KEI Industries Ltd., a leading wire and cable manufacturer in India, announced on Wednesday that a labor strike has partially halted production at its Rakholi and Chinchpada plants in the Union Territory of Dadra & Nagar Haveli and Daman and Diu.
The company estimates a daily production loss of ₹8 crore due to the strike. However, all assets are insured, according to the exchange filing.
The strike stems from demands for higher wages and other issues, which KEI Industries management describes as "completely unwarranted." The company is actively negotiating with labor contractors and workers to resolve the situation.
The Chinchpada facility, which saw a capital expenditure of ₹84 crore in the 2024 financial year, is particularly affected. KEI Industries had planned an additional ₹65 crore investment to increase capacity for wire and cable production.
For the March quarter, KEI Industries reported domestic institutional wire and cable sales of ₹676 crore, nearly flat compared to ₹692 crore in the same period last year. The impact of the strike on these figures is yet unclear.
The disruption at Rakholi and Chinchpada highlights the ongoing labor issues that could potentially affect KEI Industries' future production and financial performance.