Shares of Britannia Industries, Westlife Development and Jubilant FoodWorks fell up to 12 percent on Tuesday amid concerns over a CSE report that showed bread and bakery product samples of top Delhi brands may contain residues of carcinogenic chemical additives.
While Domino’s Pizza is operated by Jubilant FoodWorks, whose stock tumbled 12.35 percent, Westlife Development which runs McDonald’s restaurants, plunged 9 percent on the Bombay Stock Exchange (BSE). Britannia’s stock fell 2.6 percent.
The study by the Centre for Science and Environment (CSE) indicated that a shocking 84 percent of bread and bakery samples collected from all over the city contains residues of chemical food additives like potassium bromate, potassium iodate or both. The report prompted the Union Health Minister JP Nadda to order a probe into the matter.
Global studies have shown that bromate is a possible carcinogen (cancer-causing substance), which eventually led to it getting banned in several countries. Potassium iodate, banned in many countries, can potentially affect thyroid function.
McDonalds denied all allegations, saying that the company followed “stringent quality processes at every stage.” KFC too denied the allegations, claiming they do not use flour treated with either potassium bromate or potassium iodate.
Britannia, Slice of Italy, Pizza Hut and Subway also denied the use of these additives.
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