Shares of Gopal Snacks Limited dropped by 10% on December 12 following reports of a severe fire outbreak at its Rajkot production facility. The incident, which occurred on Wednesday afternoon, caused significant damage to the facility and left three people injured.
Incident Details:
- Fire Scale: A major call was issued, mobilizing 12 fire engines from neighboring regions to combat the blaze.
- Response: Rajkot district collector Prabhav Joshi confirmed the deployment of additional fire tenders and ambulances. Revenue officers and police have been stationed for security and emergency management.
- Injuries: Three individuals sustained injuries in a stampede during the fire and were hospitalized.
- Holiday Factor: The factory was closed for a holiday, leading to minimal staff presence, mitigating further casualties.
- Production Unit Location: The affected unit is situated in the Metoda GIDC estate in Lodhika taluka.
As of 9:15 AM the shares were trading 10% down at ₹406.55 on NSE
The stock has declined by over 17% in the past month, reflecting investor concerns about the recent fire incident. Despite this setback, the stock remains up 15.83% year-to-date, supported by robust performance earlier in the year.
Company Response:
Gopal Snacks Limited confirmed that production activities have been scaled up at its Modasa and Nagpur facilities to offset disruptions caused by the Rajkot plant closure. Additionally, the company is engaging third-party manufacturers to meet demand.
Key measures by Gopal Snacks:
- Asset Insurance: The company’s assets are fully insured, with claims being processed.
- Business Continuity: Critical IT systems, including SAP infrastructure, remain operational.
- Production Realignment: Operations at alternative facilities have been increased to mitigate supply chain interruptions.
