The shares of Sigachi Industries extended significant losses to the second consecutive session after the company announced that it is temporarily shutting operations at its plant in Telangana where a massive blast killed at least 34 people and injured many.
The shares of the company were trading at Rs 45.42 apiece in the morning. The stock has now fallen nearly 18 percent in just two days following the incident.
One of the chemical reactors at the pharma factory located in Telangana's Pashamylaram reportedly exploded during operations on June 30, injuring several employees. In an exchange filing, the company said that the fire which broke out resulted in loss of lives and several injuries. "While the exact number of injuries is currently being confirmed, the well-being of our personnel remains our foremost priority. Sigachi deeply mourns the loss of life and extends heartfelt condolences to the families of the deceased," the firm said.
Police officials later confirmed that the death toll has crossed 30. Reports now claim that the number has crossed 34.
Operations at affected plant paused for 90 days
Sigachi Industries said that the incident has damaged its ancillary equipment and civil structures within the facility. "While the core manufacturing infrastructure has suffered damage, the operations at the plant will be temporarily paused for an estimated period of 90 days to facilitate replacement and restoration of affected equipment and structures," the company said.
Sigachi Industries said the affected plant is one of its three manufacturing facilities for the production of Microcrystalline Cellulose (MCC). "This unit contributes approximately 6,000 MTPA out of our total operating capacity of 21,700 MTPA, with the balance production coming from our other two facilities located in Gujarat," it said. Its other two plants meanwhile continue to operate normally.
Affected plant fully insured
The company said that the affected facility is fully insured, and it is currently initiating necessary claims. "We remain committed to resuming operations at the earliest, with enhanced focus on safety, risk mitigation, and operational excellence," it added.
As per reports, Chief Minister A Revanth Reddy would visit the accident site. "Several bodies have been found under the debris while removing it. "As many as 31 bodies have been extricated from the debris, while three died in the hospital while undergoing treatment. The last leg of the rescue operation is still going on," District Superintendent of Police Paritosh Pankaj was quoted by PTI as saying.
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