Sigachi Industries Share Price Falls Sharply After Hyderabad Explosion

Market Performance

The share price of Sigachi Industries witnessed a significant decline for the second consecutive session on July 1.

• On Tuesday, the stock dropped 7% intraday, hitting ₹47.86.
• This fall followed an 11.5% decline on Monday, sparked by a significant industrial accident.
• The stock is now down over 31% from its 52-week high of ₹69.75.
• It remains above its 52-week low of ₹34.51, recorded in February 2025.

Monthly trend analysis shows:

• June 2025: Share price down 8%
• May 2025: Gained 26.4%
• April 2025: Rose 18.7%
• Before this, the stock was in a downtrend for four consecutive months

Main News: Reactor Blast at Hyderabad Plant

The stock's sharp correction was triggered by a deadly reactor explosion at Sigachi Industries' Hyderabad facility.

• The incident occurred on June 30 at 9:20 AM IST.
• The site was located at Plot No. 20-21, IDA Pashamylaram, Phase 1, Medak District, Telangana.
• A reactor blast led to a massive fire and partial collapse of the structure.
• As per official updates, around 34 workers were injured, many with critical burns.
• Several people were feared trapped under the debris, prompting a rescue operation.

Company Statement

In an official exchange filing, the company expressed:

• Deep sorrow over the lives lost.
• Condolences to the families of the deceased.
• Assurance that employee welfare remains a top priority.
• Confirmation of damage to civil infrastructure and support equipment.
• A commitment to conduct an on-ground safety assessment in coordination with authorities.

Operational Impact

Sigachi Industries manufactures Microcrystalline Cellulose (MCC) across three facilities. The Hyderabad unit plays a significant role in its overall output.

• The Hyderabad plant contributes 6,000 MTPA to the company's total capacity.
• Total capacity across all plants stands at 21,700 MTPA.
• The other two plants in Gujarat remain fully operational.

Due to the incident:

• Hyderabad operations will be suspended for 90 days.
• The focus will shift to maximize output from the Gujarat units, thereby minimizing production disruptions.
• Restoration efforts are already underway.

Company Details

Sigachi Industries is a key player in the pharmaceutical excipient market, with MCC being a core product.

• The company operates three manufacturing units across India.
• The Hyderabad plant, now temporarily closed, is critical to its production strategy.
• The firm is coordinating with local authorities to ensure compliance with safety protocols following the incident.

Summary

The share price of Sigachi Industries has taken a hit following a serious industrial accident at its Hyderabad facility. The two-day fall totals over 18%, highlighting investor concerns over operational continuity.

While the company has acted swiftly to assess the damage and support affected families, the temporary halt in production at a major facility poses short-term challenges. However, ongoing operations at its Gujarat plants may provide some relief in the coming weeks.