Maggi worth Rs.320 crore being destroyed

Tue 16 Jun 2015, 13:54:23
Mumbai: Nestle India is in the process of destroying Maggi noodles worth Rs 320 crore after it was banned by the central food safety regulator Food Safety and Standards Authority of India (FSSAI) due to presence of lead and taste enhancer monosodium glutamate (MSG) beyond permissible limits.

The company said it is in the process of withdrawing the stock of Maggi noodles from markets, factories and distribution and destroying it. The ban on Maggi noodles is likely to wipe off the entire profits Nestle India reported for the quarter ended March 31, 2015.

“The estimated sales value of the stock in the market, including those with our trade partners, is around Rs 210 crore. In addition, there were Maggi noodles and related materials in our factories and distribution centres when the withdrawal was announced. The estimated value of these is around Rs 110

crore,” said Nestle India. 

These are broad-based estimates because it is impossible to calculate the final figure while the withdrawal is taking place. There will be additional costs to take into account, and so, the final figure would be confirmed at a later date, said the company.

Nestle India had, for its first quarter, which ended on March 31, reported a net profit of Rs 320.20 crore as against Rs 259.16 crore in the same quarter previous fiscal. 

Total income from operations for the company during the quarter stood at Rs 2,516.48 crore as against Rs 2,321.51 crore a year ago. 

According to Nestle India, the additional costs to take into account would include bringing the stock back from the market, transporting it to the destruction points and the destruction costs.

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