Nestle shares continue to decline; mcap erodes by Rs 10,610.55 cr in two days

New Delhi: Shares of Nestle India continued to decline on Friday, ending the day over 1 per cent lower, amid reports that the global FMCG major sold infant milk products with more sugar content in less developed countries.

The stock declined 3.53 per cent to Rs 2,375.75 during the day on the BSE. It later ended at Rs 2,437.10 a share, down 1.04 per cent.

On the NSE, shares of the company dipped 2.13 per cent to Rs 2,410 during the day. The stock ended at Rs 2,430 apiece, reflecting a decline of 1.32 per cent.

On Thursday, shares of Nestle India had declined over 3 per cent.

In two days, the company's market capitalisation (mcap) got eroded by Rs 10,610.55 crore to Rs 2,34,974.74 crore.

Nestle India on Thursday said it has reduced added sugar on baby food products in India by up to 30 per cent, depending on variants, over the past five years, amid reports that the global FMCG major sold products with more sugar content in less developed countries.

According to findings by Swiss NGO, Public Eye and International Baby Food Action Network (IBFAN), Nestle sold baby products with higher sugar content in less developed South Asian countries, including India, Africa and Latin American nations as compared to markets in Europe.

When reached out for comments, a company spokesperson said, "Reduction of added sugars is a priority for Nestle India. Over the past 5 years, we have already reduced added sugars by up to 30 per cent, depending on the variant." The spokesperson further said, "We regularly review our portfolio and continue to innovate and reformulate our products to further reduce the level of added sugars, without compromising on nutrition, quality, safety, and taste." Nestle India asserted that its "infant cereal products are manufactured to ensure the appropriate delivery of nutritional requirements such as protein, carbohydrates, vitamins, minerals, iron etc. for early childhood".

"We never compromise and will never compromise on the nutritional quality of our products. We constantly leverage our extensive global research and development network to enhance the nutritional profile of our products," the spokesperson said.