Nestle India shares unfazed by Maggi's lab test failure

NEW DELHI: Shares of Nestle India on Wednesday were largely unfazed by reports that the district administration of Shahjahanpur, UP, has slapped a fine on Nestle India and its distributors after its popular noodles brand Maggi allegedly failed to pass the lab test.

The FMCG major maintained that it's a case of application of incorrect standards.

The stock ended flat at Rs 7,480, down 0.22 per cent on BSE.

The district administration had imposed a fine of Rs 45 lakh on Nestle India, Rs 15 lakh on its three distributors and Rs 11 lakh on its two sellers, PTI reported.

According to the district authorities, samples were collected last year in November. They were sent for lab test. Later, ash content was found above the permissible limits of human consumption.

Questioning the lab findings, Nestle India said it has not received the order yet and would file an appeal urgently once it receives the order.