Shares of Nestle plunges as Maggi row escalates

Wednesday, Jun 3, 2015,20:26 IST By metrovaartha A A A

New Delhi | Amidst reports that India’s biggest retailer Future group stopped stocking Nestle’s noodle brand ‘Maggi’, the shares of the company plunged over 10 per cent today in the stock market.
Future group that runs more than 500 supermarkets, is Nestle’s largest client for Maggi noodle retailing. Samples of Maggi noodles taken in the national capital were found unsafe for consumption during tests by the Delhi government, which decided to initiate a case against Nestle India.
The stock crashed 10.10 per cent to Rs 6,119.40 on BSE. On NSE, it fell sharply by 10.2 per cent to Rs 6,109. A Bihar court yesterday ordered an FIR against Maggi brand ambassadors Amitabh Bachchan, Madhuri Dixit and Preity Zinta even as Nestle India faced trouble in more states.
State-owned retail outlets in Kerala were asked to withdraw these products, and Karnataka and Haryana ordered random lifting of samples for scrutiny.
Meanwhile, BSE has sought clarification from Nestle India with reference to reports that the Maggi samples failed safety test in Delhi. An e-mailed query to Future group on the issue remained unanswered till filing of this report.