Shares of Nestlé India were trading 3% lower on 18 September after the Food Safety and Standards Authority of India (FSSAI) initiated legal action against the company over non-compliances involving its infant nutrition products. 

FSSAI has filed three separate adjudication cases against Nestlé India in connection with three infant nutrition products. The action follows the regulator’s examination of products and promotional material available on e-commerce platforms.

Two of the cases relate to NAN Excella Pro Stage 1 and Lactogen Pro 1. According to FSSAI, promotional material for NAN Excella Pro Stage 1 carried claims related to “5 HMOs” and “Whey Protein”. In the case of Lactogen Pro 1, the promotional material included a claim that its whey protein was easy to digest.

FSSAI said these claims were found to be in violation of Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020. The regulator also cited Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods Act, 1992, which restricts the advertising and promotion of infant food products.

Separately, a laboratory test of a follow-up formula manufactured by Nestlé India found the product to be below the prescribed standard for biotin. The sample was sent for re-analysis, and the Referral Laboratory also found that it did not meet the required biotin level under the 2020 infant nutrition regulations.

The three adjudication proceedings will determine the consequences of the alleged non-compliances. The latest action adds regulatory scrutiny to Nestlé India’s infant nutrition portfolio, although the proceedings themselves do not represent a final adjudication outcome.

At 1:20 pm, the shares of Nestle India were trading 2.12% lower at Rs 1,341.60 on NSE. 

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