On Monday, Nokia, the world?s largest mobile phone maker initiated a precautionary charger exchange programme in which consumers owning certain Nokia-branded chargers manufactured by China?s BYD Co Ltd were recommended to exchange these chargers for free replacements. Nokia will be replacing 14 million such chargers that expose consumers to an electric shock hazard.
A product recall is a very real possibility that can happen to most quality-conscious organisations as well as to the careless. The long global recall list mainly includes companies from the US, Europe and Japan covering almost all the major business segments. The incidents range from the Tylenol poisonings in the 1980s to the Firestone tyre recalls in 2000 to the latest Maclaren?s recall of one million pushchairs.
Products have been recalled in India, too. However, such cases have been fewer. The majority of cases relate to MNCs operating in India and their recalls were part of a global programme. The Indian incidents range from the recall of Bajaj/Vespa scooters in the 1970s to the recent recall cases of soft drinks with pesticides content and Cadbury chocolates with worms being reported in them.
Indian manufacturers are becoming increasingly aware of the liabilities they potentially face, especially when exporting to litigious destinations like Australia, EU and the US. Recalls of food products are comparatively rare in India, but with the development of branded food products, they have become a common tool. In 2004, the EU had issued notices to 61 Indian companies to recall their food products on the ground that they were contaminated. Tough export regulations have led to manufacturers keeping records of their raw materials. Similar regulations should be implemented on the domestic front, too.
India has also initiated a law to trace the origins of all products, which would help companies to improve their brand value, besides making products adhere to higher safety norms and lower carbon footprint. However, it must be ensured that these details travel along with the product throughout the chain.
jaya.jumrani@expressindia.com