Ever since the Maggi ban has started, there is a massive buzz all over the country. Nobody was happy, Maggi was the only food loved by all age group. It was a part of our everyday lives and all of a sudden we find no packets in our kitchen. Well, this makes us sad too! 🙁
The Food Safety Regulator and Standards Authority of India (FSSAI) had ordered Nestle to withdraw Maggi noodles after some samples were found to contain higher-than-permissible levels of lead and Monosodium Glutamate (MSG).
What is the current update on Maggi?
More than 27,000 tonnes of noodles, recalled from 3.5 million retail outlets, with 10,000 trucks transporting them for incineration. Those are the kinds of mind-boggling figures Nestle India is looking at. 10 days from the launch of its drive to recall and destroy Maggi noodles—a task that needs the help of an army of workers.
It will take at least 40 days to destroy Nestle’s available stock of the ‘two-minute noodles’.
Since May 28, Nestle shares are down, nearly 18 percent from Rs 7,038.65 to Rs 5782.85 (as on 16th June 2015). The selloff has wiped out nearly Rs 10,000 crore from Nestle’s market capitalization.
What the company said?
“We are in the process of withdrawing Maggi noodles stock from the market and destroying it. The estimates ‘Sales Value’ of the stock in the market, including those with our trade partners is around Rs.210 crore. In addition, there were Maggi noodles and related materials in our factories and distribution centres. When the withdrawal was announced, the estimated value of these is around Rs.110 crore.” the company said.
“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 within line with the applicable accounting standards at the time of announcing the financial results on the due dates.”
“We don’t have enough space available to keep all. We have already taken 12 storage spaces additionally to keep the recalled noodles” said Ashish Pande, head of supply chain operations (India), Nestle India.
Nestle since moved the Bombay High Court, challenging the order. The court has now issued a 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.
We just want our #HealthyMaggi back without those extra level of Lead and MSG! 🙁