An FSSAI-approved laboratory of Central Food Technological Research Institute (CFTRI) has found Maggi safe, as according to its report, the product has been found to be in compliance with the food safety standards of India.
Amidst reports of this clearance for Maggi, Nestle India surged over 10 per cent in trades on Wednesday, looking forward to registering its biggest daily percentage gain in 8 years. The stock surged 10.17 per cent to hit its intraday high of Rs 7,000 on the BSE.
The company had to take back 23,000 tonnes of Maggi between June and July, due to reports of excess lead in the instant noodles. As a result, the company posted a net loss of Rs 64.40 crore for the June quarter, compared with a profit of Rs 287.9 crore in the year-ago period. The company incurred a one-time loss of Rs 451.70 crore for the quarter due to the Maggi controversy.
It has been noted that the prepared dish segment contributes nearly 30 per cent to the company’s overall revenues, while Maggi forms approximately 25 per cent of overall revenues. The brand perception has been negatively impacted and even if Maggi clears legal obstacles, it will take some time to win back consumer trust.
CFTRI had tested five samples sent by Goa Food and Drug Administration when Maggi was banned in June.