Nestle India shares fall as Maggi worth Rs 320 crore being destroyed

Nestle India shares plunged over 2 per cent on Tuesday after the announcement made by the company that they are in the process of withdrawing Maggi noodles stock from the market and destroying it.

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

In a filing to the Bombay Stock Exchange (BSE), the company said: "There will be additional cost to take into account, for example bringing stock from the market, transporting the stock to the destruction points, destruction cost etc. The final figure will have to be confirmed later."

The controversy over Nestle India erupted when the Lucknow Food Safety and Drug Administration (FSDA) found excess lead and MSG in Maggi noodles.

The share price of Nestle India closed at Rs 5782.85, down 2.79 per cent against its previous close.

Nestle India is a subsidiary of Nestle SA of Switzerland. Nestle is the world's leading nutrition, health and wellness company.