Hindusthan National Glass & Industries Limited has informed regarding an operational decision being taken for temporary shutdown of a furnace of the Company being Furnace no. 8 at its plant at Rishikesh, Uttarakhand
Awaiting price reaction for this filing.
Hindusthan National Glass & Industries has decided to temporarily shut down Furnace No. 8 at its Rishikesh, Uttarakhand plant after an expert technical agency (DNV-GL) found the furnace refractories to be corroded and damaged, with the crown in a compromised state at risk of sudden collapse. The decision was approved by the Committee of Creditors during their 37th meeting, and the furnace will remain shut until it can be rebuilt for safety reasons. The company clarified that no actual damage has occurred yet and the plant will continue partial operations via Furnace No. 7. Notably, the company is currently undergoing the Corporate Insolvency Resolution Process (CIRP), meaning it is already in financial distress under creditor oversight.
This is a negative development for shareholders as it will reduce production capacity and revenue from the Rishikesh unit until the furnace is rebuilt, adding to operational challenges for a company already under insolvency proceedings. However, the proactive shutdown avoids a potential catastrophic failure and the company confirms other furnaces remain operational.