Nestlé India’s stock slid 2.46% to ₹1,336.90 on Friday, the sharpest move since the company’s last earnings report. The dip followed FSSAI’s announcement that it had filed three adjudication cases against the firm over two infant‑nutrition products.
FSSAI cited promotional claims on NAN Excella Pro Stage 1 – namely “5 HMOs” and “Whey Protein” – and on Lactogen Pro 1, where the product was marketed as having “easy to digest” protein. Those claims, the regulator said, violate Regulation 4 of the Food Safety and Standards Regulations, 2020.
A laboratory test revealed a sample of Nestlé’s follow‑up formula was sub‑standard in biotin content, falling short of the prescribed requirement. The sample was sent for re‑analysis, and the laboratory confirmed non‑conformance.
The infant‑nutrition sector is under increased scrutiny as regulators tighten standards. Investors are evaluating whether the legal action could translate into recalls, reformulation costs or reputational damage, all of which could affect the company’s future earnings.
With no guidance from Nestlé India on the outcome, traders will keep an eye on the company’s next earnings release and any statements from senior management regarding the compliance strategy. The stock’s volatility suggests that market sentiment remains cautious as the regulatory process unfolds.