
Shares of Sigachi Industries Ltd extended their sharp decline on Tuesday after a reactor explosion at its Pasamailaram Phase 1 facility in Medak district, Sangareddy, Telangana, led to casualties and injuries.
The stock dropped 7.03 per cent to a day low of Rs 45.36, marking a total fall of 17.80 per cent over the past two trading sessions.
Sigachi issued a statement confirming that the recent incident at its Hyderabad facility tragically resulted in the loss of life and possible injuries. "While the exact number of injuries is still being verified, the well-being of our personnel remains our highest priority. We deeply mourn the loss and extend our heartfelt condolences to the families of the deceased. We are providing all necessary support to those affected," the company said.
The company further noted that, beyond the human toll, the explosion caused damage to certain ancillary equipment and civil structures at the site. "A detailed on-ground assessment is currently underway, and we are working closely with the relevant authorities to ensure adherence to all safety and support protocols. While the core manufacturing infrastructure has sustained damage, plant operations will remain temporarily suspended for approximately 90 days to allow for replacement and restoration of the impacted areas," it added.
Addressing the impact on production, Sigachi explained: "We operate three manufacturing units for Microcrystalline Cellulose (MCC), one of which is the Hyderabad plant where the incident occurred. This facility accounts for around 6,000 MTPA of our total production capacity of 21,700 MTPA. Our other two plants in Gujarat remain fully operational and steps are being taken to maximize output from these facilities during the downtime."
The company also confirmed that the Hyderabad plant is fully insured. "We are in the process of initiating insurance claims as per standard protocol. Our focus remains on resuming operations as quickly as possible, with renewed emphasis on safety, risk mitigation and operational excellence," it said.