Pashamylaram industrial explosion: Sigachi suspends production at Hyd unit for 90 days

The company operates three manufacturing facilities for Microcrystalline Cellulose, one of which is the Hyderabad unit where the incident occurred

New Delhi: Sigachi Industries on Monday said production at its Hyderabad plant, which saw a fire incident leading to the death of several workers, would be paused for around 90 days to restore affected equipment and structures.

In addition to the human impact, the incident also caused damage to certain ancillary equipment and civil structures within the facility, it said in a regulatory filing.

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The 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, Medak District.”

“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.

“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,” the company said.

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.

“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.