Nestle values Maggi stocks at Rs.320 crore

Nestle India on Monday said stocks of Maggi noodles worth Rs.210 crore were being withdrawn from the market and destroyed even as another Rs.110 crore worth of finished and related material stocks remained at its factories and distribution centres.

"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 with in line with the applicable accounting standards at the time of announcing the financial results on the due dates."

The food safety regulator had ordered Nestle to withdraw Maggi noodles after some samples were reportedly found to contain higher-than-permissible levels of lead -- a finding that was rejected by the company, saying its own independent tests suggested otherwise.

Nestle since moved the Bombay High Court, challenging the order. The court has now issued 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.

Among other matters, the Swiss multinational firm has urged the court to quash the June 5 order asking the company to withdraw and recall all its nine Maggi variants and the oats noodles from the Indian market.