Nestle India, which is under scanner since it was first found that the high lead and MSG content is found in its instant noodle ‘Maggi’ will have to suffer from Rs 320 crore brand hit from the withdrawal of Maggi noodles in India.
According to the official statement issued by Nestle India today, “The estimated “Sales Value” of the stock in the market, including those with our trade partners, is around INR 210 Crores (2.1 billion). In addition, there were MAGGI Noodles and related materials in our factories and distribution centres when the withdrawal was announced and the estimated value of these is around INR 110 Crores (1.1 billion).”
The instant noodle maker has first ordered the retailers and distributors to stop the sale of Maggi noodles on 5th of June, withdrawing 2-minutes noodle from market much before the food safety authority asked it to ban the product in the country.
“These are broad 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, for example bringing stock from the market, transporting the stock to the destruction points, destruction cost etc,” added Nestle India in the statement.
The noodle maker is has already announced we are in the process of withdrawing MAGGI Noodles stock from the market and destroying it.
Nestle also added that they will deal with the applicable accounting standards at the time of announcing the financial results on the due dates.