Neogen Chemicals Limited has informed the Exchange about Disruption of Operations- Update on Fire incident
NEOGEN · price
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Neogen Chemicals has received Rs. 50 crore as an on-account insurance payment for the fire that damaged its Multi-Purpose Plant (MPP3), warehouse, and tank farms at Dahej SEZ on March 5, 2025. The company has recognized a total loss of Rs. 348.16 crore (standalone) and Rs. 362.90 crore (consolidated), with an insurance claim receivable of Rs. 334.60 crore (standalone). After adjusting for insurance recovery, the net impact stands at Rs. 13.56 crore. Production at the affected facility remains suspended, with reconstruction expected to take 9–12 months. Critical specialty products have been shifted to other sites, and the company has reaffirmed its existing revenue guidance with no changes.
The Rs. 50 crore interim insurance payout provides partial cash relief, but the long 9–12 month reconstruction timeline means production disruption will continue. Shifting production to other sites and the planned Patancheru expansion should help limit earnings damage, though near-term operational uncertainty remains for shareholders.