, including Nestlé India, fast-food chain KFC, online retailer Flipkart, and food brand Open Secret. The actions form part of a wider inquiry into alleged hygiene and quality lapses across different food business operators.
In a related development, KFC’s outlet at MVR Mall in Eluru, Andhra Pradesh, also received a notice regarding alleged unhygienic conditions. Devyani International, which operates KFC outlets in India, said it would investigate the allegations and respond to the regulator. Meanwhile, Open Secret was issued a notice concerning its “Un-junked Dates” product, which was allegedly found to contain insects and was delivered via Flipkart Minutes.
FSSAI has asked all concerned companies to submit detailed responses, including quality-control records, supply chain documentation, and corrective measures taken. Further action will be considered after reviewing the submitted reports.
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