 "India is largest market for Maggi noodles, 6 billion servings sold in FY24")
India has emerged as the largest market for Nestle's Maggi, with six billion servings of the popular instant noodles sold in the financial year 2023-24 (FY24), the Swiss multinational company's local unit said in an annual report on Monday.
Nestle India also declared the country as one of the fastest growing markets worldwide for the company with a high double digit growth rate.
It said that its prepared dishes and cooking aids business recorded a strong growth in India due to a number of factors including a balance of product mix, pricing and volume growth in Maggi noodles and Maggi Masala-ae-Magic.
Nestle India also noted that it sold 4.2 billion fingers of the popular chocolate KitKat, making India its second-largest market.
Controversy surrounding Maggi noodles in India
Notably, Maggi has been the subject of repeated debates in India over its potential health risks.
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In June 2015, the Maggi noodles faced a five month ban by the Food Safety and Standards Authority of India (FSSAI) over the allegations that the instant noodles contain lead way beyond permissible amounts. Lead is a toxic chemical element with serious health risks for humans and animals.
When Maggi was investigated in 2015, it was revealed that it contained lead 17.2 parts per million (ppm), which basically meant at least 1,000 times more than the authorised limit of 2.5 ppm.
The ban devastated Maggi's 80 per cent share of the Indian noodles market, plummeting to zero within a month. Nearly a decade later, it still struggles to reclaim lost ground due to an increased competition from new players.
Having introduced over 140 products in India over the last eight years, the company plans to invest Rs 7,500 crore between 2020 and 2025 with an eye to bolster operations.
Nestle India reported sales of Rs 24,275 crore for the 15 months ending March 31, 2024.