Neogen Chemicals Limited — Important, 23-04-2025: Disruption of Operations

A fire incident at Neogen Chemicals' Multi-Purpose Plant (MPP3) in Dahej SEZ has led to temporary suspension of production at the affected facilities. The Gujarat Pollution Control Board (GPCB) has imposed an Environment Damage Compensation cost of ₹34.60 lakh and requires a bank guarantee of ₹7.5 lakh for compliance. While operations are halted for approximately 9-12 months for reconstruction, the company has pivoted by relocating the production of critical specialty products to alternate sites with customer approval. Additionally, plans for expansion at the Patancheru Plant are ongoing, which should mitigate the revenue impact during this period. Importantly, there has been no change to the revenue guidance previously provided. Potential growth can be expected as the company adapts and strengthens its operational capacity amidst these challenges. Watch closely for further developments.