Hyderabad chemical factory blast: Sigachi says core infrastructure damaged, operations at plant paused

The Hindu

5 hours ago

Drugmaker Sigachi Industries said Monday's (June 30, 2025) fire incident at its plant in Hyderabad has damaged the core manufacturing infrastructure and operations at the facility are being paused temporarily.
The operations are being paused for an estimated 90 days to facilitate replacement and restoration of affected equipment and structures, it said in a filing to the stock exchange without mentioning the number of people who died and injured.
In addition to the human impact, the incident also caused damage to certain ancillary equipment and civil structures within the facility located in IDA Pashamylaram, Phase -1 in neighbouring Sanga Reddy district. A thorough on-ground assessment of the situation is in progress and 'we are coordinating with relevant authorities to ensure all safety and support protocols are followed,' the company said
Sigachi said it operate three manufacturing facilities for microcrystalline cellulose (MCC). The Hyderabad unit where the incident occurred was one of them and contributed approximately 6,000 MTPA out of our total operating capacity of 21,700 MTPA. The balance production comes from the company's other two facilities in Gujarat, which continue to operate normally. Efforts are being made to optimise production from those units during the interim period, it said.
The company's shares took a beating in the wake of the incident, slumping 11.58% compared to the previous close to end the day ₹48.79 apiece on the BSE.
The Hyderabad facility is 'fully insured and we are in the process of initiating the necessary claims as per standard procedures. We remain committed to resuming operations at the earliest, with enhanced focus on safety, risk mitigation, and operational excellence,' Sigachi said.
'The incident has unfortunately resulted in loss of human life and there may have been individuals who sustained 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. We are extending all possible support to those affected,' it said.