On December 12, Gopal Snacks shares experienced a 7% decline following a major fire at the company’s snacks manufacturing factory located on the outskirts of Rajkot city, Gujarat. By 10:15 am, the shares were trading 5.50% lower at ₹427.10 per share.
In response to the fire, Gopal Snacks has assured stakeholders that appropriate measures have been taken to manage the situation. The company confirmed that no casualties or injuries occurred among its personnel at the site. Ensuring the safety of its team members remains a top priority for the company.
Due to the temporary closure of the Rajkot I facility, Gopal Snacks has ramped up production at its Modasa and Nagpur facilities to compensate for the lost output. The company is also collaborating with third-party manufacturers to address any additional local capacity requirements during this period.
Gopal Snacks has stated that its assets are fully insured, and the insurance provider has been notified about the incident. Furthermore, the company emphasized that its critical business systems, including SAP infrastructure, continue to function normally, ensuring business continuity without any data loss or disruption to IT operations.
The company is actively working on restoring operations at the Rajkot I facility as soon as possible. Management is confident that the fire incident will not significantly affect the company’s long-term operations or financial performance. Gopal Snacks has committed to providing regular updates on the situation as operations at the Rajkot I facility are restored. The company reiterated that no injuries or fatalities occurred during the fire incident.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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