Nestle India has suffered badly in monetary terms as well as in terms of reputation after the Central Food Safety Regulator FSSAI banned it due to the presence of high levels of lead and MSG in its samples. The new Managing Director Suresh Narayanan has made it clear that bringing Maggi back in the market is his first priority.
While talking to some media persons, Suresh who took the new responsibility just five days back, said, “Task number one is to get Maggi back. That’s an important part of what I will be focussing on.”
He added on the issue of support from authorities, “It is my endeavour and those of my colleagues that we come to with respect, with cooperation, with support from the authorities, I am not in a confrontational frame.”
He also added,”…Nestle is a part of this country. We will be a part of this country as we have been for the last 100 years respecting the laws of the land and also respecting all the authorities. It is my hope that we are able to find a solution and we are able to move forward.”
Suresh didn’t make any statement regarding when the Maggi will be back on the shelves as the issue is pending in the court of Law. Nestle India has gone against FSSAI in the Bombay High Court regarding the ban introduced by FSSAI on Maggi.
Suresh also said that because of the ban on Maggi “a whole business segment has been dismantled” and “the whole system (of supply chain, manufacturing and distribution) is on freeze”.
Due to the ban of Maggi, Nestle India has suffered a loss of Rs.64.40 crore in the quarter starting from April and ending on June 30, 2015, a loss that they experienced after three decades. Nestle India earned a profit of Rs.287.86 crore in the quarter April from June, in the last financial year, 2014-15.
Suresh wants to introspect and find out where the things went wrong, he said “As a consequence of what has happened we will be having a process of introspection as an organisation, in terms of learning what about the thing that happened, what was the thing that was right what was the thing which we have done was not right.”
He further added, “This is going to be constituting the part of the learning of the organization. All this is internalised and taken for the future in terms of assuring that the company doesn’t come by the unfortunate incident again.”
He admitted to the fact the Maggi ban has impacted the sale of other products as well as they all were sold in almost same geographical location. Suresh also said that they will increase their promotions and marketing expenditure on the other product categories.
Besides, Nestle India is on the verge of introducing new items for overcoming loss.