Sigachi Industries plant tragedy: 40 killed, company halts operations for probe; stock tumbles 11%
Sigachi has clarified that, contrary to certain media reports, the accident was not caused by a reactor explosion. The company will continue to keep stakeholders informed as further details emerge from the investigation.
- Jul 2, 2025,
- Updated Jul 2, 2025 1:18 PM IST
Sigachi Industries Ltd informed bourses on Wednesday about a tragic incident at its Pashamylaram facility in Telangana, which led to the loss of 40 employees and left over 33 others injured. The company has expressed deep sorrow over the incident and extended its heartfelt condolences to the affected families.
In the aftermath of the accident, Sigachi has been actively involved in emergency response efforts and is offering comprehensive support to the families of those impacted. As part of this commitment, the company has announced an ex gratia compensation of Rs 1 crore for the families of the deceased.
Injured individuals are being provided with full medical care and rehabilitation assistance. The company is also extending full cooperation to authorities in the ongoing investigation to ascertain the cause of the incident.
Sigachi has clarified that, contrary to certain media reports, the accident was not caused by a reactor explosion. The company will continue to keep stakeholders informed as further details emerge from the investigation.
As a precautionary measure, operations at the Pashamylaram facility have been temporarily suspended for approximately 90 days to facilitate a thorough investigation and to reinforce safety protocols.
Regarding production, Sigachi mentioned that its Telangana facility accounts for 6,000 MTPA of the company's total Microcrystalline Cellulose (MCC) capacity of 21,700 MTPA. The two plants located in Gujarat remain fully operational and the company is actively working to scale up output at these facilities to offset the temporary shutdown of the Telangana unit.
The company also confirmed that the affected facility is fully insured. "We are initiating insurance claims as per standard procedure. Our focus remains on restoring operations swiftly, with renewed emphasis on safety, risk management, and operational excellence," it added.
On the stock-specific front, Sigachi slumped 10.98 per cent to hit a day low of Rs 41.01. Kunal Kamble, Senior Technical Research Analyst at Bonanza, said, "The stock is currently trading below its key EMAs, indicating short-term bearish sentiment. Increased volumes during sell-offs further confirm selling pressure. Sigachi could slip towards Rs 38.22 level in the near term. On the upside, a decisive close above Rs 56 is needed to revive bullish momentum, with immediate resistance at Rs 50.35."
Sigachi Industries Ltd informed bourses on Wednesday about a tragic incident at its Pashamylaram facility in Telangana, which led to the loss of 40 employees and left over 33 others injured. The company has expressed deep sorrow over the incident and extended its heartfelt condolences to the affected families.
In the aftermath of the accident, Sigachi has been actively involved in emergency response efforts and is offering comprehensive support to the families of those impacted. As part of this commitment, the company has announced an ex gratia compensation of Rs 1 crore for the families of the deceased.
Injured individuals are being provided with full medical care and rehabilitation assistance. The company is also extending full cooperation to authorities in the ongoing investigation to ascertain the cause of the incident.
Sigachi has clarified that, contrary to certain media reports, the accident was not caused by a reactor explosion. The company will continue to keep stakeholders informed as further details emerge from the investigation.
As a precautionary measure, operations at the Pashamylaram facility have been temporarily suspended for approximately 90 days to facilitate a thorough investigation and to reinforce safety protocols.
Regarding production, Sigachi mentioned that its Telangana facility accounts for 6,000 MTPA of the company's total Microcrystalline Cellulose (MCC) capacity of 21,700 MTPA. The two plants located in Gujarat remain fully operational and the company is actively working to scale up output at these facilities to offset the temporary shutdown of the Telangana unit.
The company also confirmed that the affected facility is fully insured. "We are initiating insurance claims as per standard procedure. Our focus remains on restoring operations swiftly, with renewed emphasis on safety, risk management, and operational excellence," it added.
On the stock-specific front, Sigachi slumped 10.98 per cent to hit a day low of Rs 41.01. Kunal Kamble, Senior Technical Research Analyst at Bonanza, said, "The stock is currently trading below its key EMAs, indicating short-term bearish sentiment. Increased volumes during sell-offs further confirm selling pressure. Sigachi could slip towards Rs 38.22 level in the near term. On the upside, a decisive close above Rs 56 is needed to revive bullish momentum, with immediate resistance at Rs 50.35."