Maggi instant noodles
Packets of Maggi instant noodles are seen on display at a grocery store in Ahmedabad, India, June 3, 2015.Reuters

Alarmed by a crisis over its flagship brand Maggi, Nestle has appointed Suresh Narayanan as its India MD in a major reshuffle, replacing Etienne Benet.

However, the appointment is yet to receive an approval and Narayanan will take charge next month once it is done.

"Narayanan will function as a designate. The proposal is subject to necessary approvals," ET Now reported quoting, citing a statement from the company.

Benet, the incumbent Nestle India MD, will move to the company's headquarters in Switzerland.

According to some reports, Nestle has appointed an Indian to head its operations in the country after a gap of 16 years.

Narayanan joined the company in 1999 in India and later worked as head of sales for Nestle's South Asia Region from 2005 to 2008. During this period, Narayanan led many structural and strategic changes in sales and customer management.

Currently, he is the chairman and CEO of Nestle Philippines.

Narayanan's appointment comes at a time when the company suffers from huge losses due to a ban on Maggi noodles by the Indian authorities.

On 5 June, India's food safety regulator, Food Safety & Standards Authority of India (FSSAI), had ordered Nestle India to recall all available stock of Maggi noodles from the market after more-than-permissible levels of lead and monosodium glutamate (MSG) were found to be present in samples of the noodles that were tested across laboratories by various states.

"The way the matter played out was unfair to Nestle. The company wasn't given a chance to prove themselves," said Equinox Labs chief executive Ashwin Bhadri.

Analysts see a 50% decline in volume growth of Nestle India's ready-to-eat food products in 2015 as a result of ban of Maggi noodles, before recovering to 100% next year.

Nestle had filed a case in the Bombay High Court challenging the ban imposed by FSSAI on Maggi.

Recently, the court has allowed the company to export Maggi noodles, currently banned in several states in the country.

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