Impact of Maggi Row in India

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Impact of Maggi Row in India
International Journal of Management and Social Sciences Research (IJMSSR)                              ISSN: 2319-4421             46
Volume 4, No. 7, July 2015

                                  Impact of Maggi Row in India
Neha Garg, Student of M. Com., Department of Commerce, Kurukshetra University, Kurukshetra

ABSTRACT                                                           which India won its first Cricket World Cup- they
                                                                   instantly caught everybody’s imagination. With its launch,
Maggi, a well reputed brand, is known to all. Even a small         an entirely new food category- instant noodle - was
child can easily pronounce its name at a shop to buy it. It        created in the Indian packaged food market. It was
has become the favourite snack of most of the population           primarily targeted at the working women who were having
of India. Maggi is the great contributor to the revenue of         little time to prepare meals. But after a survey, it was
Nestle India Ltd., a subsidiary of a Swiss company. Maggi          found that much of the consumers were children as
generally has remained in publicity for its taste. Now also        compared to women. So later on, Maggi was targeted at
it is in publicity but there is a difference now, it is negative   children and their mothers. Within its first 25 years, Maggi
publicity due to the presence of monosodium glutamate              was having 90% of the instant noodles market. Today,
and dangerous excessive level of lead in its products as           Maggi is particularly well known in India, Malaysia,
tested by FSSAI. This has shaken the trust of the                  Pakistan, Nigeria, the Philippine and Singapore for its
consumers fully. This Maggi row has become so much                 instant Maggi noodles. It has become the favourite snack
critical due to the involvement of health aspect and               of most of the population of India. Maggi is the great
children in this case. As a result of this row, various            contributor to the revenue of Nestle India Ltd. India is the
sections of the society have been impacted like workers,           largest market for Maggi noodles. Maggi generally has
suppliers, share market, Government, Company itself, etc.          remained in publicity for its taste. Now also it is in
in India. Nestle India Ltd. has done a lot to control the          publicity but there is a difference now, it is negative
situation but it was half heartened in the beginning which         publicity due to all the wrong reasons- presence of
has worsened the issue. Since the Maggi row has impacted           monosodium glutamate and dangerous excessive level of
the whole India severely and owing to the importance of            lead in its products. This has shaken the trust of the
assessing the damage done, in taking remedial measures,            consumers fully.
it is vital to conduct research regarding the whole impact
of Maggi row. So, considering this hot issue, I have               HOW THE ROW BEGAN?
conducted this research to assess the impact of Maggi row
in India. For this, I have approached secondary source of          The Nestle Maggi-2 minute noodles row has puffed up as
data collection and collected information from various             the India’s worst food scare in a decade after that of
websites like website of DNA, Nestle India ltd., FDA, etc.         presence of pesticides in soft drinks. The scare over Maggi
along with various newspapers like The Hindu, Business             instant noodles, India’s one of the most popular snacks,
Standard, Economic Times, Financial Express, The                   has gripped increasingly the health conscious consumers.
Tribune, etc. With the help of this information I have             Nestle’s woes began last year on the eve of Holi- India’s
assessed the impact of Maggi row in India. The                     festival of colours, when the inspectors were on lookout
assessment shows that it has done a lot of damage within           for adulterated foods at the retailers in Barabanki, a town
just a month.                                                      of approximately 1,50,000 population in Uttar Pradesh.
                                                                   That was the time of aggressive checking of adulterated
Keywords                                                           food products. Inspectors picked up the samples of Maggi
Monosodium glutamate, Maggi, Nestle India Ltd., FSSAI,             noodles from a local supermarket. The samples were sent
brand value, BSE Sensex.                                           to a state laboratory in Gorakhpur, which on April 24,
                                                                   2014 reported that, the labelling- ‘No added MSG’ had
INTRODUCTION                                                       violated Indian regulations as MSG was found in test. But
                                                                   Nestle appealed against the report stating that the noodles
                                                                   contained MSG, i.e. Monosodium Glutamate, as a result of
Maggi, a well reputed brand, is known to all. Even a small         a natural process and thus, the sample were sent for testing
child can easily pronounce its name at a shop to buy it. It        at the Central Food Laboratory in Kolkata, a Government
is an international brand of instant noodles, seasonings and       referral lab. After more than a year, Kolkata lab presented
soups owned by Nestle since 1947. The original company             its results in a report dated April 27, 2015, confirming the
was set up by Julius Maggi in Switzerland in 1872 and              violation of labelling rules. Along with it, the samples also
merged with Nestle family in 1947. Maggi was first to              tested positive for excessive level of lead content to 17.2
bring protein rich legume meal followed by readymade               parts per million (ppm), compared with a legal limit of 2.5
soups to the market. When Maggi instant noodles arrived            parts per million (ppm), a copy of the lab report seen by
in India in 1983- a memorable year for Indian history in           Reuters showed.

    i-Explore International Research Journal Consortium                                               www.irjcjournals.org
Impact of Maggi Row in India
International Journal of Management and Social Sciences Research (IJMSSR)                          ISSN: 2319-4421            47
Volume 4, No. 7, July 2015

After a meeting with Nestle bosses, FSSAI (Food Safety          approval. It has led to the imposition of ban on 9 variants
and Standards Authority of India) on June 5, 2015 ordered       of Maggi product and shuffle in the whole food industry
the withdrawal of Maggi Noodles by a notice that stated         and Indian economy. It has impacted various parts of
that the Nestle bosses argued that the tests at the Kolkata     Indian economy. This study helps us to know the impact
Lab had showed a very high level of lead because the            of Maggi row in India.
samples remained open for a long time period before being
tested, but they were unable to elaborate on how that could     RESEARCH OBJECTIVE
have resulted in excessive lead and MSG, so the argument
was rejected by FSSAI.                                          The paper aims to:
                                                                  • To examine the root cause of the Maggi row.
From there, what began as a minor labelling issue that
                                                                  • To assess the impact of Maggi row in India.
according to a local Magistrate could have been settled
with a fine of INR 25000, mushroomed into Nestlé’s worst
public relations crisis to date in India since its presence.    RESEARCH METHODOLOGY

NEED OF THE STUDY                                               In order to achieve the research objectives, the study is
                                                                based on secondary data. The data has been collected from
                                                                various websites like Wikipedia, nestle.org, reuters.com,
Nestle India Ltd.’s Maggi-2 minute noodles row has led to
                                                                www.dnaindia.com, etc. and newspapers like Business
a sort of chaos in the whole country. Parents, children,
                                                                Standard, Economic Times, The Tribune, etc. With the
workers, investors, suppliers, etc. just do not know how to
                                                                help of this data, the impact of Maggi row has been
deal with the situation. This is the India’s worst food scare
                                                                assessed.
in a decade after that of presence of pesticides in soft
drinks. The scare over Maggi instant noodles, India’s one
of the most popular snacks, has gripped increasingly            DISCUSSION AND ANALYSIS
various sections of the society. So, the research is
imperative to assess that upto what extent this Maggi row       WHAT IS THE ROOT CAUSE OF THE MAGGI ROW
has impacted India so that future plans for remedy can be       The whole issue is all about health and safety. MSG and
prepared accordingly.                                           lead are the main culprit here. The presence of these two
                                                                contents in Maggi products have brought them under the
                                                                scanner of FSSAI. So, basically what are they and what is
STATEMENT OF PROBLEM
                                                                the problem due to their presence?
The well renowned Swiss based Nestle company’s Maggi-           MSG i.e. Monosodium Glutamate is a flavour enhancer
2 minute noodles has defaulted on FSSA (Food Safety and         that occurs naturally in many foods, such as tomatoes and
Standards Act)regulations owing to the presence of lead         cheeses. People have been eating glutamate rich foods
detected in product in excess of the maximum permissible        throughout the world. USA FDA (Food & Drug
levels of 2.50 parts per million (ppm), misleading labelling    Administration) considers the addition of MSG to food to
information on the package reading ‘No added MSG’, and          be generally recognized as safe (GRAS). So, what is the
thirdly, the release of a non standardized food product         problem here? The problem is the labeling on Maggi
‘Maggi Oats Masala Noodles with Taste maker’ in the             products of ‘No added MSG’. It was misleading and in
market, without risk assessment and grant of product            violation of the FSS (Packaging & Labeling) Regulation,

    i-Explore International Research Journal Consortium                                           www.irjcjournals.org
Impact of Maggi Row in India
International Journal of Management and Social Sciences Research (IJMSSR)                             ISSN: 2319-4421             48
Volume 4, No. 7, July 2015

2011.Another problem is the presence of lead content to           the employees and their families have been told to act as
17.2 ppm in the noodles that is beyond the maximum                Company ambassadors in these hard times. Nestle had also
permissible limit of 2.50 ppm. This is a matter of serious        moved to Bombay High Court for relief and to some
concern given the fact that most of the consumers of              extent has got some relief with the court allowing the
Maggi are children and the children are more vulnerable to        export of Maggi outside India. A visit organized for the
the adverse effects of lead than adults. Lead accumulates         media to the Company’s production facility at Moga in
in the body and also gets absorbed quickly when taken on          Punjab and Hassangarh plant in Haryana and opening the
empty stomach. It can cause mental injury, learning               doors of its production facilities to scrutiny is a sure sign
difficulties, low IQ, growth delays, etc. Under FSS (Food         that Nestle is trying to bounce back at the earliest.
Safety & Standards) Act, every manufacturer has the               According to media reports, in an attempt to do some
responsibility to ensure that the food that he sells is safe in   damage control, Nestle India is looking to tie up with US
all respects and confirm to the standards prescribed under        based public relations firm APCO Worldwide. Nestle has
the law. So due to these violations of major food                 also conducted tests of the samples at their accredited labs
regulations, various states have banned the sale of nine          and are also cooperating with the regulators in the enquiry.
variants of Maggi- Uttar Pradesh, Delhi, Gujarat, Tamil           They are also answering the questions of the public
Nadu, Maharashtra, Kerala,, Madhya Pradesh, Jammu &               regarding Maggi on their website- www.nestle.com, for
Kashmir, Telangana, Bihar and several other states.               more information enquirer can contact the consumer
                                                                  services     at    consumerservices@in.nestle.com          or
WHETHER NESTLE COULD HAVE AVERTED THE                             18002661188. Company has also provided the facility of
CRISIS                                                            returning the bought but unused packets of Maggi so to
 Yes, the senior officials also admit that Nestle could have      maintain better customer relationship.
averted this crisis, and the impact would not have been so
much had Nestle been proactive. Also according to a local
Magistrate, the same could have been settled by paying a          IMPACT OF MAGGI ROW IN INDIA
fine of INR 25000. If Nestle would have paid INR 25000
fine in this case and not gone for appeal against the report,     Maggi noodles, which at estimated INR 2500crore
the situation could have been different now. It could also        revenue that makes up over 30% of the Nestle’s revenue
have changed the labelling to comply with the FSS                 and commands 80% of the market, has severely affected
regulations. Later on also, as the matter intensified with        India. Maggi noodles sales have been hit hard ever since it
more states claiming Maggi as unsafe, the Company did             was revealed that the samples tested by Government lab
not do so much apart from issuing statements invalidating         contained MSG and lead beyond permissible limits. The
these findings. By the time, the FSSAI issued ban and             brand Maggi which has become the generic name of
recall order on June 5, 2015, the matter had gone out of          noodles in India, has therefore also witnessed a severe
hand. Even the presence of Paul Bulcke, Nestlé’s Global           dent in its popularity and image. Following are the few
CEO, in India could not help rescue.                              glimpses of the impact of Maggi row in India:
WHAT NESTLE INDIA LTD. HAS DONE TO
                                                                    •    Around 1500 workers and other employees
HANDLE THE SITUATION                                                     impacted: Around 1500 workers involved in
Nestle India Ltd. has been on firefighting mode ever since
                                                                         manufacturing of Maggi in India have been
the Maggi row became the news headlines. No doubt, the
                                                                         impacted by the stoppage of production after ban on
brand’s reputation has taken a serious hit and it takes some
                                                                         Maggi. According to senior company official, these
time for the brand to regain the trust of customers. The
                                                                         workers have been redeployed, engaged in other
Indian subsidiary of the $100 billion Swiss based major,
                                                                         units and in a way impacted. Company has not fired
after a slow response to the crisis initially is now moving
                                                                         any of its permanent workers but has engaged them
quickly to contain the damage and of course, to hasten its
                                                                         in other activities like training, team building
comeback in the Indian market. Its crisis management
                                                                         exercise, etc. but their future is uncertain. Hundreds
began on June 5, 2015, with the company releasing a press
                                                                         of contractual workers have lost their jobs due to
statement to announce a voluntary recall of Maggi noodle
                                                                         Maggi production stop. Nestle India is not granting
but maintained the product was actually safe as the
                                                                         leaves to the employees unless there is emergency
company’s own analysis had shown. At press conference
                                                                         and the employees who were on leave have been
in New Delhi, understanding the delicacy of the matter,
                                                                         called back.
the senior management was there to answer the questions
                                                                    •    Suppliers impacted: Owing to the Maggi ban, the
and to maintain the trust of its customers. Global CEO
                                                                         production of Maggi has stopped and thus, the
Paul Bulcke and Company Sri Lanka head Shivani Hegde,
                                                                         suppliers have also been hit. Suppliers have to look
who is believed to be the key person behind Maggi’s
                                                                         for new customers after the ban on Maggi. Nestle
success in early 1980s, were in the conference to control
                                                                         India’s largest supplier of spices, Moga based Paras
the damage to the brand. Reports have also suggested that
                                                                         Spices Ltd., has already ended the services of some

    i-Explore International Research Journal Consortium                                              www.irjcjournals.org
International Journal of Management and Social Sciences Research (IJMSSR)                         ISSN: 2319-4421            49
Volume 4, No. 7, July 2015

        of the workers out of 200 temporary employees.              economy’s position and also the benchmark index
        Due to Maggi ban, Paras Spices Ltd. has received a          of Indian equities market. So, taking BSE Sensex as
        serious jolt as Nestle’s Maggi used to be its only          the base, position of Nestle India Ltd. has been
        major client consuming about 45% of its production          shown. Earlier during the year, the Nestle India Ltd.
        i.e. around 200 tonnes of spices per month.                 had performed better than the BSE Sensex on
  •     Impact on share market: The Maggi row has not               bourses. Its growth rate was better before the ban
        even spared the share market from its impact. This          on Maggi was imposed on June 5 as can be seen
        crisis has made the investors bearish. Since BSE            from the graph.
        Sensex is considered as the best indicator of the

FIGURE 1: Graph showing growth rate of Nestle India Ltd. share prices and BSE Sensex from January 1, 2015 to
                                              June 30, 2015

 Source: Business Standard (Nestle India Ltd. share prices live)

Three months before the ban on Maggi i.e. on March 5,         had performed better as compared to Nestle India Ltd. in
the picture was totally different as compared to now.         the share market. The situation worsened on June 8 as the
Growth rate of Nestle India Ltd. shares was 18.71% as         growth rate of Nestle India Ltd. went down to -9.61% as
compared to 8.1% of BSE Sensex that means Nestle had          compared to -2.64% of BSE Sensex. On June 29, the
performed brilliantly well on bourses. On April 6, Nestle     situation was recovering in the hope of getting some relief
India’s growth rate was 15.91% as compared to BSE             as Nestle India Ltd. showed the growth rate of -1.05 % as
Sensex growth rate of 4.64%, also better progress than        compared to 1.48% of BSE Sensex. On June 30, as a result
BSE Sensex. On May 5, i.e. one month back from the            of Bombay High Court relief of permission to export
imposition of Maggi ban, the growth rate of Nestle India      Maggi, Nestle India Ltd. showed the growth rate of 3.51%
Ltd. on bourses was 11.08% as compared to 0.73% of BSE        as compared to 1.98% of BSE Sensex. It showed
Sensex; it was extremely well i.e. gap of 10.35%. On May      improvement. Owing to Nestle India Ltd.’s nearly three
27, growth rate of Nestle India Ltd. was 15.21% as            decade old presence and considerable size, stock analysts
compared to 1.91% of BSE Sensex i.e. gap of 14.02%.           are even now somewhat patient and adopting BUY,
This all shows that Nestle India has performed well,          HOLD strategies till the final results are out i.e. analysts
earlier than the Maggi ban. But as the Maggi row began to     are not in favour of selling Nestle India Ltd. shares.
emerge in media, share market suddenly collapsed for             • Other noodle making companies affected: Maggi
Nestle India Ltd. On June 5, day on which Maggi ban was               row has also affected other noodle making
imposed, the growth rate of Nestle India Ltd. was -2.81%              companies. It has provided an opportunity for its
as compared to -1.74% of BSE Sensex i.e. BSE Sensex                   competitors to take advantage of the situation and

      i-Explore International Research Journal Consortium                                        www.irjcjournals.org
International Journal of Management and Social Sciences Research (IJMSSR)                        ISSN: 2319-4421             50
Volume 4, No. 7, July 2015

        grab Nestlé’s customers especially to the key               that it is hazardous for consuming so where were
        competitor ITC (Yippee noodles). But upto some              they since long? After Uttar Pradesh’s lab test,
        extent it has also affected them negatively also. As        other states have started testing of Maggi samples
        Maggi has become the generic name for noodles, so           and then are declaring it hazardous to consume. So,
        hearing anything wrong about Maggi make the                 why were they sleeping till now? Also after the first
        consumers conscious of all the noodles as they              test report, when Nestle appealed against it, then it
        associate other noodles with Maggi. Increased               took more than one year for the report to come
        frequency of advertisement by these competitor              (such a long time for a report to come). Even a case
        companies during June and also more focus on                of Maggi testing positive for MSG had come earlier
        quality as compared to earlier in these                     also in 2013 where only penalty of INR 25000 was
        advertisements are the evidence that these                  imposed and that was the end of the matter
        companies have also been impacted in some way or            according to a local Magistrate in Barabanki. So,
        other. After this Maggi row, various companies are          what about the food safety, what about consumers
        under the FSSAI’s lens of suspicion which can be            who consumed that Maggi? Whether the duty for
        seen as under in figure 2.                                  food safety is only upto imposing penalty. Again
                                                                    the same issue has heated up but now also, it is not
  FIGURE 2: Showing various companies under the                     the food safety network that have worked totally on
            FSSAI’s lens of suspicion                               its will but it is the media that is raising the issue
                                                                    thereby compelling the authorities to investigate the
                                                                    issue.
                                                                •   Hit Nestle revenue badly: The instant noodles
                                                                    market is estimated at about INR 2500crore. Maggi
                                                                    noodles contribute over 30% of the company’s total
                                                                    revenue (as can be seen under in figure 3) and have
                                                                    80% of the market share. According to analysts, the
                                                                    Maggi noodles controversy is eating into the Nestle
                                                                    India’s maket size and could take away a big chunk
                                                                    of its revenue for a few quarters. As a result of
                                                                    countrywide ban on Maggi, large retailers like
                                                                    Reliance, Big Bazar, Nilgiris, etc. took the Maggi
                                                                    products off shelf. Some retailers said Maggi sales
                                                                    fell down by 30% after the issue came up.
                                                                    According to an analyst at a domestic brokerage,
                                                                    Maggi was perhaps the only growing brand (in
Source: Business Standard                                           volume) for Nestle India last quarter. Following this
                                                                    controversy, company’s volume growth in second
                                                                    quarter (April-June) could even be negative. Losses
  •     Consumers have become more conscious of their               due to safety concerns are INR 320crore as a result
        food eating habits: Earlier, the most of the                of recalling and destroying Maggi. Maggi issue has
        consumers were ignorant about the ingredients of            also affected the sale of other Nestle products like
        the packaged food. What tasted better, was                  Tomato Ketchup and soups. Maggi was the
        preferred by them. If in some cases, they would             favourite snack for children, tourists, youngsters,
        bother, then it would be for MRP (Maximum Retail            etc., but now, according to dhaba owners, many
        Price) and for manufacturing and expiry date and            tourists now prefer paranthas and other alternatives
        not more than that. But after the Maggi row, the            instead of Maggi. So, on an all, in every state of the
        eyes of consumers have opened up and they have              country, Maggi row has affected Nestle’s revenue
        understood the importance of checking the                   adversely.
        ingredients of the products also and see what
                                                                •   Loss of $200 million in brand value: According to
        quality of food they are eating. Evidence can be
                                                                    brand Finance, an independent asset valuation
        seen as most of the people are discarding the
                                                                    consultancy, Maggi is going to lose $200 million in
        consumption of Maggi noodles all over the country
                                                                    brand value after imposition of ban on Maggi’s nine
        leading to decline in sale of Maggi. As said by
                                                                    variants (as can be seen from figure 3). Maggi is
        some retailers, Maggi sales fell nearly 30% after the
                                                                    going to destroy $50 million worth of noodles
        issue came up.
                                                                    labelled as ‘unsafe and hazardous’ after imposition
  •     Highlighted the shortcomings in the country’s               of ban by FSSAI. $50 million loss of goods include
        food safety network: Maggi has been in India                the estimated sales value of the stock in the market
        since one decade. If the FSSAI has reported now             including those with trading partners as

      i-Explore International Research Journal Consortium                                       www.irjcjournals.org
International Journal of Management and Social Sciences Research (IJMSSR)                                          ISSN: 2319-4421             51
Volume 4, No. 7, July 2015

        INR210crore and estimated stock at its factories                              drug as a different drug or preparation) and 420
        and distribution centers of INR 110crore.                                     (cheating and dishonesty).
        According to Brand Finance, the Maggi brand was                          • Central Government has used the provision of
        worth $2.4billion before the recall of Maggi                                  complaining on its own to NCDRC for the first
        products. The brand was ranked as 23rd most                                   time: In further troubles for Nestle over Maggi row,
        valuable food brand in the world as ranked by                                 the Central Government has filed a complaint with
        Brand Finance. The consultancy calculated $50                                 the National Consumer Disputes Redressal
        million loss of goods along with a damage to brand                            Commission (NCDRC) on its own in the interest of
        that resulted in a reduced Maggi brand value of                               consumers. Usually, NCDRC acts on the
        $2.2billion. Any health concern raised by any                                 complaints filed by a consumer but section 12-1-D
        reputed organization, such as FSSAI, most                                     of the Consumer Protection Act, 1986 also provides
        negatively affects a food brand. Now, Nestle will                             for Government to register a complaint on its own
        have to ensure its dominance in the Indian market.                            if it deems fit. For the first time in three decades,
                                                                                      the Central Government has used this provision.
FIGURE 3: Showing industry estimates of Nestle India                                  The raising of issue by the Central Government has
  analysts regarding various effects of Noodles crisis                                shown the seriousness of the issue.
                                                                              So, the Maggi row has impacted the workers, suppliers,
NOODLES CRISIS                                                                share market, Nestle’s revenue, brand ambassadors,
                                                                              Central Government, etc. The final verdict has not come
• Market size: Around Rs 2,500 crore
                                                                              till now, so the issue has yet to impact a lot.
• Sales: Makes up over 30 per cent of Nestle India’s
  revenue
                                                                              DILEMMA! A SORT OF DOUBT
• Losses due to safety concerns: Rs 320 crore
• Brand value hit: $200 million (Rs 1,200 crore)
                                                                              The industry is unclear about testing mechanisms and
                         Source: Nestle India, analysts, industry estimates
                                                                              standards in India. FSSAI, a young organization with
Source: Business Standard                                                     limited resources and infrastructure, may not be final
                                                                              organization on food standards, argue the company
  •     Brand ambassadors in trouble: Since an                                executives. With Singapore, Australia, Newzealand, UK,
        ambassador plays a vital role in endorsing a product                  Canada and other countries giving a clean chit to India
        to the consumers and the consumers are affected by,                   made Maggi noodles, it has added to the doubt of whether
        who is endorsing the product, a lot. So, nowadays,                    FSSAI is justified in its clamp down on Nestle on the basis
        companies are contacting and making the filmstars,                    of test samples from a few states. Even the test of some of
        famous sportspersons, etc. as their ambassadors.                      the samples in several states have tested lower level of
        This shot up the sale to large extent. In case of                     lead and no MSG. according to Anupam Gogoi, food
        Maggi also, Amitabh Bachchan, Preity Zinta and                        analyst at the laboratory in Guwahati, presence of MSG is
        Madhuri Dixit are the brand ambassadors whose                         not an offence in India since there is no prescribed limit
        fan following has resulted in more favourable                         for it. But misleading labeling of ‘no added MSG’ is the
        response of consumers towards Maggi. Now as the                       issue. The company is saying that the product is safe for
        Maggi row has blared up, it has also put its brand                    consumption and FSSAI is saying the product is
        ambassadors, along with the company officials, in                     dangerous for consumption. Both have been defending
        trouble as a brand ambassador endorsing the                           one’s own side. These have created a dilemma among the
        product in the advertisement is also equally                          consumers whether Maggi should be consumed or not but,
        responsible for making the consumers fool. A                          this row has impacted a lot in India and also will impact in
        district court in Muzaffarpur had directed police to                  future also, till the final outcome will come. This is all
        register an FIR against two Nestle officials and                      about what began as a minor labelling dispute that
        filmstars- Amitabh Bachchan, Preity Zinta, and                        according to a local magistrate could have been settled
        Madhuri Dixit, who have endorsed Maggi in                             with an INR 25000 fine, spiraled into Nestle’s worst
        advertisements, and to arrest them if required in the                 public relations crisis to date in India. This study will help
        course of investigation. The FIR was made by a                        a lot to understand the real impact of Maggi row in
        complainant claiming that he fell sick after eating                   simplified and clear way.
        Maggi purchased from a shop at Lenin Chowk of
        Muzaffarpur on May 30, 2015. The case has been                        SCOPE FOR FURTHER RESEARCH
        filed under IPC section 270 (malignant act likely to
        spread infection of disease dangerous to health),                     I have conducted research only for a limited time period
        273 (sale of noxious food or drink), 276 (sale of                     i.e. upto June 30. Till June 30, the final outcome has not
                                                                              come. Court hearings are pending and there is a lot to be

      i-Explore International Research Journal Consortium                                                         www.irjcjournals.org
International Journal of Management and Social Sciences Research (IJMSSR)                      ISSN: 2319-4421            52
Volume 4, No. 7, July 2015

happened in this Maggi row which will impact various          [12] www.nestle.com
parts of the economy and it may be totally different from     [13] www.bbc.com/news/world-asia-india33002261
now as the long term impact is usually different from short   [14] www.newindianexpess.com/nation/Maggi-Row-
term impact of any event. This is only a part. Further             Court-Orders-FIR-Against-Amitabh-Madhuri-
extensive research can be done only after the final                Preity/20115/06/02/article2845494.ece
outcome.                                                      [15] timesofindia.indiatimes.com/city/mumbai/Maggi-
                                                                   sales-plummet-acrossIndia/articleshow/47507
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