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Nestle shares reel under regulatory pressure, down 3%

 The Hawk |  2015-06-16 07:29:14.0  0  Comments

Mumbai: Shares of Nestle India slipped almost 3 percent Tuesday as the company starts destroying Maggi noodles worth Rs 320 crore after it was banned by food safety regulator FSSAI due to presence of lead and taste enhancer monosodium glutamate beyond permissible limits. The stock of Nestle India dropped 2.65 percent to Rs 5,791 on BSE. On NSE, it lost 2.77 percent to Rs 5,790. The company yesterday said it is in the process of withdrawing the stock from markets, factories and distribution channels 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 were 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 had told BSE. It, however, added 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 noodles directing Nestle to immediately withdraw and recall all nine variants of the snack from the market. PTI

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