- LALIT VIRMANI (Author is an Ex-Banking Executive)
First time in 30 years, lost market of Maggi, due to ban by authorities, has resulted in 1st Quarter loss as the sales of Nastle India reported dip by more than 20%. Maggi had been very popular in the masses.
|Maggi Ban Loss|
|Jun 14 Qtr||Jun 15 Qtr||% Change|
|Income from Operations||2432||1957||-20|
Amount in INR Crores Source: Nastle
The ban on Maggi resulted in almost Rs.288 Crores of turnover loss due to recall of the product from the market. In 2014 the sales of Maggi contributed around 25% to the company’s total sales of Rs.9800 Crores. The Ban has hit the product very hard.
At so many platforms, the company’s policies had been criticised for depending, to much, upon only one product whereas the company’s rival products of Maggi could not do better in this process.
It is known from the reliable sources that Nastle Switzerland has transferred their India MD Mr. Etienne Benet back to Switzerland and is being replaced by Mr. Suresh Narayanan, Chairman and CEO of Nastle Phillipines.