Neogen Chemicals Receives ₹50 Cr Insurance Payout After Dahej Fire—Recovery Plan in Motion

Neogen Chemicals Ltd. has received an insurance settlement of ₹500 million (₹50 crore) following the March 5, 2025 fire at its Dahej SEZ plant in Gujarat. The payout covers property damage and business interruption losses, as confirmed by the company’s latest regulatory filing. The fire, which broke out at the MPP3 facility, caused extensive damage to plant equipment, warehouses, and tank farms, though no casualties were reported.

 

The company has already initiated reconstruction efforts, with a projected 9–12 month timeline to restore full operations. In the interim, Neogen is relocating production of critical specialty chemicals to its other facilities, including Mahape and Vadodara, to minimize disruption.

 

Following the incident, Neogen revised its FY25 revenue guidance downward to ₹765–800 crore (from ₹800–825 crore), and FY26 to ₹775–850 crore (from ₹950–1,000 crore). Despite the setback, analysts remain optimistic, citing strong fundamentals and robust insurance coverage.

 

Key Highlights:

Insurance payout: ₹50 crore for fire-related losses

 

Incident date: March 5, 2025, at Dahej SEZ

 

Damage: MPP3 plant, tank farms, warehouse

 

Recovery timeline: 9–12 months

 

Revised guidance: FY25 ₹765–800 Cr; FY26 ₹775–850 Cr

 

No casualties; safety protocols praised

 

Source: NDTV Profit