Divyashakti Ltd Temporarily Reduces Production Due to Cost Pressures
Divyashakti Ltd has announced a temporary reduction in its production levels, effective September 29, 2026, due to significant increases in input and logistics costs. The company cited rising raw material, consumable, and freight expenses, exacerbated by geopolitical tensions and increased crude oil prices (from USD 45 to USD 108 per barrel). Additionally, a 41% effective duty burden on affected Indian-origin products in the US market has pressured export volumes, selling prices, and margins. Ocean freight rates have also surged from USD 1,300 to USD 9,000 per container. This operational measure aims to align production with prevailing demand, costs, and market conditions. The company will monitor the situation and restore normal production as conditions stabilize.
Key Highlights
- Production temporarily reduced due to rising input and logistics costs.
- US tariffs and geopolitical tensions impact export competitiveness and margins.
- Significant increase in raw material (resin up 72%) and freight costs noted.
- Company aims to align production with current market and cost realities.
Price Impact
More from DIVSHKT