<img class="gwt-Image" src="/photo/47654527.cms" /> After the Maggie row, the food safety debate has become intense both in India and abroad. More than 2,100 import batches of ‘made in India’ products across food, personal care and health supplement categories were rejected by the US food and drug regulator in the past one year. Most of the products were by leading companies such as <keyword id="6365619" type="CITY" weightage="100" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword>, Britannia, <keyword id="6356830" type="CITY" weightage="100" keywordseo="Nestle-India">Nestle India</keyword>, Haldiram, Heinz India and MTR Foods. 
 
 The reasons for rejection vary from minor labelling issues to products manufactured in unhygienic conditions to pesticides being above permissible limits, according to data put out by the <keyword id="6356255" type="ORGANIZATION" weightage="80" keywordseo="US-Food-and-Drug-Administration">US Food and Drug Administration</keyword> (USFDA) on its website. 
 
Several companies argued that the bulk of products were shipped without their knowledge by unauthorised third-party traders. 
 
 "Instances of product rejections could be either due to improper storage and distribution done by unauthorised exporters. In case our official export products are rejected, we always re-test them at FDA-approved labs," said AK Tyagi, director at <keyword id="2897684" type="UNKNOWN" weightage="80" keywordseo="Haldiram-Manufacturing-Ltd-">Haldiram Manufacturing Ltd.</keyword> Tyagi added that the US FDA regularly inspected its facilities in India and its products conform to global safety norms. 
 
RS Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation, the maker of Amul dairy products, said while quality standards of Indian packaged food products were based on global norms, rejection of batches was an important issue which needed to be addressed. 
 
Britannia said it exports to the US only out of USFDA-registered factories in India and meets all product and labelling standards. The products that were rejected by the USFDA were not shipped directly by the company. 
 
Similarly, both Hindustan Unilever and Nestle India said the products that were banned were not exported by them. 
 "We wish to clarify that in 2015, HUL has not received any refusal from USFDA for any of the products that it exports to the US market through its authorised distributor which is registered with the USFDA. We wish to further clarify that the <keyword id="6354298" type="ORGANIZATION" weightage="40" keywordseo="stocks">stocks</keyword> refused import into the US by USFDA in 2015 have not been exported by HUL,” said a company spokesman. 
 
A Nestle spokesman said the company had checked the FDA site and some of the batches are described as coming from factories that do not produce products for export to the US. 
 
 "This means that the batches were so called 'grey market' exports - exports which were not organised or controlled by the company but by other individuals or entities. This explains why the batches were rejected," he said At times, companies are not even aware that their products have been rejected. "As a responsible company, we will always cooperate with any query should it come in," said a <keyword id="2200852" type="COMPANY" weightage="100" keywordseo="Mondelez-India">Mondelez India</keyword> spokesperson. 
 
 
After the Maggie row, The USFDA, too, has begun testing of samples of Maggi noodles manufactured in India and sourced by retailers in America from third-party importers 
 
Instances of rejection have marred India’s food industry’s image previously too. Just last month, the USFDA rejected 53 Haldiram-made consignments due to presence of pesticide in fried snacks, potato snacks and sweets, claiming they were either not adequately processed or manufactured, or packaged in insanitary conditions. 
 
 
In April this year, Mondelez India's batch containing chocolate candy bar with nuts and fruits was rejected since "the article appears to have been manufactured, processed, or packed under insanitary conditions", said a statement on the FDA website. 
 
Also, one might remember that in January, it had rejected instant noodles manufactured in Nestle's Moga factory since the packaging label didn't outline all ingredients. 
 
(image credits: demanjo.com)

Haldirams, Britannia and HUL cannot sell its food
products in the US. Know why

New Delhi, Nov 15 () The National Company Law Tribunal (NCLT) has directed the lenders of Kwality Ltd to reconsider the revised Rs 145-crore offer by Haldiram Snacks to acquire the debt-ridden dairy firm.
The Delhi-based bench of the tribunal has also extended the Corporate Insolvency Resolution period by another three weeks and directed the Committee of Creditor (CoC) to reconsider the enhanced offer. 
Earlier, the lenders of Kwality Ltd had rejected the Rs 142 crore bid of Delhi-based Haldiram Snacks, which emerged as the sole bidder to acquire the debt-ridden dairy firm.
Following which, Haldiram Snacks had revised its offer marginally and approached the NCLT with a plea that its latest resolution plan should be considered by the lenders as the offer is higher than the liquidation value.
In 2018, the NCLT ordered insolvency proceedings in Kwality on a petition filed by global private equity firm KKR. Shailendra Ajmera, who is part of multinational consultancy firm EY, has been appointed as the resolution professional to conduct the insolvency proceedings.
On November 2, the CoC had rejected Haldiram Snacks' Rs 142 crore resolution plan, as only about 40 per cent of the lenders voted in favour of the resolution plan as against the requirement of 66 per cent.
Kwality has a total debt of around Rs 1,900 crore.
Haldiram Snacks had earmarked Rs 135.64 crore for the financial creditors out of its total offer of Rs 141.59 crore to acquire Kwality Ltd.
Post rejection of its offer, Haldiram had written a letter on November 4 to IRP, revising its offer to Rs 139 crore for financial creditors, taking the total value of the bid to Rs 144.95 crore.
Haldiram has filed a petition before the NCLT, requesting that RP should be directed to place the revised bid before the COC for consideration.
It had requested the NCLT to direct the resolution professional to place the latest offer before the CoC for consideration.
"The said letter (November 4, 2019) offers an increase in the offer value to financial creditors by Rs 3.3 crore to Rs 139 crore from Rs 135.64 crore and consequently, the total offer value to Rs 144.95 crore," it had said.
Haldiram also added that its improved offer "will help financial creditors derive a much better value they can hope to realise in the event corporat debtor (Kwality) is put into liquidation".
In 2016, Kwality had raised Rs 300 crore from KKR India Financial Services and got additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.
The company is engaged in the business of milk processing and manufacturing of dairy products, including ghee, milk powders, lassi, chaach and flavoured milk. It owns two milk processing units, one in Softa, Haryana, and another in Dibai, Uttar Pradesh.
Haldiram sells sweets and other snacks through its own outlets as well as retail chain. MJH KRH MKJ

Kwality insolvency: NCLT directs lenders to consider Haldiram Snacks' revised offer of Rs 145 cr

New Delhi, Nov 15 () Following are the top business stories at 1830 hours:
 
DEL37 BIZ-LD INSOLVENCY
Govt notifies rules under insolvency law for resolution of fin service providers
New Delhi: The government on Friday notified rules under the insolvency law to deal with resolution of systemically important financial service providers, excluding banks. 
DCM18 BIZ-LABOUR-GANGWAR-PAYDAY
India mulls 'One Nation, One Pay Day: Gangwar
New Delhi: To safeguard the interest of workers in formal sector, particularly working class, the Centre is planning to introduce 'One Nation, One Pay Day' system, Labour Minister Santosh Gangwar said on Friday.
 
DCM17 BIZ-NCLT-HALDIRAM-KWALITY
Kwality insolvency: NCLT directs lenders to consider Haldiram Snacks' revised offer of Rs 145 cr
New Delhi: The National Company Law Tribunal (NCLT) has directed the lenders of Kwality Ltd to reconsider the revised Rs 145-crore offer by Haldiram Snacks to acquire the debt-ridden dairy firm. 
 
DEL43 BIZ-RUPEE-CLOSE
Rupee extends gains for 2nd day, rises 18 paise to 71.78 vs USD
Mumbai: The rupee appreciated by 18 paise to close at 71.78 against the American currency on Friday, extending gains for a second day on the back of easing crude oil prices and positive trends in equity markets.
 
DEL40 BIZ-LD STOCKS
Markets eke out gains in range-bound trade; Bharti Airtel rallies 8 pc
Mumbai: Market benchmark BSE Sensex closed with modest gains on Friday, led by a spurt in Bharti Airtel and SBI, amid encouraging global cues.
 
DCM27 BIZ-STOCKS-LD-TELECOM
Loss-hit Voda-Idea, Airtel surge up to 27pc on floor price buzz
New Delhi: Telecom stocks on Friday surged up to 27 per cent after reports suggested that the telecom department may fix a floor price for data and voice tariffs, notwithstanding huge losses reported by two leading players for the July-September quarter.
 
DCM23 BIZ-LD TRAI-FLOOR PRICE
No reference from DoT on floor price issue yet: Trai chief
New Delhi: The telecom department has not yet approached the regulator for its views on floor price for tariffs, Trai Chairman RS Sharma said on Friday.
 
DCM14 BIZ-CADILA-USFDA-WARNING
USFDA finds significant violations of CGMP at Cadila's Moraiya plant
New Delhi: The US health regulator has found significant violation of current good manufacturing practice (CGMP) regulations for finished pharmaceuticals at Cadila Healthcare's Moraiya (Ahmedabad) based manufacturing facility. 
 
 
 
 
 
 
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Haldirams, Britannia and HUL cannot sell its food products in the US. Know why

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