Mumbai: Nestle India shares slipped almost 3% on Tuesday as the company moved to destroy its Maggi noodles stock worth Rs 320 crore after the snack was banned by food safety regulator FSSAI due to presence of lead and taste enhancer monosodium glutamate beyond permissible limits.
The stock ended the day 2.79% lower at Rs 5,782.85 on the BSE. During the day, it had lost 3.33% to Rs 5,750. On the NSE, shares of Nestle went down by 2.86% to Rs 5,784.65.
The stock has been on a downfall since three consecutive trading sessions, falling over 6 per cent. During this period, the company's market valuation plunged Rs 3,732.24 crore to Rs 55,755.76 crore.
The company said it is in process of withdrawing the stock of Maggi Noodles from markets, factories and distribution and destroying it.
"The estimated sales value of the stock in the market, including those with our trade partners is around Rs 210 crore. In addition, there was Maggi Noodles and related materials in our factories and distribution centres when the withdrawal was announced and the estimated value of these is around Rs 110 crore," Nestle India informed the BSE.
It added however that it was only a broad estimate "as it is impossible to calculate the final figure while the withdrawal is taking place".
On June 5, the Food Safety and Standards Authority of India (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.
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