The Company hereby informs about an operational decision regarding the temporary shutdown of a Furnace of the Company at its plant being Furnace no. 8 at Rishikesh, Uttarakhand
Awaiting price reaction for this filing.
Hindusthan National Glass & Industries Ltd has decided to temporarily shut down Furnace No. 8 at its Rishikesh plant in Uttarakhand after a technical agency found severe corrosion and damage to the furnace refractories, with the crown in a compromised state posing a risk of sudden collapse. The decision was approved at the 37th Committee of Creditors meeting, and the furnace will remain shut until it is rebuilt. Importantly, Furnace No. 7 at the same Rishikesh plant will continue operating, so the plant is not fully closed. The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP), which adds financial uncertainty around how the rebuild will be funded. No physical damage or loss has been reported as of now.
Short-term negative — loss of production capacity from one of two furnaces at Rishikesh, with a rebuild likely requiring significant capital that may be hard to arrange given the ongoing insolvency proceedings. Shareholders should watch for updates on timeline and funding of the rebuild.