GOPALBSEGopal Snacks LtdMediumPositive
Announced Mon, 11 May · 10:33 IST

The Company has re-commenced its manufacturing facility at Rajkot Main Plant, details attached herewith.

Plant Fire AccidentPlant Regulatory ShutdownPlant RestartedCapex & Operations View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-4.1%1-day move
₹333.95
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₹333.30
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AI summary

Gopal Snacks Limited has re-commenced operations at its Rajkot Main Plant facility after it was non-operational due to a fire incident in December 2024. The company completed reinstatement of the manufacturing facility and obtained necessary government approvals to resume operations. The Rajkot facility will now operate with an installed capacity of 1,05,233 MTPA, producing a diversified product portfolio including Gathiya, Namkeen, Snack Pellets and Extruded Snacks. As part of this transition, the company will discontinue operations at its Gondal facility and consolidate production at Rajkot, which is expected to improve profitability through lower power costs (boiler-based system), reduced transportation costs due to proximity to dealers in Saurashtra region, and lower labor costs. Ancillary plants for Papad, Spices and Besan were unaffected by the fire and continued normal operations. The Corporate Office and support facility buildings reinstatement is still in progress but will not impact operational requirements.

Likely market impact

The restart of Rajkot plant marks recovery from the December 2024 fire incident, with the company expecting improved profitability through cost efficiencies from consolidating production at Rajkot while discontinuing Gondal operations. This should positively impact the company's production capacity and bottom line going forward.