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Jul, 07 2015

Nestle pays Rs 20 cr to Ambuja Cements to crash Maggi

According to a Nestle Spokesperson, \"Gujarat Ambuja Cements is helping us to destroy the Maggi noodles being withdrawn by us from the market.\"

Nestle India, which reported of destroying magi noodles over safety issues has paid Rs 20 crore to Ambuja Cements for crashing the noodle packets.

Ambuja Cements, formerly 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.

According to a Nestle Spokesperson, "Gujarat Ambuja Cements is helping us to destroy the Maggi noodles being withdrawn by us from the market."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.

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