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Shasun Pharmaceuticals estimates a loss of Rs 50 crore from the closure of its Cuddalore plant due to a chemical leak two weeks ago.
With Inspector of factory giving its clearance, the plant, which makes anti-ulcerant drugs such as Ranitidine, Nizatidine and Gabapentin, expects to start operations in a day or two.
During the company's extraordinary general meeting, Mr Abhaya Kumar, Director, Operations, Shasun, said that March is generally a high target month and with the closure of Cuddalore plant for a fortnight would mean a revenue loss of Rs 50 crore.
He said that the company would have managed to report better results for last quarter of the current financial year if not for the unfortunate incident. Mr Abhay Kumar tipped that the company may report losses as a result.
The drug maker reported a profit of Rs 37 lakh on flat revenue of Rs 145 crore for the third quarter ending December 31, 2010. For the preceding quarter ending September 30, 2010, Shasun reported a loss of Rs 5.5 crore on a turnover of Rs 147 crore.
Bad decisions
When asked about the reason for the company's poor performance, Mr Abhaya Kumar said it was due to some “bad decisions” taken by the management. He said that the company has “good orders” and expects better performance in 2011-12.
Clarifying to the shareholders queries, Mr Abhaya Kumar said there was no casualty due to the Cuddalore incident. Broken bromine bottles kept in wooden craters resulted in smoke that caused fear and panic among people to get admitted in the hospital, he said. The local authorities had directed Shasun to shut its plants on March 7 when the event occurred.
One of the resolutions was to re-designate Mr Abhaya Kumar as the Managing Director of the company from April 1, 2011. Mr Vimal Kumar will cease to be Managing Director from April 30, 2011. Mr Vimal Kumar assumed office as Managing Director on July 30, 2010.The other resolution was the change in auditor from V.Jagadisan and Co to B.S.R Company.
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