Intimation under Regulation 30 of the SEBI (LODR) Regulations, 2015 regarding the strike the announced by Labour Union
Awaiting price reaction for this filing.
Operations at Virgo Polymers' factory in Maraimalai Nagar, Tamil Nadu have been disrupted by a strike called by the ATTUC Union, involving 87 employees. The strike stems from internal disputes over operational practices and high waste levels, and the company has suspended operations for safety reasons. Complete production has been lost for the last 45 days, with ongoing orders also affected, though the full financial impact has not yet been quantified but is expected to be significant. There is no property damage, and operating losses are not covered by insurance. Management is working with the Labour Councillor to resolve the issue and is even considering relocation due to safety threats to the workforce.
Shareholders should expect meaningful revenue and profit loss for the period of the disruption, with the exact impact still under assessment. The delay in disclosing the strike and the possibility of plant relocation add uncertainty, which could weigh on the stock in the short term until normalcy is restored.