New Delhi: A government laboratory that tested 29 samples of Maggi noodles at the instance of the Supreme Court has reported that the popular snack is safe for consumption, boosting prospects of the Indian arm of swiss multinational Nestle SA in a case before the court.

On Monday, Nestle India Ltd said that the tests conducted by the Central Food Technological Research Institute (CFTRI), Mysuru, found nothing wrong with the product.

The report was submitted to the court on 6 April and released to the company late last week.

The Indian arm of the Swiss packaged food firm said that the reports found lead levels for all samples within the permissible limit.

Mint has not seen a copy of the report.

On 13 January, the apex court asked the national research lab, approved by National Accreditation Board for Testing and Calibration Laboratories (NABL), to clarify if lead levels in the samples of Maggi noodles it tested on 16 Decemberwere within prescribed levels.

According to the Nestle India statement, all 29 samples of Maggi noodles (13 and 16 in two tranches) were collected by the relevant authorities following due process and then directly submitted to CFTRI.

“The CFTRI findings and the recent order dated 31 March 2016 issued by the Food Standards and Safety Authority of India (FSSAI), clarifies that additive monosodium glutamate, or MSG, can be used under Good Manufacturing Practices in permitted food products and there is no prescribed level," it added.

Nestle India was embroiled in a controversy after FSSAI banned the sale of Maggi on 5 June 2015, citing the presence of monosodium glutamate and excess lead.

The company could not sell the popular snack for six months in 2015. Nestle India relaunched Maggi noodles in November.

For year to December (Nestle India follows a January-December accounting year), net profit fell 52% to 563.27 crore.

In its annual results statement, Nestle India said, “The company faced an unusual situation with Maggi Noodles that impacted its operations during the 2nd, 3rd and 4th quarters. The results for the year and for the 4th quarter ended 31 December 2015 are not fully comparable with the results of the previous corresponding periods."

Equity analysts remain optimistic about prospects of Nestle India. “We remain positive on Nestle from 2-3 years’ perspective, being a strong play on urban revival. But over medium term, the company’s margins and volumes will remain under pressure," Abneesh Roy, analyst with Edelweiss Securities, said in a note on 15 February.

Shares of Nestle India fell 1.5% to 5,872.70 on BSE on Monday, while benchmark Sensex gained 1.41% at 25,022.16 points.

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