Maggi Ban: Not long ago Nestle India was one of the leading packed food companies in India. Its two minute instant noodles were everywhere, but that was the past. Everything is changed now, the noodles are banned and everything else of Nestle’s is under probe.
The ban resulted in stock stagnation for Nestle. The problem now for the company is that it needs to employ or seek help of another countries to destroy the stock.
In order to facilitate the procedure, Nestle India has paid Rs. 20 crore to Ambuja Cements for destroying Maggi instant noodles, which were found to be harmful for human consumption by the food regulators in the country. The recalled packets of Maggi noodles will be burned at the cement plant in Chandrapur in Maharashtra.
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.
When contacted, a Nestle India spokesperson told PTI: “Gujarat Ambuja Cements is helping us destroy the Maggi noodles being withdrawn by us from the market. 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.”
