Nestle shares reel under regulatory pressure, down by 3 per cent

Mumbai: Shares of Nestle India slippedalmost 3 per cent today 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 per cent to Rs  5,791 on BSE.  On NSE, it lost 2.77 per cent 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.