Nestle India to set up a new plant in Gujarat
12 August 2019
Nestle will invest Rs 700 crore initially over the next two years to set up a new plant for Maggi noodles. The construction of the plant will commence soon in Gujarat. This will be Nestle’s ninth factory in India.
This makes it the company’s first such investment in dedicating a new manufacturing facility for production of the instant noodle brand, after a nationwide ban in 2015 hit sales. India’s food regulator banned the sale of Maggi noodles for almost six months over allegations that the packaged food product contained more than permissible levels of lead and MSG. This forced Nestle to withdraw stocks of Maggi across India. However, the brand was re-launched later that year.
At present, Maggi instant noodles are manufactured at three plants in India with lines dedicated to the instant noodle brand. Two more plants partially produce Maggi. The new plant in Gujarat will further help boost the brand's sales.
Last year, the company announced that Maggi had attained over 60% market share since its withdrawal in 2015. Before the crisis, Maggi commanded a 75% share of the instant noodles market. It, however, touched its pre-crisis level mark in terms of value last year.
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