Brands
Q2-2015: Maggi ban hits Nestle for a loss of Rs 64.4 crores
BENGALURU: In what is probably a first, Nestle India Limited (Nestle) has reported a loss. A loss to the extent of Rs 64.4 crore in the quarter ended 30 June, 2015 (Q2-2015, Nestle’s financial year ends on 31 December). Hit by the Maggi Noodles controversy, exceptional items worth Rs 451.66 crore have wiped off the Rs 333.1 crore profit before exceptional items and tax that the company had earned.
The resulting loss of Rs 118.56 crore was mitigated by a tax credit of Rs 54.16 crore and the result was the above mentioned net loss of Rs 64.4 crore.
Last quarter, the company had reported a profit after tax (PAT) of Rs 320.28 crore and a PAT of Rs 287.86 crore in Q2-2014. For now the company has suspended manufacture of Maggi Noodles pending a decision of the Bombay High Court pertaining to a case it has filed regarding interpretation of the Foods Safety and Standards Act, 2011. The loss of the brand value, goodwill is difficult to calculate.
Note: 100,00,000 = 100 lakhs = 10 million = 1 crore
The company says that net sales worth Rs 288.38 crore has been reversed in the current quarter in relation to Maggi Noodles stock being withdrawn from trade partners and the market. The exceptional items amount of Rs 451.66 crore relates to estimates of loss on account of stocks withdrawn including incidental costs thereto and other costs incurred exclusively in the ordinary course of business, dealt with in with the Accounting Standard AS2 on valuation of inventories and Accounting Standard AS5 on net profit or loss for the period, prior period items and changes in accounting policies.
Let us look at the other numbers in Q2-2015 that have changed:
The company says that its net sales have been impacted by 20.1 per cent on account of Maggi Noodles. Nestle’s net domestic sales have decreased by 20.6 per cent , export sales decreased by 12.7 per cent impacted by lower coffee exports Russia, partly offset by export of milk and nutrition products to Bangla Desh. Nestle reported net Total Income from Operations (TIO) of Rs 1957.01 crore in the current quarter as compared to the Rs 2516.48 crore in the immediate trailing quarter and the Rs 2431.97 crore in the corresponding year ago quarter.
Total Expenditure (TE) in Q2-2015 declined to Rs 1634.38 crore as compared to the Rs 2000.75 crore in Q1-2015 and the Rs 2008.91 crore in Q2-2014. Nestle’s cost of materials consumed declined to Rs 718.80 crore in Q2-2015 as compared to the Rs 1110.50 crore in Q1-2015 and Rs 1123.47 crore in Q2-2014.
For the six month period ended 30 June, 2015 (6M-2015, YTD), Nestle reported a 5.9 per cent drop in TIO to Rs 4473.49 crore as compared to the Rs 4753.48 crore in 6M-2014. PAT in 6M-2015 declined to less than half (fell by 53.2 per cent) at Rs 255.88 crore as compared to the Rs 547.02 crore in the corresponding period of the previous year.
During 6M-2015, TE was lower at Rs 3635.13 crore as compared to the Rs 3913.13 crore in 6M-2014. The company’s cost of raw materials declined to Rs 1829.30 crore as compared to the Rs 2275.39 crore in 6M-2014.
Nestle’s board of directors at its meeting held on 29 July, 2015 based on the recommendation of the Nomination and Remuneration Committee, appointed Suresh Narayanan as managing director of the company effective from 1 August, 2015, subject to approvals. The company will seek consent of members by means of postal ballot on the proposal of the appointment of Narayanan as managing director. The board of directors has also appointed Abhinav Khosla, a chartered accountant, to act as the scrutinizer for conducting the postal ballot process in a fair and transparent manner.
Brands
Tanishq enters natural gemstone segment with Triptii Dimri campaign
Hues collection debuts ahead of Akshaya Tritiya, spotlighting self-expression
MUMBAI: Tanishq is stepping into the natural gemstone jewellery space with a new campaign featuring actor Triptii Dimri, marking a strategic expansion ahead of Akshaya Tritiya.
The launch introduces the brand’s latest collection, ‘Hues’, a design-led range crafted in 18kt gold and built around 100 percent natural gemstones. The move signals Tanishq’s intent to tap into a fast-growing category driven by consumers seeking authenticity, individuality and expressive styling.
Conceptualised by Lowe Lintas, the campaign film leans into the idea of colour as a form of self-expression. Set in a muted, almost paused world, the narrative comes alive as Dimri selects her jewellery, triggering a burst of colour that transforms her surroundings. The visual metaphor captures how jewellery is evolving from occasion-led adornment to a more personal, mood-driven choice.
The ‘Hues’ collection draws inspiration from the vibrancy of an Indian summer, featuring gemstones such as emeralds, amethysts, citrines, tourmalines and tanzanites. With sculptural forms and techniques like cabochon cuts and layering, the designs aim to bring depth, movement and a contemporary aesthetic to fine jewellery.
Titan Company Limited chief marketing officer Pelki Tshering said, “‘Hues’ marks a bold new chapter as we introduce natural gemstone jewellery in India. The collection reflects the evolving Tanishq woman who is expressive and confident, and seeks jewellery that mirrors her individuality.”
Sharing her perspective, Triptii Dimri said, “What I love about this collection is how it celebrates self-expression through colour. It feels less about occasion and more about expressing who you are in the moment.”
Priced from Rs 30,000, the collection is positioned for both everyday wear and special occasions. To coincide with the festive season, the brand is also rolling out promotional offers, including discounts on making charges and gold rate protection schemes.
With Hues, Tanishq is not just adding a new category but also reshaping how jewellery is worn and perceived, placing personal expression and colour firmly at the centre of its design philosophy.
