Employee Engagement

By: The Coca-Cola Company

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Maggi ban hits 1,500 Nestle employees as company to move

some of its staff for manufacturing other items
MOGA: The ban on Nestle's Maggi brand and its recall have affected close to 1,500 direct
employees of the company involved in the production of the instant noodles, a
top executive said.
Nestle is relocating some of these employees to manufacture other items like dairy products,
ketchup and infant nutrition. Most of the employees, who have been jobless since Maggi's
production was suspended on June 5, are being involved in "team building and other HR
activities," the executive said. "We haven't asked any of these employees to leave. We are
continuing to pay them salaries and trying to keep them involved," said Satish Srinivasan,
factory manager at Nestle's largest manufacturing factory here.
Maggi noodles, Nestle India's biggest brand with sales of more than Rs 2,000 crore a year,
was being manufactured across five plants. Asked if the company had given the employees a
long-term commitment that it would not fire them, Srinivasan said: "We hope Maggi
production will resume soon. We don't believe such a situation will arise."
Meanwhile, Moga-based Paras Spices, Nestle's largest supplier of spices used in Maggi
noodles, has asked close to 200 of its workers to either "not report to work or work only twothree days a week", promoter Paras Budhiraja said. He said 45% of his company's business
used to come from Nestle. "We are confident of our quality though we are now focusing on
other clients," he said.
There were also reports that a contract worker at Nestle's plant in Uttarakhand had committed
suicide, but there was no confirmation whether it has anything to do with the Maggi
controversy.
The Food Safety & Standards Authority of India (FSSAI) banned the sale of Maggi noodles
on June 5, which it said was based on lab tests that confirmed that the noodles contained lead
and flavour enhancer monosodium glutamate in excess of permissible limits.
Nestle has valued its Maggi noodles stocks at Rs 320 crore, which it is in the process of
recalling. The recall, one of the largest within packaged foods and the largest in the history of
Nestle, will take about 45 days to complete, the company said. "A daily report about the
recall is sent to FSSAI," the executive added.
Maggi noodles stocks, estimated at 27,420 tonnes, are being incinerated at five cement
factories. Nestle said while stocks of Maggi noodles worth Rs 210 crore were being
withdrawn from the market, another Rs 110 crore worth of finished and related material
stocks remained at its factories and distribution centres.

Nestle had moved the Bombay High Court challenging FSSAI's order. The court didn't stay
the regulator's order but has issued a notice to FSSAI and called for a hearing on June 30.
Nestle said state governments had not shared formal test reports done on Maggi noodles with
the company.

Maggi crisis: Around 1,500 workers impacted in India

MOGA: Around 1,500 workers involved in manufacturing of Maggi in India have been
'impacted' by the stoppage of production after ban of the instant noodles brand.
Besides, suppliers have also been hit by the Maggi ban and Nestle IndiaBSE 0.64 %'s largest
supplier of spices, Moga-based Paras Spices Ltd, has already ended services of "some
workers" out of the 200 temporary employees it has.
Besides, suppliers have also been hit by the Maggi ban and Nestle IndiaBSE 0.50 %'s largest
supplier of spices, Moga-based Paras Spices Ltd, has already ended services of "some
workers" out of the 200 temporary employees it has.
NestleBSE 0.50 % India hasn't fired any of its permanent workers yet and is engaging them
in different activities but it hasn't taken a long-term view on their future in case the ban on
Maggi prolongs.
"We have 115 workers who have been working on the Maggi line here at the Moga plant.
After the stoppage of Maggi production, we have redeployed some of them to other units,
while we are engaging others in training activities and team building exercise," Nestle India
Factory Manager (Moga) Satish Srinivasan said.
He said none of the permanent workers involved in manufacturing of Maggi at the Moga
plant have been retrenched.
According to a senior company official, Nestle India has about 1,500 permanent workers who
were directly involved in Maggi production across five plants in India.
"They have also been redeployed, engaged in other activities and are in a way impacted," the
official said, however, adding that there has been no job cuts.
On the future of these workers, the official said the company hasn't taken a long-term view as
it is "engaging with authorities to resume Maggi production at the earliest".
Besides Nestle India, the Maggi ban has also affected its suppliers.
Paras Spices Ltd is already looking for new customers after ban on Maggi.
"We have about 200 temporary workers, while some of them have been asked not to come,
some have been asked to report only twice or thrice a week.
Paras Spices Director Paras Budhiraja said.

He said the company, which has an annual turnover of Rs 115 crore, was supplying about 45
per cent of its production to Nestle India.
"We were supplying around 200 tonnes of spices per month to Nestle. That has been affected.
Now, we are trying to find new customers and in future we would try to reduce large
dependence on a single client," Budhiraja said.
Currently, Nestle India is in the process of recalling and destroying Maggi noodles.
Yesterday, it had stated that the company was in the process of destroying Maggi worth Rs
320 crore. It is undertaking the destruction process at five locations in India, including one in
Haryana.
The company expects to complete the process of recall and destruction in 40-45 days.
Central food safety regulator FSSAI had banned Maggi earlier this month, saying that the
instant noodles was unsafe and hazardous for human consumption after finding lead in
excessive levels and presence of taste enhancer monosodium glutamate.
Read more at:
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