PTI
New Delhi
Nestle India shares jumped as much as 1.5 per cent at intraday high of Rs 6,410 in an otherwise weak market on Tuesday after company said that it plans to resume sales of Maggi noodles from November.
Nestle had to stop selling Maggi noodles after the Food Safety and Standards Authority of India (FSSAI) imposed a ban on Maggi noodles in June for high levels of lead and mono-sodium glutamate (MSG), a taste enhancer.
Nestle India had to recall the product from the market after several states banned the '2-minute' instant food as tests showed it contained MSG (monosodium glutamate) and lead in excess of permissible limits.
Nestle India had challenged the FSSAI order in the Bombay High Court and sought review of the order passed by the food regulator. Following which, the court ordered an independent lab testing of the product. Nestle later said that Maggi noodles cleared the tests mandated by the court.
Since June 2015, when the FSSAI imposed banned Maggi noodles, the shares of Nestle India have fallen 6.3 per cent. The company reported first ever loss in 15 years following the controversy surrounding Maggi noodles. Nestle India reported a loss of Rs 64.4 crore in June quarter, compared with a profit of Rs 288 crore a year earlier.
Shares of Nestle India ended 0.6 per cent higher at Rs 6,354 outperforming the Nifty which closed 0.33 per cent lower.
