Food major says tests found no evidence of contamination; submits quality records and laboratory reports to regulator
Nestle India has denied allegations of insect infestation in a packet of Maggi noodles after the Food Safety and Standards Authority of India (FSSAI) sought clarification following complaints shared on social media.
The company said internal investigations and laboratory testing found no signs of contamination in the concerned batch or in samples collected from the market. Nestle India added that it has submitted manufacturing records, quality-control data and laboratory findings to the regulator as part of its response.
“We categorically reject the allegations circulating on media basis an unverified account regarding the presence of infestation, allegedly on Maggi noodles,” a Nestle India spokesperson said in a statement.
The company also said it has not yet received the product sample linked to the complaint.
“We are yet to receive the complaint sample from the complainant as the account is unreachable,” the statement added.
The issue gained attention after social media posts allegedly showed larvae inside a Maggi noodles packet, prompting regulatory scrutiny. The development weighed on investor sentiment, with Nestle India’s shares declining 3.29 per cent during Friday’s trading session.
The stock opened at Rs 1,431.10 and settled at Rs 1,375.70.
Reiterating its commitment to food safety, the company said it adheres to stringent quality standards across its manufacturing facilities and is cooperating fully with authorities.
“Nestle India maintains stringent quality and food safety standards across its manufacturing operations. We remain fully transparent with the authorities and are confident that the facts and evidence will conclusively establish the truth of the matter,” the spokesperson said.
According to the company, testing was conducted on both batch-specific and market samples through an FSSAI-accredited laboratory.
“We have performed our quality analysis on batch and market samples, for a comprehensive investigation to FSSAI Accredited lab and the report confirms with the quality standards including confirmation of absence of infestation of any nature,” the statement added.
Royalty Outgo Rises
Separately, Nestle India’s latest annual report showed that payments made to its Swiss parent, Société des Produits Nestlé S.A., under general licence agreements increased 13.91 per cent year-on-year to Rs 1,024.5 crore in FY26.
The company also paid Rs 102.47 crore as withholding tax on these royalty payments during the financial year ended 31 March 2026. In FY25, royalty payments stood at Rs 899.41 crore, while withholding tax amounted to Rs 89.71 crore.
The agreements provide the Indian subsidiary access to the Nestlé Group’s intellectual property, brands, technology and manufacturing expertise. Under the current arrangement, Nestle India pays a royalty of 4.5 per cent of net sales.
As of 31 March 2026, promoter entities Nestlé S.A. and Maggi Enterprises collectively held a 62.76 per cent stake in the company.
“During the financial year ended 31st March 2026, there was no material modification in the terms and conditions of General Licence Agreements, as defined by the Audit Committee and specified in the RPT Policy,” the annual report said.
The disclosure comes after shareholders rejected a proposal to increase the royalty rate by 0.15 percentage points annually over five years, which would have raised the rate to 5.25 per cent. The proposal, placed before shareholders in July 2024, failed to secure the required approval.
Nestle India reported revenue from operations of Rs 23,071.46 crore in FY26, up 14.2 per cent from the previous financial year, supported by demand for brands such as Maggi, Nescafe, KitKat, Milkmaid and Cerelac.
