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Nestle's Maggi Comeback: How a Crisis Fueled Innovation
30 Jul
Summary
- Nestle India's Maggi noodles banned in 2015, forcing product withdrawal
- Suresh Narayanan led Nestle's turnaround, relaunching Maggi in 5 months
- Nestle India now 2.5 times larger, profits 5 times higher than 2015
Around a decade ago, Nestle India faced an existential crisis when its popular Maggi noodles were banned by the food regulator in June 2015 for allegedly containing lead beyond permissible limits. Suresh Narayanan, who was then serving as Chairman and CEO of Nestlé Philippines, was immediately brought in by the Swiss food multinational to handle the crisis.
Narayanan, who is now retiring as Nestle India's Chairman and Managing Director after leading the company for a decade, says crises are a "very good time to make changes" and that Nestle used the opportunity to jettison things that were not adding value and focus on what served the purpose. The company relaunched Maggi just five months after the ban was lifted, and has since grown significantly, with its turnover now 2.5 times and profits 5 times what they were in 2015.
Nestle India has also quickened the pace of innovations, introducing around 150-160 new products. The company has regained its dominant position in the fast-growing instant noodles segment, where it now holds over 60% market share. Narayanan's leadership has transformed Nestle India into a stronger, more vibrant and connected company.
