Maggi fallout was a result of Communication breakdown with the government: Nestle India CEO.

In  an exclusive interview to Business Insider the newly appointed CEO of FMCG giant Nestle said that the Maggi fiasco was the result of communication breakout between the Indian government and Nestle India. The executive said that Maggi was never adulterated or had lead . The company could not save its name because of poor PR management and mishandled communication between the company and food regulatory.

While speaking at a shared value conference in Gurgaon Mr Suresh Narayanan said “The testing of lead did involve sophisticated equipment, protocols that were fairly well defined and rigorous and also involved testing people who also had to be suitably qualified. All this meant that there were certain labs that were accredited by the NABL and we were only submitting most humbly to the food authorities, if you have wrong reading of the results, it can lead to misinterpretation of the safety and quality of our product. Nestle always chooses direct dialogue respectfully with the authorities which is what we chose at the beginning but it clearly led to a spiraling of the situation”.

He added ”We believe we have not violated any principle but fundamentally we have been reiterating the tenet of the organization that quality equals to trust. We wanted to get across to the FSSAI who for us will always remain the primary food regulator in the country. “Business can progress only when it embeds itself into the value of society and indulge in a form of engagement so that both can gain. We have been able to follow it with our milk, fossil and chicken farmers. Our own market capitalization has increased over 30 times in the last 20 years, and it has all happened because of efforts being put in not only the commercial areas of the operation but also because our partnership with society has evolved across all the countries that we are present in.”

Maggi has been successfully re-launched all across the country and the company plan to regain its brand value it lost during the tumultuous six months. The company is not alone this time as yoga guru promoted Patanjali launched a competitive safe magi few days ago .It will be difficult to comment on future but with the kind of fan following Maggi has in India it will be difficult for any other competitive brand to break its ground.


India to Welcome Back Maggi

Nestle India relaunched one of its most popular brand in the Country , “Maggi”.Maggi was banned 5 months ack due to suspected presence of excessive lead content.The Roll out of this popular food will be relaunched online with the help of popular marketplace Snapdeal .

“Most states do not have a ban on sale of Maggi noodles. For states where specific directions are required, we are engaging with them,” Nestle India said in a BSE filing. The Relaunch was announced by the company’s CMD Suresh Narayan – “Delighted to hand over Maggi Noodles to consumers to whom it belongs”.

Before the ban , the company manufatured the popular food at three locations : Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa).But after the BAN fiasco , it will be interesting to see whether the manufacturing will be continued in these plants or will be shifted somewhere else .