Neogen Chemicals Limited has informed the Exchange about General Updates - update on fire incident.
NEOGEN · price
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Neogen Chemicals has received Rs. 60 Crore as the third 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. Total on-account claims received so far stand at Rs. 140 Crore. The company has recognized a total loss of Rs. 348.16 Crore (standalone) / Rs. 362.90 Crore (consolidated) from property damage, plant & equipment, inventory, and incidental costs, against an insurance claim receivable of Rs. 334.60 Crore (standalone) / Rs. 348.82 Crore (consolidated). On a net basis, the impact has been limited to Rs. 13.56 Crore (standalone) due to insurance recovery. Production at the affected facility remains suspended, with the replacement plant's commissioning scheduled for Q1 FY27. Critical specialty products have been shifted to other company sites to minimize business disruption.
Positive near-term: the third insurance tranche improves cash flow and reduces uncertainty around recovery. However, full normalization of production is still over a year away, so earnings may continue to be impacted until the replacement plant is commissioned in Q1 FY27.