Maggi noodles to start sale in Nov, Nestle India rises 4%

Moneycontrol Bureau

Shares of Nestle India jumped 4 percent intraday as it is bringing back its controversy-laden Maggi Noodles this month."Now that the orders of Bombay High Court has been complied with, we will make our best endeavour to commence sale of Maggi Noodles Masala within this month as well as continue engaging with states where permissions are needed or specific directions may be necessary," Nestle India said in a statement to exchanges.The company is presently manufacturing Maggi noodles at three locations namely Nanjangud (karnataka), Moga (Punjab) and Bicholim (Goa). It also says that the company is in the process to obtain directions for commencing manufacture in Himachal Pradesh and Uttarakhand.In a press statement, Nestle India says that all samples of Maggi Noodles Masala have been cleared by three National Accreitation Board for Testing and Calibration Laboratories) accredited labs mandated by High Court to test newly manufactured samples."Nestle India has conducted 3500 tests representing over 200 million packs in both national and international accredited laboratories for testing and all reports are clear. Various countries including USA, UK, Singapore and Australia have found Maggi Noodles exported from India safe for consumption," the FMCG major clarifies.

Nestle India's September quarter was severely hit by absence of its popular brand Maggi noodles. Its Q3 net profit slumped 60 percent to Rs 124.2 crore from Rs 311.3 crore in corresponding quarter last fiscal. During the period, net sales fell 32.1 percent to Rs 1736.2 crore (year-on-year) largely due to impact of Maggi noodles.

In addition to loss of sales from the business disruption net sales worth Rs 15.32 crore have been reversed during the quarter in relation to Maggi Noodles stock being withdrawn from trade partners and market, the company said.