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Impact of Maggi Row in India
Impact of Maggi Row in India
ISSN: 2319-4421
ABSTRACT
Maggi, a well reputed brand, is known to all. Even a small
child can easily pronounce its name at a shop to buy it. It
has become the favourite snack of most of the population
of India. Maggi is the great contributor to the revenue of
Nestle India Ltd., a subsidiary of a Swiss company. Maggi
generally has remained in publicity for its taste. Now also
it is in publicity but there is a difference now, it is negative
publicity due to the presence of monosodium glutamate
and dangerous excessive level of lead in its products as
tested by FSSAI. This has shaken the trust of the
consumers fully. This Maggi row has become so much
critical due to the involvement of health aspect and
children in this case. As a result of this row, various
sections of the society have been impacted like workers,
suppliers, share market, Government, Company itself, etc.
in India. Nestle India Ltd. has done a lot to control the
situation but it was half heartened in the beginning which
has worsened the issue. Since the Maggi row has impacted
the whole India severely and owing to the importance of
assessing the damage done, in taking remedial measures,
it is vital to conduct research regarding the whole impact
of Maggi row. So, considering this hot issue, I have
conducted this research to assess the impact of Maggi row
in India. For this, I have approached secondary source of
data collection and collected information from various
websites like website of DNA, Nestle India ltd., FDA, etc.
along with various newspapers like The Hindu, Business
Standard, Economic Times, Financial Express, The
Tribune, etc. With the help of this information I have
assessed the impact of Maggi row in India. The
assessment shows that it has done a lot of damage within
just a month.
Keywords
Monosodium glutamate, Maggi, Nestle India Ltd., FSSAI,
brand value, BSE Sensex.
INTRODUCTION
Maggi, a well reputed brand, is known to all. Even a small
child can easily pronounce its name at a shop to buy it. It
is an international brand of instant noodles, seasonings and
soups owned by Nestle since 1947. The original company
was set up by Julius Maggi in Switzerland in 1872 and
merged with Nestle family in 1947. Maggi was first to
bring protein rich legume meal followed by readymade
soups to the market. When Maggi instant noodles arrived
in India in 1983- a memorable year for Indian history in
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STATEMENT OF PROBLEM
The well renowned Swiss based Nestle companys Maggi2 minute noodles has defaulted on FSSA (Food Safety and
Standards Act)regulations owing to the presence of lead
detected in product in excess of the maximum permissible
levels of 2.50 parts per million (ppm), misleading labelling
information on the package reading No added MSG, and
thirdly, the release of a non standardized food product
Maggi Oats Masala Noodles with Taste maker in the
market, without risk assessment and grant of product
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RESEARCH OBJECTIVE
The paper aims to:
To examine the root cause of the Maggi row.
To assess the impact of Maggi row in India.
RESEARCH METHODOLOGY
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,
www.dnaindia.com, etc. and newspapers like Business
Standard, Economic Times, The Tribune, etc. With the
help of this data, the impact of Maggi row has been
assessed.
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FIGURE 1: Graph showing growth rate of Nestle India Ltd. share prices and BSE Sensex from January 1, 2015 to
June 30, 2015
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REFERENCES
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-a-batch-of-maggi-noodles/
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