After the drama that followed the Maggi controversy after the instant noodles were found breaching the prescribed food norms, Nestle India is reassessing all aspects of the brand, including the ingredients.
The company's newly appointed Managing Director Suresh Narayanan acknowledged the controversy saying, “We have a process of introspection in terms of learning in the organisation, in terms of what we did right, what we did not do right... internalise these learnings and move forward.” Nestle has also identified other categories and is looking at opportunities to introduce new products in efforts to overcome the challenge posed by the company's first quarterly loss in over three decades.
“Task number one is to get Maggi back. That's an important part of what I will be focussing on,” Narayanan addressed the media. “It is my endeavour and those of my colleagues that we come to with respect, with cooperation, with support from the authorities, I am not in a confrontational frame... Nestle is a part of this country. We will be a part of this country as we have been for the last 100 years respecting the laws of the land and also respecting all the authorities. It is my hope that we are able to find a solution and we are able to move forward.”
Hit by ban on its Maggi instant noodles, Nestle India reported a standalone loss of Rs 64.40 crore for the quarter ended on June 30, 2015; its first quarterly loss in over three decades. It had posted a net profit of Rs 287.86 crore during the April-June quarter of financial year 2014-15.
“The whole business segment has been dismantled, from procurement to manufacturing to distribution and supply chain. The whole system is now in a state of freeze,” he said, adding he would not “hazard a guess” on how much time it would take to revive it. Asked if it was the end of Brand Maggi if the court verdict goes against the company, he said: “My fervent hope is that we are able to find a solution, resolve the issue, bring Maggi back, and move forward.”
The company will also look at reducing overdependence on one product. Besides Maggi, it will also focus on increasing growth in other product categories such as dairy, coffee and beverages, chocolate and confectionary and nutrition.
“The Maggi journey will continue, but the journey in other categories also needs to be emphasised,” said Narayanan.
