Headlines
Nestle values Maggi stocks at Rs.320 crore
New Delhi, June 15
Nestle India on Monday said
stocks of Maggi noodles worth Rs.210 crore were being withdrawn from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 stocks remained at its factories and distribution
centres.
"These are broad estimates because it is impossible to
calculate the final figure while the withdrawal is taking place," the
company said in a filing with stock exchanges.
"There will be
additional costs to take into account, for example bringing back stock
from the market, transporting the stock to destruction points,
destruction costs, etc. The final figure will be confirmed at a later
date," it said.
"The above, and other unforeseen costs associated
with this withdrawal, will be dealt with in line with the applicable
accounting standards at the time of announcing the financial results on
the due dates."
The food safety regulator had ordered Nestle to
withdraw Maggi noodles after some samples were reportedly found to
contain higher-than-permissible levels of lead -- a finding that was
rejected by the company, saying its own independent tests suggested
otherwise.
Nestle since moved the Bombay High Court, challenging
the order. The court has now issued notice to the Food Safety and
Standards Authority of India (FSSAI), the regulator, and other
respondents and posted the matter for hearing on June 30.
Among
other matters, the Swiss multinational firm has urged the court to quash
the June 5 order asking the company to withdraw and recall all its nine
Maggi variants and the oats noodles from the Indian market.