Neogen Chemicals Limited — Important, 07-03-2025: Disruption of Operations

A fire incident at Neogen Chemicals' Dahej SEZ manufacturing plant caused extensive damage to the Multi-Purpose Plant (MPP3) and warehouse, while other facilities and infrastructure remained unaffected. Fortunately, there were no casualties. The company anticipates reconstruction will take about 9-12 months, and the loss of assets is covered by insurance. Operations at the affected areas are under a stay order from the Department of Industrial Safety and Health.

In response, Neogen will shift production of critical specialty products to other sites, helping mitigate earnings impact. The standalone revenue guidance for FY 2024-25 has been revised to approximately Rs. 765-800 crore, down from Rs. 800-825 crore, while FY 2025-26 guidance is now Rs. 775-850 crore, reduced from Rs. 950-1000 crore. Ongoing efforts to restore capacity and minimize disruptions are planned. Keep an eye on further developments regarding this incident.