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Nestle India MD assures no job cuts in spite of the on-going Maggi ban; company tackles Nestum crisis

Nestle India MD assures no job cuts in spite of the on-going Maggi ban; company tackles Nestum crisis

Author | Sarmistha Neogy | Tuesday, Aug 04,2015 8:32 AM

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Nestle India MD assures no job cuts in spite of the on-going Maggi ban; company tackles Nestum crisis

Following the ban on Maggi, Nestle India’s, newly appointed MD, Suresh Narayanan assured that in spite of the on-going Maggi ban, there will be no job cuts. He said that every single permanent employee of the company will retain his/her job and that they have redeployed employees involved in manufacturing of the instant noodles for other operations, as per media reports.

He further expressed his desire of bringing Maggi back to the market as quickly as possible and also termed it as his first and primary mandate after joining the new position. He further highlighted that they are looking at opportunities to launch new products in order to overcome the huge loss, which the company has recently recorded.  Nestle India had replaced its previous Managing Director Etienne Benet on July 24 with Narayanan who was heading the company's operations in Philippines.

The company recently reported a loss of Rs 64.4 crore, their first quarterly loss in three decades, on the back of more than Rs 320 crore Maggi being recalled from the market after being termed as ‘unsafe’ by the Food Safety and Standards Authority of India (FSSAI). The company had also given Rs 20 crore to Ambuja Cements to destroy all the packets of Maggi.

Last week, there were several media reports on how worms were found in Nestle India’s baby cereal product ‘Nestum’ in Coimbatore, Tamil Nadu. A two-year old child, who was given the product, fell ill immediately after consumption and was diagnosed with food poisoning. The parents of the victim complained to the Food Safety Officer and in response to this, Nestle India has come out with a statement on the entire Nestum issue.

In the statement released by the company on August 1, the brand highlighted that the complaint is being investigated and they are fully cooperating with the authorities in these matters. The brand spoke about how safety and quality is never compromised at their end and also the manufacturing technology excludes the possibility of insects living and surviving in the sealed package in which this product is sold.

Here is an excerpt of the statement issued on August 1, 2015:

The brand has also released few tutorial ads titled ‘How to safely store the packaged food for your family’. It is a step-by-step instruction on how to store the food and keep it in a safe temperature, thus minimising the chances of the food from getting contaminated. The videos are being shared on the social networking pages of the brand and they are also being used as skippable ads on YouTube.

Click here to view the ad:

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