Nestle India's market cap drops by Rs 8,137.49 cr as shares fall more than 3%

Nestle India shares decline over 3 pc; mcap erodes by Rs 8,137.49 cr

Shares of Nestle India on Thursday declined over 3 per cent amid reports that the global FMCG major sold infant milk products with more sugar content in less developed countries.

The stock dipped 3.31 per cent to settle at Rs 2,462.75 on the BSE. During the day, it went lower by 5.40 per cent to Rs 2,409.55.

It was the biggest laggard among the BSE Sensex firms.

At the NSE, shares of the company declined 2.94 per cent to settle at Rs 2,471.

The company's market capitalisation (mcap) eroded by Rs 8,137.49 crore to Rs 2,37,447.80 crore.

Nestle India on Thursday said it has reduced added sugar on baby food products in India by over 30 per cent, depending on variants, over the past five years, amid reports that the global FMCG major sold products with more sugar content in less developed countries.

According to findings by Swiss NGO, Public Eye and International Baby Food Action Network (IBFAN), Nestle sold baby products with higher sugar content in less developed South Asian countries including India, and African and Latin American nations as compared to its markets in Europe.

When reached out for comments, a company spokesperson said, ''Reduction of added sugars is a priority for Nestle India. Over the past 5 years, we have already reduced added sugars by up to 30 per cent, depending on the variant.'' The spokesperson further said, ''We regularly review our portfolio and continue to innovate and reformulate our products to further reduce the level of added sugars, without compromising on nutrition, quality, safety, and taste.'' Nestle India asserted that its ''infant cereal products are manufactured to ensure the appropriate delivery of nutritional requirements such as protein, carbohydrates, vitamins, minerals, iron etc. for early childhood''.

''We never compromise and will never compromise on the nutritional quality of our products. We constantly leverage our extensive global research and development network to enhance the nutritional profile of our products,'' the spokesperson said.

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