<img class="gwt-Image" src="/photo/53941013.cms" /> 
Celebrities who appear in misleading advertisements might escape jail sentence, but end up paying hefty monetary fines in case the products endorsed by them fail to live up to the claims. 
 
The decision will most likely be taken in a meeting of ministers led by Finance Minister Arun Jaitley. 
 
Even though the consumer affairs ministry asked for jail time as recommended by a parliamentary committee, some senior ministers were of the view that this would be too harsh a punishment, given that it would be difficult for celebrities to know the realities behind the claims. 
 
"There was an alternative view against jail term in the first instance," one of the <a href="http://economictimes.indiatimes.com/industry/services/advertising/celebrities-likely-to-face-fines-not-jail-for-misleading-advertisements/articleshow/53936309.cms">ET</a> sources said. "It was suggested that a more desirable provision could be imposition of exemplary monetary penalty for misleading endorsements." 
 
The monetary fine could be as high as Rs 1 crore, which would, as per the meeting, be an exemplary penalty. 
 
The meeting also saw recommendations being made for dividing products into three broad categories - general, food and medicine, and deciding penalties accordingly. It also discussed that celebrities should not blindly announce what’s told to them, and should observe due diligence. 
 
The debate regarding these ads started last year when celebrities endorsing Maggi noodles, which was <a href="http://www.businessinsider.in/If-you-thought-Maggi-ban-affected-the-brand-the-most-you-have-no-idea-what-1100-Maggi-plant-workers-went-through/articleshow/48651139.cms">banned for some time</a> for containing excessive lead, faced wrath for misleading their fans into consuming something hazardous. 
 
Also read: <a href="http://www.businessinsider.in/Nestle-India-losses-from-Maggi-ban/articleshow/52253428.cms">Nestle India is yet to recover from the Maggi ban, reports 19% slip in net profits</a> 
 
The final decision is yet to be taken by the group, which would meet again for this purpose. 
 
<a href="http://www.franchiseindia.com/uploads/news/ri/amitabh-bachchan-seeks-dismissal-93e546965a.jpg">Image source</a>

No jail sentence, only monetary fine for celebrities for misleading ads

<img class="gwt-Image" src="/photo/49584023.cms" style="width: 800px; height: 600px;" /> Though <keyword id="75190" type="CITY" weightage="100" keywordseo="Nestle">Nestle</keyword> tried its best to not let the <keyword id="2880611" type="UNKNOWN" weightage="100" keywordseo="Maggi-controversy">Maggi controversy</keyword> affect it, it did hit it hard. There was a 60% drop in consolidated net profit (Rs 124 crore, down from Rs 311 crore during the corresponding year-ago period) for the quarter ended September '15, the company announced. <keyword id="6369404" type="PERSON" weightage="100" keywordseo="Maggi">Maggi</keyword> noodles, Nestle's biggest brand in India contributed close to 30% to the company's sales before it was banned in June. 

	The silver lining to it all is that the company would soon recover from the losses incurred as production of Maggi has begun, as announced by Nestle. But it would enter the market only when it passes a second round of tests.

	 
	 
	(Image credits: Indiatimes)

Maggi hits Nestle hard, 60% drop in net profit

<img class="gwt-Image" src="/photo/48234955.cms" /><a href="http://www.businessinsider.in/searchresult.cms?query=suresh+narayanan">Suresh Narayanan</a>, who was appointed as <keyword id="6356830" type="CITY" weightage="100" keywordseo="Nestle-India">Nestle India</keyword>’s MD last week, has a tough job at hand, to re-introduce instant <a href="http://www.businessinsider.in/searchresult.cms?query=maggi+ban">Maggi noodles</a> and regain consumers’ trust in the brand. 
 
Wan Ling Martello, executive vice-president at Nestle SA and one of the company's directors, is also in Delhi to oversee the transition in India. 
 In a joint interview to Economic Times, they said the company is eager to bring back <keyword id="726194" type="UNKNOWN" weightage="100" keywordseo="maggi-noodles">Maggi noodles</keyword>. 
 
In this regard, Narayanan said he will resolve the issue through dialogue and engagement with all stakeholders, denying that <a href="http://www.businessinsider.in/searchresult.cms?query=nestle+india">Nestle India</a> was ‘on the brink’. 
 
“Deep down in my gut, the words that come to me are, 'we shall overcome.' I want to tell Maggi consumers--trust me, trust my brand. It is safe. To all employees, colleagues and associates who have been on the cause of Nestle for years, I just want to say--you can trust me,” he told ET. 
 
When ET asked Nestle has replaced an expat CEO with an Indian to clean up the mess, Narayanan’s boss Martello said, “Suresh is Indian. But he was in Singapore, Egypt, Philippines. He has capabilities. The last bit was the icing on the cake--that Suresh happens to be Indian. As we look at appointments, it very much depends on at what stage and lifecycle the business is. We also look at what's good for the individual. We have not had an Indian MD (in India) but we have so many Indians in senior management positions (globally). I know Suresh's track record. He has the ability to inspire a team and nurture talent,” she said. 
 
Maggi noodles was banned in India and taken off-shelves after <a href="http://www.businessinsider.in/searchresult.cms?query=FSSAI">FSSAI</a> found MSG and excess lead content in the popular noodles. 
 
When asked why Nestle India took 10 days to issue its first statement, Martello said that the incident was unfortunate incident and they will collectively reflect on what happened. 
 
“I was not here. The local team was working with the centre. We were also getting test results. I don't want to dwell on what could have gone well. We should have probably gone on TV and be seen eating a bowl of Maggi noodles. I mean, look, I heard a lot of that comment. And you're right. Perception becomes reality. Do you think media handled it properly? There was a bit of a trial by media as well,” she told ET, reiterating the company’s claim Maggi product is safe and they have proof points. 
 
“We've got black and white data. We look forward to engaging with different stakeholders, we expect to engage with FSSAI 100%. The irony of it all is that our interest and objectives are completely aligned with the <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+government">Indian government</a>. We do like a hundred million tests across the Nestle group. We have on a global basis 8,000 QA (quality assurance) people... 300 here in India. Whatever category it is, we test more than other people,” Martello told the financial daily. 
 
Meanwhile, when asked if re-introducing Maggi would be a major challenge, Narayanan said that every assignment has had a different challenge. 
“The four and half years I spent in Egypt, Libya and Sudan were the most challenging. Each of the assignments has had a facet that has been energising and stimulated me to give my best,” he said. 
 
“I don't have a magical wand. It will be consistent, systematic hard work. We will step up engagement with government. I am not confrontational. For us quality is trust,” Narayanan told ET. 
 The <keyword id="2880611" type="UNKNOWN" weightage="100" keywordseo="Maggi-controversy">Maggi controversy</keyword> came at a time when <a href="http://www.businessinsider.in/searchresult.cms?query=prime+minister+narendra+modi">Prime Minister Narendra Modi</a> was pitching for his ‘<a href="http://www.businessinsider.in/searchresult.cms?query=make+in+india">Make in India</a>’ initiative across the globe. 
 
If India's image in the world outside as a safe destination for investment was hit or not, to this Martello replied, “We've been in India 102 years. We've always been part of the solution versus part of the problem. We have half a million people we touch indirectly. We buy over 90% of our ingredients locally. Think about our suppliers impacted by this. We've been trying to engage with the government to try to get this issue resolved. We should be able to show the world that the government and industry can come together for the good of the Indian consumer.” 
 
(Image: Rajasthanpatrika)

‘Maggi is safe. Trust me, trust my brand,’ says Nestle India’s new MD

<img class="gwt-Image" src="/photo/47582668.cms" /><keyword id="6356830" type="CITY" weightage="80" keywordseo="Nestle-India">Nestle India</keyword>, which is recalling Maggi from the market citing customers’ faith has been shaken, now has another issue to struggle with. 
 
The company would not be able to access and recall as much as 35-40% of the total stock across the country as millions of outlets selling Maggi are outside the company's direct network. 
 
Nestle directly reaches around two million outlets where it sells products through its own distributors or wholesalers. But, according to a data by market researcher Nielsen, the company’s products reach 47% of India's estimated 8.8 million retail outlets. 
 
This means, over two million stores that sell Maggi are serviced through middlemen, semi-wholesalers or even larger kirana owners. 
 
"At any given time, about 40% of the products are difficult to trace in the complex trade system," Mayank Shah, deputy marketing manager at Parle Products, told Economic Times. 
 
"We can always go to wholesalers where we supplied products directly, but there are villages with less than 2,000 people where products are distributed by semi-wholesalers in small batches. To get those packs back is neither possible nor economical," Shah further said. 
 
The financial daily reported that even if Nestle was able to recall 100% of the Maggi stock from its distribution network, it would still not be able to reach at least half the total outlets resulting in about one-third of the product by volume being left on shelves. 
 
"Recall is difficult to implement and it won't be efficient in rural areas," Abneesh Roy, associate director at Edelweiss Securities, told ET. 
 
RS Sodhi, managing director at Gujarat Co-operative Milk Marketing Federation that makes Amul dairy products, told the financial daily that a complete pullout of Maggi from the Indian market will be complex considering the deep penetration of the product into every nook and corner of the country. 
 
"It will take 5-7 days for distributors to withdraw the stocks from retailers. But in smaller towns and villages, unless the distributors reach out to the smallest retailer, the stocks will remain, which is what may become a big challenge," said Sodhi. 
 
A senior executive with a retail chain that had stopped selling Maggi on its own told ET that its contract with Nestle ensures the company will take back all unsold stock. 
 
Despite the recall, some online grocery sellers were selling Maggi till late Saturday. While most popular online players had stopped selling the product, orders could be placed for as many as 40 packs on sites such as OneKirana and WeAreOpen. 
 
OneKirana founder Megha Singh said a few orders were accepted by mistake. 
 
(Image: Indiatimes)

Nestle India hits roadblock in re-calling Maggi. More than 40% stock out of its reach

<img class="gwt-Image" src="/photo/47527037.cms" /> After the much discussed <keyword id="2880611" type="UNKNOWN" weightage="20" keywordseo="Maggi-controversy">Maggi controversy</keyword>, celebs who endorsed the merchandise in the past are quizzed. A district court in Bihar’s Muzaffarpur has directed the cops to file a complaint against <keyword id="2878870" type="UNKNOWN" weightage="20" keywordseo="Maggi-brand-ambassadors">Maggi brand ambassadors</keyword> counting <keyword id="6357912" type="PERSON" weightage="20" keywordseo="amitabh-bachchan">Amitabh Bachchan</keyword>, Madhuri Dixit and <keyword id="8145" type="PERSON" weightage="20" keywordseo="Preity-zinta">Preity Zinta</keyword>. 
 
Celebrities refused to make any comment on the matter after ET tried to reach out to them just after the news came out. In fact, what we heard those saying is that they have become a soft target in a fiasco. 
 Bollywood actor and singer <keyword id="6354535" type="PERSON" weightage="20" keywordseo="Ayushmann-Khurrana">Ayushmann Khurrana</keyword> said that "Fame is a double-edged sword". <keyword id="289" type="PERSON" weightage="20" keywordseo="madhuri-dixit-nene">Madhuri Dixit Nene</keyword>’s lawyer <keyword id="166222" type="PERSON" weightage="20" keywordseo="Anand-Desai">Anand Desai</keyword> on the other hand, turns down the reports saying that the actor did not received any <keyword id="54048" type="ORGANIZATION" weightage="20" keywordseo="Food-and-Drug-Administration">Food and Drug Administration</keyword> (FDA) notice. 
 
Not just this, but Big B also declined the reports saying "I have not received any notice yet. So I cannot make any comment. If it (notice) is received, my lawyers shall attend to it. It would be inappropriate to comment on a matter that is subjudice." 
 "It's sad and true that known faces get targeted for the wrong reasons and agendas just to seek attention. It's unfortunate because it becomes like a cry wolf syndrome; the day there will actually be someone with a justified reason and cause, it will not be given the importance it possibly deserves," said actor <keyword id="114453" type="PERSON" weightage="20" keywordseo="Arjun-Kapoor">Arjun Kapoor</keyword>, who recently faced public ire over his participation in the AIB Roast. 
 According to social commentator <keyword id="115728" type="PERSON" weightage="20" keywordseo="Santosh-Desai">Santosh Desai</keyword>, the primary responsibility lies with the FDA and they have yet to figure out that what actually is wrong. Then how do you expect the stars to do it? 
 
"If a product has been passed by the FDA, why would a celebrity not believe that all is in place? Yes, it merits an investigation but in the case of anything being amiss, the primary responsibility lies with the FDA not the stars. It is a completely irrelevant fact, it is just that everyone feels important by association with the stars," he added.

Amitabh Bacchan, Madhuri Dixit say they haven’t received any legal notice for endorsing Maggi yet

<img class="gwt-Image" src="/photo/50639384.cms" /> 
ITC's instant noodles brand <a href="http://www.businessinsider.in/searchresult.cms?query=Sunfeast+YiPPee">Yippee</a> has made the most out of the controversy that hit <a href="http://www.businessinsider.in/searchresult.cms?query=Nestle">Nestle</a>'s <a href="http://www.businessinsider.in/searchresult.cms?query=Maggi">Maggi</a>. It will soon become a Rs 1,000 Crore brand. 
 
"<a href="http://www.businessinsider.in/searchresult.cms?query=Sunfeast+YiPPee">Sunfeast YiPPee</a>! as a brand is now in its fifth year post the national rollout... We are proud to say that Yippee Noodles is poised to enter the Rs 1,000 crore club in the ITC Foods stable," ITC Ltd Divisional Chief Executive, Foods Division V L Rajesh told PTI. 
 
Explaining <a href="http://www.businessinsider.in/searchresult.cms?query=Sunfeast+YiPPee">Yippee</a>'s growth pre- and post-<a href="http://www.businessinsider.in/searchresult.cms?query=Maggi">Maggi</a> ban, rajesh said it was "growing at more than 40% before the controversy broke out..., with all the competitors in the market". 
 
"The controversy and confusion that prevailed adversely affected the whole industry. However, with our proactive inputs and innovative campaigns, we were the fastest to recover and then exceed our old sales levels," Rajesh added. 
 
The company's campaigns had focused on "world-class product and manufacturing processes", he said. 
 
Image credit: Indiatimes

ITC's Yippee cashes into Maggi controversy, nearing Rs
1,000-crore mark

<img class="gwt-Image" src="/photo/47814629.cms" /> <keyword id="6356830" type="CITY" weightage="80" keywordseo="Nestle-India">Nestle India</keyword> is already recovering from the impact of the Maggi controversy. Its shares shot a steady 10% after its flagship brand Maggi was found to possess excess lead and MSG. 
 
The food scare was enough to kick-off a series of cartoons and memes. Several pictures of Maggi being dumped have also been doing the rounds on social media. 
 
Here are the top 5 pictures that define Maggi’s condition best: 
 
<img class="gwt-Image" src="/photo/47814689.cms" /> 
(Image credit: Filmygyan) 
 
<img class="gwt-Image" src="/photo/47814699.cms" /> 
(Image credit: Filmygyan) 
 
<img class="gwt-Image" src="/photo/47814711.cms" /> 
(Image credit: Imgur) 
 
<img class="gwt-Image" src="/photo/47814805.cms" /> 
(Image credit: Imgur) 
 
<img class="gwt-Image" src="/photo/47814704.cms" /> 
 
One even managed to poke fun at the irony of the current scenario: 
 
<blockquote class="twitter-tweet" lang="en">
	
		Media's Maggi! Sify cartoon <a href="https://twitter.com/hashtag/MaggiBan?src=hash">#MaggiBan</a> <a href="http://t.co/oWYYF5UcTE">pic.twitter.com/oWYYF5UcTE</a>
	— Satish Acharya (@satishacharya) <a href="https://twitter.com/satishacharya/status/606440115087417345">June 4, 2015</a></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script> 
(Image credit: Indiatimes)<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

5
pictures that define Maggi’s final resting ground best

<img class="gwt-Image" src="/photo/47782306.cms" /> 
Last two months have made consumers aware. Thanks to Maggi controversy, people buying food items at retail stores are looking at the back of the pack more attentively to check the nutritional information and the date of manufacture. The retailers are now demanding to shrink the timeline of delivery in the stores from manufacturers’ end to ensure fast movement of products. 
 
A news report in The Economic Times informs, products take an average of at least 10 days to reach store shelves from the plants, except for perishables such as dairy products, which are delivered overnight. Retail development in the country has been impeded by poor roads and the lack of a cold-chain infrastructure. 
 
Retailers have started to request for fresher stock with higher shelf life. While modern trade always had shelf-life policies, it is getting stringent now," Mayank Shah, deputy marketing manager at top biscuits maker Parle Products told The Economic Times. 
Reliance Retail has introduced an extra round of safety checks across products in its 600 stores amid fears of a consumer backlash if a sub-standard or expired product is sold, said a person familiar with the development. 
 
"Any product that has 70% of its shelf life remaining does not enter our stores," an executive of Reliance Retail said. 
 
The FSSAI is preparing an adviso- strinry for retailers, which will hold them accountable for products they sell, including any that haven't been approved. 
 
Yudhvir Singh Malik, the CEO of the food regulator, told ET last week that retailers could be vulnerable to regulatory and legal action if found to be defaulting on these parameters. 
 
Tata Starbucks has earlier said, it has "initiated the suspension of applicable ingredients from certain products served in our stores" and is providing the regulator with documentation needed for its pending applications. 
 
Organised grocery chains including Big Bazaar, Walmart India's Best Price Modern Wholesale, Easy Day, Nilgiris, K Raheja's HyperCity, Savemax Wholesale and Spar had started pulling Maggi off the shelves even before the FSSAI ban on the two minute snack and Nestle's recall. 
 
"As a policy, we accept only those products which have 75% of their shelf life when they hit our stores," a senior official of a leading supermarket firm told the financial daily. He also added that most national companies have plants spread across the country and it's not always possible to distribute their products within a short span of time. "In the case of beverages or food products, where shelf life is less than a week, companies tend to keep production facilities near retail locations since most of them are regional players." 
 
Following the Maggi controversy, a top consumer goods firm has postponed two launches, while some are allocating additional funds for research and development. "We are stepping up spends on product testing, especially in collaboration with external labs," Sunil Duggal, CEO at Dabur, which makes Real juices, told the ET. 
 
(Image: Reuters)

Maggi Fallout: Retailers want products from the factories within 5 days of manufacturing

<img class="gwt-Image" src="/photo/49831931.cms" style="height: 600px; width: 800px;" />The Patanjali Yogpeethv(Trust) promoted by yoga teacher Baba <a href="http://www.businessinsider.in/searchresult.cms?query=ramdev">Ramdev </a>on Wednesday rubbished allegations of having violated Food Safety and Regulatory Authority of India (<keyword id="154680" type="ORGANIZATION" weightage="100" keywordseo="FSSAI">FSSAI</keyword>) guidelines for its Patanjali Atta <keyword id="60202" type="UNKNOWN" weightage="100" keywordseo="Noodles">Noodles</keyword>. 

	"We have followed all <a href="http://www.businessinsider.in/searchresult.cms?query=FSSAI">FSSAI </a>rules and guildelines and committed no violation," said Ramdev's spokesman SK Tijarawala. 
 

	His response came a day after the FSSAI hit out at the brand for not seeking mandatory approvals.
 

	The noodle brand made headlines and grabbed social media attention when Ramdev's pictures of scooping up noodles flashed all over early this week.

	 
	However, with FSSAI chairman Ashish Bahuguna having stated that the instant noodle brand is yet to obtain mandatory approvals from the food regulator, the brand has come under scrutiny subduing the fanfare launch amid Nestle Maggi controversy and the latter's relaunch during Diwali.
 

	A statement issued by Patanjali Yogpeeth (Trust) said that <a href="http://www.businessinsider.in/searchresult.cms?query=Patanjali+">Patanjali </a>Ayurved Ltd and <keyword id="1963293" type="UNKNOWN" weightage="100" keywordseo="Patanjali-Food-and-Herbal-Park">Patanjali Food and Herbal Park</keyword>, Hardwar have obtained a relabeling license (license number 1001401200026) from FSSAI which is valid until February 20, 2019. 

	The relabeling license permits it to get (source) noodles from companies which have FSSAI approval to manufacture noodles. "We have FSSAI license for pasta under Central category and noodles falls under pasta as per FSSAI guidelines," it added. 
	 
	(Image credit: Economic Times)

Our noodle brand hasn't violated FSSAI norms: Patanjali Yogpeeth

<img class="gwt-Image" src="/photo/47869387.cms" />

	 The instant noodles market is in a tizzy following the <keyword id="13633" type="PERSON" weightage="20" keywordseo="Maggie">Maggie</keyword> crisis. After <keyword id="75190" type="CITY" weightage="20" keywordseo="Nestle">Nestle</keyword>’s Maggie, Indo Nissin too has withdrawn its instant noodles brand <keyword id="411842" type="UNKNOWN" weightage="20" keywordseo="Top-Ramen">Top Ramen</keyword> from the market n receiving orders from central food safety regulator FSSAI. According to a report by ET, the Maggie controversy also forced FMCG giant Hindustan Unilever to withdraw its <keyword id="270000" type="COMPANY" weightage="20" keywordseo="Knorr">Knorr</keyword> instant noodles brand over safety and regulatory issues. It should be noted that earlier this month, FSSAI had issued an advisory regarding product safety testing of all instant noodle products in the country after high lead and MSG content was found beyond the permissible limit. 
	 
	"At that time we had sought clarification from FSSAI since Top Ramen product approval is pending with the regulator. They have requested us to withdraw the product until they give the product approval," said Gautam Sharma, managing director of Indo Nissin Foods Pvt Ltd in a statement. 
	 
	He added that the product was tested extensively in the past few weeks after safety concerns were raised by the food authority in the category. "We have tested at two FSSAI accredited independent laboratories and shared the results with FSSAI a few weeks ago. While many Top Ramen samples have been tested by various state FDAs across India, only in two cases - slightly higher lead level has been found in the tastemaker," he noted. 
 
Image: Indiatimes.com

Deep Impact! After
Maggie and Knorr, Top Ramen leaves the shelf!

<img class="gwt-Image" src="/photo/49657124.cms" /> 
It’s official! <a href="http://www.businessinsider.in/Maggi-will-be-back-in-December/articleshow/49627185.cms">Maggi Noodles Masala</a> will be back in shelves across India this month onwards.<a href="http://www.businessinsider.in/Maggi-hits-Nestle-hard-60-drop-in-net-profit/articleshow/49583972.cms"> Nestle</a> today said in a statement that 100% of the new samples sent for tests have passed with lead levels far below the ‘permissible limits’. 
 <keyword id="75190" type="CITY" weightage="100" keywordseo="Nestle">Nestle</keyword> said, “<keyword id="726194" type="UNKNOWN" weightage="100" keywordseo="maggi-noodles">Maggi noodles</keyword> are safe, 100 pct of samples sent from newly manufactured stocks tested by three laboratories have been cleared. all the samples of <keyword id="6369404" type="PERSON" weightage="100" keywordseo="Maggi">Maggi</keyword> noodles masala have been cleared with lead much below permissible limits.” 

	The company also said that even countries like Australia, USA, UK and Singapore, where Maggi Noodles manufactured in India were exported to, have found it safe for consumption.
 

	This surely comes as a huge relief for the multinational giant, which has been on its back foot in India ever since the <a href="http://www.businessinsider.in/Maggi-row-Amitabh-Bachchan-Preity-Zinta-and-Madhuri-Dixit-may-be-arrested/articleshow/47515119.cms">‘Maggi’ controversy</a> tore through its fabric in its Indian operations, making it one of the largest recall of products in FMCG history.
 

	The Bombay High Court recently had directed Nestle India to also get fresh samples of <a href="http://www.businessinsider.in/Nestle-claims-Maggi-is-safe-product-withdrawn-off-shelves-to-allay-consumer-fears/articleshow/47552114.cms">Maggi noodles tested by the labs</a> and once they get the approval, Maggi will be back with new packaging, instructions and the same-old taste.
 

	Production of Maggi noodles has, reportedly, resumed in Karnataka, Punjab and Goa. 
 

	<a href="http://www.businessinsider.in/Maggi-is-safe-to-eat-but-no-clean-chit-yet/articleshow/48357851.cms">Maggi noodles was banned in India</a> in June after MSG and excess content of lead was found in the packets. 
 

	This dented the image and revenue sales of Nestle India as Maggi used to be its biggest brand, accounting for about 30% of sales at the company.
 

	However, it is expected that Nestle India’s Maggi will recover the losses. The company has started rigorous advertising for Maggi's return. 
 

	Edelweiss in a note stated had stated earlier "We appreciate the company's effort to up the ante on advertising and promotions, but this will depress margins in the coming quarters. We believe Nestle is unlikely to garner the earlier 70% share of the noodle pie.”

	 
	 
	(Image credits: Indiatimes)

Maggi: Return of the prodigal ‘instant noodle’ brand!

<img class="gwt-Image" src="/photo/49179333.cms" />‘Food’ to have a new meaning in India post Maggi debacle 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=maggi">Maggi</a> controversy comes as an eye opener for the <a href="http://www.businessinsider.in/searchresult.cms?query=fssai">Food Safety and Standards Authority of India (FSSAI).</a> The <a href="http://www.businessinsider.in/searchresult.cms?query=central">central government</a> has planned to change the definition of food to widen its scope and close loopholes. 
 
The new definition will exclude nutraceuticals, health supplements, functional food and dietary supplements, which will be subject to tougher <a href="http://www.businessinsider.in/searchresult.cms?query=regulations">regulations</a>, a news report in The Economic Times has suggested. 
"The earlier definition of food had certain loopholes of which some companies, especially pharma companies, were taking advantage," a senior official in the ministry of health told the financial daily. "Since <a href="http://www.businessinsider.in/searchresult.cms?query=preservatives+">regulations are more stringent for pharma products</a>, companies tried to pass off nutraceuticals and health supplements as food, where regulations are slightly relaxed,” he added. 
Food Safety and Standards Act, 2006, defines food as "any substance, whether processed, partially processed or unprocessed, which is intended for human consumption and includes primary food." It excludes "drugs and medicinal products, cosmetics, narcotic or psychotropic substances." 
 
Traditional food, which is described as food that has been and is "traditionally being consumed in the country" will be broadened to "food which is prepared in accordance with the knowledge normally transmitted from one generation to another, conforms to the gastronomic heritage of the country, or local area, or region of the country, with little or no processing or manipulation through addition of preservatives or otherwise and retains the sensory property." 
 
As said on its website, the govt plans to review and amend the Food Safety and Standards Rules, 2011. It sought suggestions and comments from stakeholders by September 24. While a ministry can change rules, an act can be amended only in parliament. Representatives of the food industry, citing procedural lapses in the proposed changes, have alleged that the government wants to "sharpen their teeth and extend their reach beyond the normal to targthe industry." 
 
"It is not understood as to how and why all of a sudden an unscientific and adhoc, restrictive definition has been flashed to food industry for comments," Amit Dhanuka, president of the All India Food Processors' Association told the ET. The industry bodies said the government is trying to avoid a discussion on the matter.

‘Food’
to have a new meaning in India post Maggi debacle

<img class="gwt-Image" src="/photo/47626718.cms" />To strengthen and empower consumer bodies across India, the <keyword id="393956" type="ORGANIZATION" weightage="80" keywordseo="Ministry-of-Consumer-Affairs">Ministry of Consumer Affairs</keyword> will meet with various state representatives by month end to make them aware about the recent <keyword id="6369404" type="PERSON" weightage="80" keywordseo="Maggi">Maggi</keyword> controversy through a case study and how to deal with such issues, according to an ET report. 

	"The basic idea is to strengthen and empower consumers and Maggi can be used as a case study for that," said a senior official at the Ministry of Consumer Affairs, Food and Public Distribution. 
 The ministry is also working on <keyword id="55514" type="ORGANIZATION" weightage="80" keywordseo="Consumer-Protection">Consumer Protection</keyword> Amendment Bill and plans to add a new clause on unfair trade practices and misleading ads in the proposed bill. It will be later send for Cabinet approval. "We have always been proactive on issues that consumers face after they have bought products and feel cheated or unsatisfied. But we also want the new policy to cover concerns before or during the product is being sold," the official said. Earlier, the government dragged <keyword id="75190" type="CITY" weightage="80" keywordseo="Nestle">Nestle</keyword> to the <keyword id="132180" type="ORGANIZATION" weightage="80" keywordseo="National-Consumer-Disputes-Redressal-Commission">National Consumer Disputes Redressal Commission</keyword> (<keyword id="103254" type="ORGANIZATION" weightage="60" keywordseo="NCDRC">NCDRC</keyword>) for "unfair trade practices and misleading advertisements" after several states banned Maggi instant noodles when tests showed them containing taste enhancer <keyword id="6369288" type="ORGANIZATION" weightage="80" keywordseo="MSG">MSG</keyword> (Mono Sodium Glutamate) and lead in excess of permissible limits. 

	But even as it snowballed into a major issue over the past fortnight, Nestle has been relentlessly defending its product, claiming it is safe for consumption, even as it announced a nationwide recall on Friday. 
 

	A representative of Nestle's consumer grievances cell said the company has set aside a dedicated team to address any issue on Maggi and its recall. "We can send our people to get Maggi packs collected from homes in case retailers refuse to accept them," the person said. 
 

	Experts feel that the country's consumer laws need to be overhauled to give Indian consumers larger protection and improved services. 
 Buyers take their complaints to consumer courts, but they cannot order any investigation. “There are talks of setting up a national consumer protection authority which can independently investigate consumer complaints. The government must take concerted action in this regard," Rakesh Nangia, managing partner at Delhi-based tax consultancy firm <keyword id="2632542" type="COMPANY" weightage="80" keywordseo="Nangia-Co">Nangia &amp; Co</keyword> told the financial daily. 

	The existing laws in India date back nearly two decades, with many concepts remaining unchanged since then. The consumer affairs ministry is keen to introduce the bill to amend the Consumer Protection Act, 1986, in the monsoon session of the Parliament. 
	 
	(Image: Indiatimes)

Maggi effect: Centre to meet state representatives to empower consumer bodies

<img class="gwt-Image" src="/photo/49337427.cms" /> 
It’s all set to be a ₹5,000 Crores company by next March, and is headed by a Yogi. It has effectively demolished all set notions of business, finance and marketing. In an age where companies spend as much as 70% of their earnings on marketing, this ‘desi’ <a href="http://www.businessinsider.in/searchresult.cms?query=FMCG">FMCG</a> brand expends a few pennies at the most. Yet, <a href="http://www.businessinsider.in/searchresult.cms?query=Kishore+Biyani">Kishore Biyani</a>, CEO, <a href="http://www.businessinsider.in/searchresult.cms?query=Future+Group">Future Group</a> expects sales revenue of about ₹1,000 Crores in the next 3 years from his partnership with this brand. We’re talking of the ‘swadeshi’ <keyword id="34523" type="CITY" weightage="100" keywordseo="fmcg">FMCG</keyword> giant – <a href="http://www.businessinsider.in/searchresult.cms?query=Patanjali+Ayurved">Patanjali Ayurved</a>. 
 
BI India chatted up with <a href="http://www.businessinsider.in/searchresult.cms?query=Acharya+Balkrishna">Acharya Balkrishna</a>, Managing Director of <a href="http://www.businessinsider.in/searchresult.cms?query=Patanjali+Ayurved">Patanjali Ayurved</a> to get a rare glimpse into this unconventional business machine that’s raking in the moolah like never before. 
 
1. How did Patanjali begin? 
We’ve always focused on the needs and demands of the people of the country. That led to the inception of the brand. Our focus has always been on <a href="http://www.businessinsider.in/searchresult.cms?query=Yoga">Yoga</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Ayurveda">Ayurveda</a>. We never planned it to be so big. We wanted to serve the people, and by the grace of the Almighty it has been successful. Without divine intervention this would never have been possible. 
 
2. How difficult was it to create a brand? 
The biggest difficulty was that people who run MNCs never revolt against the government. However, Swamiji spoke up against black money and other pressing issues. You must realize it’s the government that issues certificates and licenses. To stand up to the government and yet establish a brand, it’s a daunting task. We have had over 300 cases registered against us. Yet, we were successful in our protest. Our processes are transparent and in line with the government operations and the love of the people is with us. That’s exactly why the brand has been left unharmed. 
 
3. How do you conduct your market research? 
We’ve never done any market research or market survey. We’ve focused all our efforts on <a href="http://www.businessinsider.in/searchresult.cms?query=R%26D">R&amp;D</a>, product development and quality control. 
 
The initial idea was that MNCs offer the best quality. They had a monopoly over the Indian <a href="http://www.businessinsider.in/searchresult.cms?query=FMCG">FMCG</a> market. Indian brands were expected to lose out on quality. We focused on low price and high quality to demolish this myth. It has worked for us. 
 
4. How do you assess the need for a product? 
We never think of commercial benefits. Our efforts are guided by consumer demand. We surround ourselves with people and understand their sentiments, needs and desires. 
 
Our first products were Aloe Vera Oil and Amla Juice. There was no market for products like these. Nobody ever thought this would sell. It started like this. Amla farmers were in dire losses. We felt we should buy some from them. We knew Amla was very good for your health. Swamiji declared the benefits of drinking Amla juice, and it started to sell. Any corporate trained in market research and planning would call this move a foolish move. 
 
For Aloe Vera Oil we were selling it at as little as Rs. 200. Most MNC priced theirs at around Rs. 1300. Our focus was never on the size of the market, but on the demands of the people. 
 
5. Why don’t you market your products? 
For any <a href="http://www.businessinsider.in/searchresult.cms?query=FMCG">FMCG</a> product you'll have raw material, processing cost and packaging. Nobody gives out of their own pocket. Either one has to increase the price or offer inferior quality. If we invest in marketing we can’t offer low prices. MNCs might try to sell products via marketing, we’ll do the same with quality. 
 
6. Are you worried about the future of your retail outlets after the partnership with <keyword id="44949" type="CITY" weightage="100" keywordseo="Future-group">Future Group</keyword>? 
Our sales would spike from this partnership. Once people see products in malls, try them, and find it’s effective, they’ll become loyal customers of the brand. This would draw them to our brand stores. This would strengthen <a href="http://www.businessinsider.in/searchresult.cms?query=Patanjali">Patanjali</a> as a brand. 
 
7. What are your current expansion plans? 
Our Atta noodles would arrive very soon. We would sell it at half the price of most leading MNCs. We’ll also launch Power Boost – a malt-based children’s health supplement soon. We’re currently focusing on ramping up our R&amp;D operations on this. 
 
8. How did you come across the idea to have your won noodles brand? 
We never planned to enter the ready-to-eat category. Our social media expert spoke up about the <a href="http://www.businessinsider.in/searchresult.cms?query=Maggi">Maggi</a> controversy. The posts went viral. People asked us to offer a healthy alternative to <a href="http://www.businessinsider.in/searchresult.cms?query=Maggi">Maggi</a>. Our R&amp;D team worked on it and started developing. Now we’re a few days from the launch. 
 
9. How do you plan to finance your expansion plans? 
We would get bank loans. We can also loan from partner institutions. There are no plans to look at <a href="http://www.businessinsider.in/searchresult.cms?query=FDI">FDI</a> currently. 
 
10. Do you think your financial model is self-sustainable? 
We’ve come so far based on this model. We started by taking personal loans as well. Patanajali can’t dream to be a global brand overnight. We don’t build castles in the air. This model seems simple and effective to us. 
 
11. Have you broken even? 
In the zeal to expand, when we started there were several problems. We optimized our systems accordingly. We decided to expand as much as we can afford to. It’s as simple as that. 
 
12. Are you looking at other brand partnerships? 
None as of now. We’re always open to more fruitful partnerships that would help better our services. 
 
13. What do you look for in a job candidate before you hire them? 
Our system is corporate, but our culture isn’t. We hire people that share our line of thought. Incidentally they’re also experts in their fields. We don’t hire those who have non-vegetarian fare, consumer tobacco or alcohol. They must be patriotic and spiritual. We routinely receive resumes for consideration. We scan them and choose the best in case of vacancies. 
 
We look at a relationship that can survive the test of time. They work here to serve society, not just to earn money. I personally never charge a rupee as a salary. 
 
14. It’s been in the news that you’re looking to hire executives from top FMCGs. 
If there are people in the system that are willing to come to our side, it’s a different thing. However, we never target specific brands. We haven’t come this far by copying the financial system or policies of any company, and we won’t. We don’t consider these companies as competition. 
 
15. Do you think Swamiji’s share of controversies had a positive or negative impact on the brand? 
The central and state governments were against us when Swamiji stood up against the government’s policies. This means people had faith in us and our brand. Otherwise this would have closed down by now. 
 
 (The following conversation was in Hindi. It has been translated to English with as little loss as possible)

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