Brands
Nestle India recalls Maggi from shelves; maintains it’s safe
MUMBAI: It comes as no surprise that Nestle Global CEO Paul Bulcke is in India for damage control and takes stock of the situation here. Having reduced production by a third, sales halved for the brand with a 75 per cent market share and market price plunging by nine per cent in a day, Nestle India’s Maggi is indeed seeing a slow boil.
In a statement, the MNC said that it had decided to withdraw the product from shelves across India.
Addressing the media in a press conference held in Delhi today, Bulcke said that the company applied the same quality standards everywhere in the world. “We do not add MSG in Maggi noodles and it is safe for consumption in India,” he said.
Speaking about recalling the product from the market, Bulcke said, “What we do here is only with the consumer in mind. I don’t feel this is the right environment to have the product on shelves.”
Additionally, India’s central food safety regulator Food Safety and Standards Authority of India (FSSAI) has now ordered Nestle India to recall nine Maggi variants from the market.
Justifying its stance Nestle has said in an earlier statement that the batch in which the UP government found lead was an expired batch. The company’s reasoning remains restricted to testing the product in their labs and some external labs as well. However, as many as six Indian state governments have not accepted their testing and have called for a ban for the noodles brand.
“We are aware of media reports that say a case has been filed against us by the authorities in Uttar Pradesh. On receipt of the official notice we will take appropriate action under the guidance of our legal advisors. We cannot comment any further at this stage,” the company had said.
The company, like its CEO Bulcke, has maintained that there was no added flavour to its product. “We do not add the flavour enhancer MSG (E621) to Maggi Noodles in India. However, the product contains glutamate from hydrolysed groundnut protein, onion powder and wheat flour. Glutamate produces a positive result in a test for MSG,” said Nestle India.
In light of the trust of its consumers and the safety of its products being Nestle’s first priority, recent developments and unfounded concerns about the product has led to an environment of confusion for the consumer, to such an extent that the product has been withdraw from the shelves, despite the company claiming it to be safe.
While it is unlikely that this controversy will die down in “2 Minutes,” Maggi Noodles nonetheless promises to come back in the market as soon as Nestle India takes corrective measures in order to get out of this imbroglio.
After all the hullabaloo about Nestle withdrawing nine variants of its noodle brand from the shelves, the latest development in the Maggi controversy is that the government has asked the company to stop further production, processing, import, distribution and sale of the product.
The FMCG major was also asked to withdraw and recall the food product “Maggi Oats Masala Noodles with Tastemaker” and any other product for which risk assessment has not been undertaken and product approval granted.
The FSSAI did not find a satisfactory response from Nestle India’s representatives, who were given a hearing on 4 June by FSSAI chairman and CEO to seek their response in the matter and hence this decision was taken.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
