The Hindu Business Line : Flood damage to plant may dent Asahi India's financial performance

ASAHI India Glass Ltd said on Tuesday that its operating income in the current fiscal year might be hurt by as much as Rs 65 crore after floods damaged one of its factories.

The company's float glass plant at Taloja, Maharashtra, was flooded after last month's rains and its operations may stay affected until January next year. The damages and the resultant shutdown of the plant could impact the company's operating income by Rs 45-65 crore in the current year, the company said.

The company said that pursuant to a detailed examination of the plant by the visiting experts from the technical collaborators, it would be required to do a complete replacement of refractories in the metal bath, taking into consideration the random pattern of damage found in bricks. "This, unfortunately, means a considerable later restart of the float glass plant at Taloja. The date could be from early December 2005 to end January 2006, depending on the speed with which some key refractories can be procured", the company said.

Further, Asahi said that it has decided to use this time to do a repair of furnace at the plant which was otherwise due in 2007. This will extend furnace life for over four years and also improve auto quality float glass making capability. The company added that it has formulated and operationalised a detailed recovery plan and is hopeful to complete it in the minimum possible time to ensure restart of the plant within the revised schedule.

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