A major blast in Sigachi Industries, one of the largest manufacturers of cellulose excipients, plant claimed 12 lives and left over two dozen workers injured.
According to police, the blast occurred in the early hours of Monday in the company’s manufacturing unit located in Pashmylaram industrial area here. The building in which the blast occurred has been totally damaged and 11 fire-tenders were pressed into service to douse the fire. While five workers died on the spot, three succumbed to injuries later.
The injured have been rushed to nearby private hospitals and further investigation is on. Sagachi Industries scrip lost 11.87 per cent on the BSE on Monday to close at at ₹48.63.
The Hyderabad-based drug maker operates five state-of-the-art facilities, located in Hyderabad, Sultanpur, Jhagadia, Dahej & Raichur. Apart from its major areas of formulations, Sigachi recently entered into coatings market to harness growth potential.
Operations halt
Meanwhile, in a disclosure to the BSE on the accident, the company said: “The incident has unfortunately resulted in loss of human life, and there may have been individuals who sustained injuries. While the exact number of injuries is currently being confirmed, the well-being of our personnel remains our foremost priority. Sigachi deeply mourns the loss of life and extends heartfelt condolences to the families of the deceased. We are extending all possible support to those affected.’‘
The incident also caused damage to certain ancillary equipment and civil structures within the facility. A thorough on-ground assessment of the situation is currently in progress, and we are coordinating with relevant authorities to ensure all safety and support protocols are followed.
While the core manufacturing infrastructure has suffered damage, the operations at the plant will be temporarily paused for an estimated period of 90 days to facilitate replacement and restoration of affected equipment and structures.
Impact on capacity
The company operates three manufacturing facilities for microcrystalline cellulose (MCC), one of which is the Hyderabad unit where the incident occurred.
“The unit contributes approximately 6,000 mtpa out of our total operating capacity of 21,700 mtpa , with the balance production coming from our other two facilities located in Gujarat. The other two plants continue to operate normally, and efforts are being made to optimise production from those units during the interim period,’‘ it said.
According to the company, the Hyderabad facility is “fully insured’‘ and it is in the process of initiating the necessary claims as per standard procedures.
Early this month, the ₹500 crore company (FY25) inaugurated its state-of-the-art Research and Development (R&D) Center in Hyderabad, as part of its measures to consolidate API development and analytical capabilities under one roof.