At the affected facility, the company manufactured microcrystalline cellulose.
Mumbai, June 30: Drug-maker Sigachi Industries on Monday said that its pharma factory at Pashamylaram Phase-1 in Medak district would be shut for 90 days following extensive damage and loss of human life in the fire accident that broke out at the premises, the company informed stock exchanges.
At the affected facility, the company manufactured microcrystalline cellulose, a refined fibrous plant material in powder form used in pharmaceuticals, cosmetics, and food production. Sigachi Industries is one of the largest manufacturers of microcrystalline cellulose worldwide.
Following the fire accident, the company’s stock price fell 15 per cent intraday to `47 per share and closed 11.58 per cent down at `48.79 on BSE.
“In addition to the human impact, the incident also caused damage to certain 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 informed the stock exchanges.
On the impact of the fire accident on its production capacity, the company said, “We operate three manufacturing facilities for microcrystalline cellulose (MCC), one of which is the Hyderabad unit where the incident occurred. 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. The other two plants continue to operate normally, and efforts are being made to optimise production from those units during the interim period."
"The Hyderabad facility is fully insured, and we are in the process of initiating the necessary claims as per standard procedures," the company said.
