Nestle shells out Rs 20cr for destroying Maggi instant noodles packets
Nestle India has paid Rs 20 crore to Ambuja Cements for destroying Maggi noodles, which have been found to be harmful for human consumption by the food regulators in India.india Updated: Jul 07, 2015 15:07 IST
Nestle India has paid Rs 20 crore to Ambuja Cements for destroying Maggi noodles, which have been found to be harmful for human consumption by the food regulators in India.
Ambuja Cements, earlier known as Gujarat Ambuja Cements, is believed to have been paid the amount for burning the recalled packets of Maggi noodles at its cement plant in Chandrapur in Maharashtra.
When contacted, a Nestle India spokesperson told PTI: "Gujarat Ambuja Cements is... helping us to destroy the Maggi noodles being withdrawn by us from the market."
While the spokesperson did not confirm the cost involved in burning Maggi at Ambuja Cements plant, he said: "In addition to the value of stocks being destroyed there will be additional costs to take into account, for example bringing back stock from the market, transporting the stock to the destruction points and destruction cost etc."
Nestle India said that these costs and other unforeseen costs associated with the withdrawal will be dealt with in line with the applicable accounting standards at the time of announcing the financial results on the due dates.
Last month, Nestle India said it is in the process of destroying Maggi instant noodles worth Rs 320 crore after it was banned by the central food safety regulator FSSAI due to presence of lead and taste enhancer monosodium glutamate (MSG) beyond permissible limits.
On June 5, FSSAI banned Maggi directing Nestle to immediately withdraw and recall all nine variants of Maggi instant noodles from market. Nestle India has also recalled the product from the market.
Nestle India has challenged the ban order in the Bombay High Court.