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Nestle crisis gets murkier as jobless labourer commits suicide after Maggi ban

17-June-2015
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Nestle crisis gets murkier as jobless labourer commits suicide after Maggi ban

Nestle India seems to be getting deeper into the muddle everyday with no bout of relief coming from any side. According to a media report, a contract worker at Nestle in Uttarkhand’s Rudrapur plant committed suicide on Tuesday after he was laid off, following the Maggi ban. The report also stated that more than 1,000 workers have been laid off at the Nestle plant since the ban in Uttarakhand. 

In another case in Coimbatore, live worms were found in the Nestle Cerelac baby food. According to a report, the product which was purchased by an IT professional for his baby had an expiry only in February 2016.  A similar case was reported on June 2, when reports of live larvae was detected in the company’s baby milk powder Nestle NAN Pro 3 and being declared as unsafe by the Tamil Nadu Food Safety Wing.

The company’s stock on Tuesday slipped 3% to end at Rs 5,770 on the back of Nestle India making a statement on June 15 that the withdrawal of Rs 320 crore Maggi from the market has already started and it is being destroyed.
 

On June 5th, in spite of the company reconfirming that Maggi noodles are safe in India, the brand decided to withdraw all the products from the market, the reason being the current environment is not conducive to have the product around.
 

 

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Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.