Event 1: Shutdown of Diphenol Plant

Location: Plot No. Z/96/D, Dahej SEZ -II, Tal. Vagra, Dist. Bharuch, Gujarat

Reason for Shutdown: Severe constraints in the availability and prices of key raw materials due to current geopolitical issues and economic environment.

Action Taken: The company had previously reduced capacity utilization and initiated steps towards a full shutdown.

Operational Impact:

  • Production of downstream Straight products is not expected to be affected, as Hydroquinone has been secured through imports in anticipation of the shutdown.
  • Adequate Catechol inventory is available to support production of Aroma products.

Future Plans: The Diphenol facility will remain shut. Its restart will be evaluated based on improvements in the economic and geopolitical environment. The company is analyzing options to re-purpose the plant, with its future utilization to be determined by economic scenarios.

Financial Impact (Annexure A):

  • The Diphenol Plant contributed a turnover of ₹4,352.47 lakh in FY2024-25, representing 5.06% of the company's total turnover.
  • The disclosure states there is "no material impact on the operations of the Company and operations continues to be normal."

Effective Date of Closure: May 24, 2026

Event 2: Fire Incident at Diphenol Plant

Date and Time of Incident: May 23, 2026, at approximately 11:30 PM.

Cause: Prima facie evidence indicates the fire was caused by a leakage of high temperature thermic fluid, which spread quickly towards the flaking unit.

Containment: The fire was brought under control and completely extinguished by 12:30 AM on May 24, 2026 (within one hour).

Response: The reduced level of activity due to the ongoing shutdown process enabled the operations team to contain the fire promptly and evacuate personnel immediately, avoiding any serious injuries.

Precautionary Measure: The Vanillin facility (where manufacture of Ethyl Vanillin was in progress) was immediately shut down as a precaution.

Assessment of Loss (Annexure B):

  • Loss of approximately 30 MT of Catechol inventory.
  • Damage to the flaker machine, electrical cables, certain measuring instruments, and insulation.
  • The estimated total loss is approximately ₹2 crore.

Insurance: The loss is adequately covered by insurance. Necessary steps are being initiated to file an insurance claim.

Regulatory Compliance: The company has informed all relevant regulatory authorities of the incident and taken necessary measures to prevent and contain any environmental hazards.

Operational Outlook:

  • Following initial safety and operational assessments, the company plans to restart Ethyl Vanillin production.
  • The restart is expected within the next 48 hours from the disclosure date (i.e., by May 26, 2026).
  • The company does not anticipate any impact on sales of downstream Straights and Aroma products.