Ceat slips 5% as fire breaks out in Mumbai plant

Moneycontrol Bureau

Shares of Ceat slipped 5 percent intraday on Monday as major fire broke out in its Bhandup plant in Mumbai. The cause of the fire is not known.

The tyre-manufacture has four manufacturing plants - three in India and one in Sri Lanka. Around 33 percent of the company’s tyres are manufactured in the Bhandup Mumbai, which is its oldest plant.

The company, however, has said though it will lose production for a couple of days, but there is no sale loss due to fire. It also informed that raw material has been insured completely and production will resume in a couple of days. Fortunately, there has been no loss of life at the plant except one minor injury and fire did not move to other parts of the plant. Fire was restricted to raw material storage area of the plant alone, it said.

To minimise sales loss, Ceat will increase production at other plants in Nashik and Halol.

At 15:04 hrs, the stock was quoting at Rs 278.60, down Rs 0.95, or 0.34 percent on the BSE.