Nestle India sees more than Rs 32o Cr hit from Maggi ban
Nestlé India said it would destroy Rs 320 crore worth of Maggi instant noodles, which the Food Safety and Standards Authority of India banned recently after it found the product contained lead and monosodium glutamate beyond permissible limits.
Nestle has been battling its worst-ever branding crisis in India since a regulator in the northern state of Uttar Pradesh found monosodium glutamate (MSG) and excess lead in a sample of its hugely popular noodles.
In a filing to stock exchanges on Monday, Nestlé India said Maggi noodles worth Rs 210 crore were being withdrawn from the market and destroyed even as another Rs 110 crore worth of finished and related material stock remained at its factories and distribution centres.
"There will be additional costs to take into account, for example bringing stock from the market, transporting stock to destruction points," Nestle said in a statement.
About 27,420 tonnes of Maggi noodles, under recall process, will end up in furnaces of cement plants across the country -- a mode that Nestlé India has chosen to destroy the stock.
Till last Friday, Nestlé India has managed to recall 11,500 tonnes of the product and destroy 169 tonnes by putting them in such furnaces.
“The actual recall process of Maggi noodles from the market is an immensely complex process and a mammoth activity, the largest in the history of Nestle,” said Luca Fichera, executive vice-president (supply chain) at Nestlé.
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Nestle India sees more than Rs 3.2 billion hit from Maggi ban - Rediff.com Business
How Nestle plans to destroy Rs 320-cr Maggi noodles - Rediff.com Business