Nestle India rejects Maggi infestation claims after FSSAI notice, says 'yet to receive complaint sample'

Nestle India on Friday dismissed claims of insect contamination in a Maggi noodles pack after the Food Safety and Standards Authority of India (FSSAI) flagged online grievances and sent an official inquiry.

Denying the accusations, the consumer goods major stated that its internal reviews and laboratory analyses revealed no signs of infestation within the affected lot or broader market stock. The company confirmed it has handed over a comprehensive defence—backed by manufacturing data, quality logs, and laboratory diagnostics—to regulators, emphasising that rigorous hygiene protocols are maintained throughout its production facilities.

"We categorically reject the allegations circulating on media basis an unverified account regarding the presence of infestation, allegedly on Maggi noodles," a Nestle India spokesperson said in a statement.

"We are yet to receive the complaint sample from the complainant as the account is unreachable," the statement added.

The controversy erupted when digital posts purported to show larvae in the product, sparking the regulatory intervention. This backlash ultimately dented shareholder confidence, dragging Nestle India's stock down 3.29 per cent. The shares, which launched trading at ₹1,431.10, finished the session lower at ₹1,375.70.

"Nestle India maintains stringent quality and food safety standards across its manufacturing operations. We remain fully transparent with the authorities and are confident that the facts and evidence will conclusively establish the truth of the matter," the spokesperson said.

"We have performed our quality analysis on batch and market samples, for a comprehensive investigation to FSSAI Accredited lab and the report confirms with the quality standards including confirmation of absence of infestation of any nature," the statement added.

Nestle India’s royalty payments to parent firm surge nearly 14%

Nestle India increased its general licence fee payments to Swiss parent company Société des Produits Nestlé S.A. by 13.91 per cent, reaching ₹1,024.5 crore in FY26, its latest annual filing reveals. The company also remitted ₹102.47 crore as withholding tax on these intellectual property fees for the fiscal year ending March 2026. By comparison, FY25 outlays stood at ₹899.41 crore for royalties alongside ₹89.71 crore in corresponding withholding taxes.

Through these core agreements, the Indian subsidiary secures vital access to the broader Nestlé Group’s proprietary technology, brands, and manufacturing innovations. This continuous pipeline of product advancements is funded via a flat royalty rate of 4.5 per cent on net sales. As of 31 March 2026, promoter groups Nestlé S.A. and Maggi Enterprises maintain a combined 62.76 per cent ownership stake in the domestic business.

"During the financial year ended 31st March 2026, there was no material modification in the terms and conditions of General Licence Agreements, as defined by the Audit Committee and specified in the RPT Policy," the annual report said.

Notably, investors recently blocked a corporate proposal that sought to hike this royalty rate by 0.15 per cent annually over five years to a peak of 5.25 per cent. Though slated for July 2024, it lacked shareholder approval. Meanwhile, Nestle India's FY26 sales revenues jumped 14.2 per cent to ₹23,071.46 crore, propelled by household brands like Maggi, Nescafe, KitKat, Milkmaid, and Cerelac.