FSSAI Initiates Legal Action Against Nestle India Over Infant Nutrition Products

The Food Safety and Standards Authority of India (FSSAI) has initiated legal action against Nestle India, citing non-compliance with food safety and labelling regulations across three of its infant nutrition products. The regulator's move follows laboratory testing and an examination of promotional materials on e-commerce platforms, marking a significant escalation in the authority's ongoing scrutiny of packaged food operators.

The FSSAI has filed three separate adjudication cases against the company. Laboratory analysis of a follow-up formula sample revealed it was substandard regarding its biotin content, a finding that was confirmed upon re-analysis by a referral laboratory. Simultaneously, the regulator flagged promotional claims made on two other products, NAN Excella Pro Stage 1 and Lactogen Pro 1. Specifically, the FSSAI raised concerns over claims regarding 5 HMOs, whey protein content, and the digestibility of whey protein, which it stated contravene the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020.

These regulations restrict promotional material intended to increase the saleability of infant foods. Furthermore, the regulator cited the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992, which prohibits the advertisement and promotion of such products. The FSSAI has sought formal clarifications from Nestle India regarding these marketing claims.

Following the announcement, shares of Nestle India declined by approximately 2.75% during intraday trading on the National Stock Exchange, hitting a low of Rs 1,332.80. The stock has faced downward pressure, trading significantly below its 52-week high of Rs 1,553 recorded in early August. This development occurs against a backdrop of heightened regulatory activity in India, where authorities have recently intensified crackdowns on food adulteration and proposed stricter labelling norms for packaged goods.

Nestle India, a subsidiary of the Swiss-based Nestle S.A., operates nine manufacturing facilities across the country. The company has previously navigated high-profile regulatory disputes, most notably in 2015 when its Maggi noodles were subject to a nationwide ban and recall over alleged lead levels and labelling lapses. While the company has not yet provided a formal response to the latest legal actions, the current adjudication cases represent a new challenge for the firm's infant nutrition portfolio in the Indian market.