Shares of Nestle India came under pressure on Friday, September 18, falling around 3% after reports said the Food Safety and Standards Authority of India (FSSAI) had initiated legal action against the company over multiple non-compliances under the Food Safety and Standards Act.
The regulator has filed three adjudication cases against Nestle India in connection with three products.
The products involved are Infant Nutrition, NAN Excella and Lactogen. The regulatory action follows findings from laboratory testing of a follow-up formula manufactured by Nestle India, with one sample found to be below the prescribed Biotin requirement. A repeat analysis also found that the sample did not conform to the required Biotin level.
FSSAI said the action forms part of its food-safety enforcement efforts.
Nestle Stock performance
Nestle India shares declined around 3% during Friday’s trading session. The stock fell as much as 2.85% to touch a low of ₹1,332.80 per share on the BSE.
The FMCG stock had reached a 52-week high of ₹1,553 in August 2026, while its 52-week low stood at ₹1,145.10, recorded in October 2025.
Nestle India has lost 3% over the past one week and 8% in one month. Over four months, the stock has declined 4%. However, it has gained 11.5% in six months, risen 11% in one year and delivered a 33% return over five years.
What FSSAI said?
FSSAI said it had examined the infant nutrition products mentioned in the case, along with their promotional material available on e-commerce platforms.
“In NAN Excella Pro Stage 1, claims relating to “5 HMOs” and “Whey Protein” were observed, while in Lactogen Pro 1, a claim relating to “Whey Protein” being easy to digest was observed. Accordingly, clarifications were sought from M/s Nestlé India Limited regarding the above claims. Both products were found to be in contravention of Regulation 4(2) of the FSS (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional claims/material intended to increase the saleability of infant foods, and Section 3 of the IMS Act, 1992, which prohibits their advertisement and promotion,” said FSSAI in a statement.
Separately, the regulator said a sample of a follow-up formula manufactured by Nestle India was found to be sub-standard for Biotin content during laboratory testing. The sample was subsequently sent for re-analysis, following which the referral laboratory also found it to be non-conforming with the Biotin requirement prescribed under the 2020 regulations.
Based on these findings, FSSAI said it had filed three separate adjudication cases against Nestle India in relation to the three products.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
