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T’gana pharma plant explosion: Sigachi says unit fully insured, assures support to affected persons

by AIP Online Bureau | Jun 30, 2025 | Indian News, Non-Life, Reinsurance, Risk Management | 0 comments

“The Hyderabad facility is fully insured, and we are in the process of initiating the necessary claims as per standard procedures. We remain committed to resuming operations at the earliest, with enhanced focus on safety, risk mitigation, and operational excellence,” it said.

Sangareddy (Telangana): Sigachi Industries Ltd’s Pashamylaram unit in Telangana in which 12 people died due to a blast on Monday will pause production for 90 days and the plant was fully insured, the company announced.

Besides the 12 deaths, several people were injured and the company expressed anguish over the incident.

While the core manufacturing infrastructure has suffered damage, the operations at the plant will be temporarily paused for an estimated period of 90 days to facilitate replacement and restoration of affected equipment and structures, Sigachi said in a regulatory filing.

“The Hyderabad facility is fully insured, and we are in the process of initiating the necessary claims as per standard procedures. We remain committed to resuming operations at the earliest, with enhanced focus on safety, risk mitigation, and operational excellence,” it said.

While the exact number of injuries is currently being confirmed, the well-being of its employees remains the foremost priority, it said.

About 90 people were working in the plant when the blast took place, reportedly due to a suspected chemical reaction, which also triggered a fire, Health Minister Damodara Raja Narasimha told reporters.

Later in the evening, a police official told PTI that another body was extricated from the debris, bringing the total number of deaths to 13.

“Eleven bodies were recovered from the blast site and two people died while undergoing treatment at a hospital,” the official said.

The explosion was so powerful that some of the workers were thrown nearly 100 metres away, eyewitnesses said.

The cause of the mishap would be known after examination by the technical experts, Narasimha, who visited the accident site along with state Labour Minister G Vivek Venkatswamy, told reporters.

Venkatswamy said 12 of the 34 injured people were critical and put on ventilator support in the hospitals. The respiratory system of these victims is under stress due to the burn injuries, he said.

The government is hopeful that the remaining 22 people will recover soon, he added.
Expressing grief over the tragedy, Prime Minister Narendra Modi conveyed condolences to those who lost their loved ones in the incident. He wished an early recovery to the injured.

In a post on ‘X’, he announced an ex gratia of Rs 2 lakh from the Prime Minister’s National Relief Fund for the next of kin of the deceased and Rs 50,000 for the injured.

The company said it deeply mourns the loss of life and extends heartfelt condolences to the families of the deceased. It also said the firm is extending all possible support to those affected.

The pharmaceutical company in an exchange filing said, “… on June 30, 2025, at approximately 9:20 AM (IST), a fire incident occurred in the vicinity of our Hyderabad Plant located at Pashamylaram, Phase-1…”

“The incident has unfortunately resulted in loss of human life, and there may have been individuals who sustained injuries. While the exact number of injuries is currently being confirmed, the well-being of our personnel remains our foremost priority.”

A thorough on-ground assessment of the situation is currently in progress, and the company is coordinating with relevant authorities to ensure all safety and support protocols are followed, it added.

The company operates three manufacturing facilities for Microcrystalline Cellulose (MCC), one of which is the Hyderabad unit where the incident occurred.
The unit contributes around 6,000 MTPA out of the total operating capacity of 21,700 MTPA, with the balance production coming from our other two facilities located in Gujarat, it added.

The other two plants continue to operate normally, and efforts are being made to optimise production from those units during the interim period, the company said.
Shares of the pharma company, which is one of the major Microcrystalline Cellulose manufacturers globally, ended 11.58 per cent down at Rs 48.79 apiece on BSE.

Y Nagi Reddy, Director General of the Telangana State Disaster Response and Fire Services, said it was suspected that the blast occurred in the drying unit of the plant. However, Inspector General of Police (Multizone) V Satyanarayana told reporters that it was a case of reactor explosion.

“Industrial experts are saying that during the drying process, or a handling process, the pressure could have built up, followed by the blasting of the material that led to the blasting of the entire building,” Reddy told reporters.
He said efforts were also on to search and rescue those trapped in the collapsed three-story building.

Satyanarayana said the impact of the blast was felt for about five km in the Pashamylaram area.

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