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Haccp For Maggi In India Essay

4714 words - 19 pages

ESS 101 Managerial Economics
Group 12
Pushpdeep Bahade
Madhur Bajpai
Rajbarath KR

Background _______________________________________________________________________________________________ 1
Beginning ___________________________________________________________________________________________________________ 1
Recent crisis and effects ___________________________________________________________________________________________ 1
Objective of the report_____________________________________________________________________________________________ 1

Financial analysis ...view middle of the document...

Setting up monitoring procedures for critical control points ___________________________________________ 10


Establishing the corrective actions ________________________________________________________________________ 11


Establish verification procedures _________________________________________________________________________ 12


Establish a record system __________________________________________________________________________________ 13

Implementation ________________________________________________________________________________________ 14
Conclusion ______________________________________________________________________________________________ 15

Nestle India introduced Maggi to the Indian markets in 1983 and the domestic manufacture
started in 90s. Back at that time, instant noodles was an alien concept to India. Through its
sustained marketing efforts, Nestle established the brand Maggi strongly in the minds of
the customers and India became the largest market for Maggi. It grew to become the market
leader with an aggregated market share of ~85% in the INR 4000 Cr instant noodle market.
Nestle derived close to 26% of its annual revenue of 9800 Cr from Maggi. With the
competition from Foodles, Wai Wai, Top Ramen and Yippee increasing over the years, Maggi
settled for a market share of ~65% recently and dominated the market.

Food Safety Authority of Uttar Pradesh found Lead beyond the permissible limits in Maggi
in May 2015. Also, they found traces of MSG, as against the package which states, “No added
MSG”. This resulted in a short term ban on the sale of the noodles. But soon enough 8 other
states followed suit and banned Maggi. Eventually FSSAI (Food Safety and Standards
Authority of India) imposed a nationwide ban on Maggi on 5th of June and ordered Nestle
to recall all stocks. Nestle recalled and incinerated stocks of 27420 tons worth 320 Cr. The
ban has resulted in uncertainty for 1500 direct Nestle employees who were involved in the
manufacturing process.
Nestle India currently exports Maggi noodles to Canada, UK, Singapore and Kenya and to
third parties in the US, Australia and New Zealand. This is a result of an order by Bombay
high court revoking the ban on export. But this is not a great respite to Nestle as only 7% of
its revenue is from exports and much of these exports were made up of milk products and
Maggi was a very minor part of it. As a recent development, Bombay high court has revoked
the ban of Maggi in India and has ordered Maggi to undertake fresh tests before it re-launch
the product in the market.

The objective of this project is to perform a risk assessment and identify the shortcomings
in the manufacturing process. This report discusses the techniques of risk management and
HACCP to standardize the existing process. It also discusses suggests solutions and

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