Shares of Sigachi Industries dropped again on July 1, following a major explosion at its Hyderabad manufacturing plant. This is the second day of heavy losses. On Tuesday, the stock fell 7%, after falling 11.5% the previous day. The crash came after a deadly blast shook the company’s reactor unit on June 30.
The explosion happened at the Pasamailaram industrial area near Hyderabad. A reactor blew up around 9:20 AM at Plot No. 20-21, IDA Pashamylaram, Medak district, Telangana. The blast caused a massive fire and the building partly collapsed. Sadly, about 34 workers were injured. Some are in critical condition. There have also been deaths, though exact numbers are still coming in.
Rescue teams are still searching the wreckage. Many are feared trapped under debris. The situation remains tense.
In an exchange filing, Sigachi Industries shared its sorrow. The company said it is heartbroken over the loss of life. It also promised help to the injured and the families affected. “Employee safety is our top priority,” the company stated.
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90-day shutdown to affect output
The Hyderabad plant was a key unit for Sigachi Industries, producing 6,000 metric tonnes per year of Microcrystalline Cellulose (MCC). The total company capacity is 21,700 MTPA. The remaining two plants in Gujarat are still running and will try to fill the gap.
The company said that operations at the Hyderabad plant will stop for around 90 days. This break is needed to repair equipment and rebuild damaged parts. Management is trying to increase production at its other plants during this time.
Investors react with fear
Sigachi’s share price has dropped over 31% from its 52-week high of ₹69.75 in August 2024. After touching a low of ₹34.51 in February 2025, the stock had rallied in April and May. But that positive trend reversed in June with an 8% drop—and now July has started with a crash.
Tuesday’s closing price was ₹47.86.
What’s next for Sigachi Industries?
The road ahead looks tough. Investors are watching closely. Safety checks, plant recovery, and company support to victims will matter. If handled right, the company can recover. But right now, the blast has shaken trust.
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