Nestle shares end flat on bourses amid damage control attempts

Capping two days of consecutive losses, shares of Nestle India ended flat today following the damage control attempts by Nestle's global Chief Executive Paul Bulcke amid mounting trouble over the alleged presence of lead and MSG in Maggi noodles.

Shares of the company ended at Rs 5,997.10, down 0.23% on the BSE. During the day, it slipped 4.86% to Rs 5,718.20.

At the NSE, however, the stock ended 0.11% higher at Rs 6,011.60.

Unfazed by mounting trouble over the alleged presence of lead and MSG in Maggi noodles, Nestle today said the product is safe but is withdrawing it from Indian market as "unfounded reasons" have created "confusion" affecting consumer trust.

Nestle's global Chief Executive Paul Bulcke, who flew in from Switzerland to take stock of the situation after Maggi was banned in several states, said the company will cooperate with all authorities to resolve the issue.

India's food safety regulator today ordered recall of all nine approved variants of Maggi instant noodles from the market and banned their production and sale.

As Madhya Pradesh became the sixth state to enforce a ban on the noodles, Bulcke maintained that it was "absolutely safe" for consumption and promised to win the trust of customers and bring the popular snack on the shelves "as soon as possible".