Neogen Chemicals Ltd Receives Rs. 50 Crores On-Account Payment for Fire Incident Loss

Neogen Chemicals Ltd has received an on-account payment of Rs. 50 crores from the Insurance Company for the loss of property, plant and equipment due to the fire incident at its Multi-Purpose Plant (MPP3)- Facility in Dahej SEZ. The final settlement will be determined following the completion of the assessment for loss of property, plant and equipment, loss of profit due to business interruption, and reinstatement value of assets. The Company has recognized a loss of Rs. 348.16 Crores on account of damage to certain property, plant & equipment, inventory, and estimated cost of incidental charges. The Company has initiated the reconstruction of the impacted facilities, which is expected to take around 9-12 months. The production of critical specialty products has been shifted to other sites to minimize the impact on earnings.