Nestle India is to destroy close to 27,420 tons of Maggi noodles valued at around $50m, following a ban imposed by Indian food safety authorities.
Last month, the Food Safety and Standards Authority of India (FSSAI) discovered traces of lead in Maggi samples that were seven-times the safe level for consumption.
Despite contending that Maggi is safe, the recent developments and unfounded concerns about the product has forced Nestle to recall and destroy the product.
As stated on Nestle India website, the value of recalled noodles include stocks withdrawn from the market and stocks stored in factories and with distributors.
"There will be additional costs to take into account, for example bringing stock from the market, transporting the stock to the destruction points, destruction cost etc. The final figure will have to be confirmed at a later date."
Around 1,500 employees involved in the production of Maggi have been impacted by the ban, with few transferred to manufacture other items such as dairy products, ketchup and infant nutrition.
Reports say the company is expected to lose over $200m in brand value, which was $2.4bn prior to the food safety scare.
Vouching for the safety of its products, Nestle has moved the Bombay High Court challenging FSSAI's order, saying the state governments had not shared formal test reports with the company. The court has issued a notice to FSSAI and called for a hearing on June 30, reports The Economic Times.
