Closure of operations of Diphenol Plant of the Company.
CAMLINFINE · price
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Camlin Fine Sciences has permanently closed its Diphenol Plant at Dahej SEZ due to severe constraints in raw material availability and pricing caused by geopolitical issues. The plant, which contributed 5.06% of turnover (Rs. 4,352.47 lakh in FY2024-25), is being evaluated for repurposing. The company has secured Hydroquinone through imports and maintains adequate Catechol inventory, so downstream Straight and Aroma products will not be affected. Separately, a fire incident occurred at the same plant on May 23, 2026 night, caused by a high-temperature thermic fluid leak. The fire was controlled within an hour with no injuries. Estimated loss is around INR 2 crore from 30 MT of Catechol inventory and damage to equipment including the flaker machine, electrical cables, and instruments. Insurance coverage is in place. The adjacent Vanillin facility (Ethyl Vanillin production) was precautionary shut down but is expected to restart within 48 hours.
The Diphenol Plant closure is not material to overall operations given alternative sourcing arrangements. The fire caused limited damage of INR 2 crore with insurance coverage. However, the company faces ongoing raw material supply risks for its specialty chemicals business.