National Peroxide announces temporary shutdown of Kalyan plant

National Peroxide on Monday informed the bourses that the company has decided to temporarily shut down its plant located at Kalyan, Maharashtra with effect from 30th September 2019. This plant has production capacity of 95,000 MT p.a. and at present it is running at 100 per cent capacity.

The plant will remain shut down for an approximate period of 90 days. This plant is major revenue driver for the company. During fiscal year 2018-19, it contributed nearly Rs. 420.61 crore to the revenue, representing 95 per cent of total revenue.

The company's business segment consists of manufacturing of hydrogen peroxide. The company further added that during the shutdown it will continue to service its key customers uninterruptedly from the inventory of finished goods accumulated for the purpose.

The reason for this shutdown is that the company is expanding this capacity to 150,000 MT p.a. with an investment of around Rs. 200 crore which will be funded through combination of external commercial borrowings and internal accruals. This expansion would help the company to improve its market share and overall performance.

In response to this development, the stock of National Peroxide dipped nearly 4.3 per cent to touch intra-day low of Rs. 1850 apiece. At 11.15 hours, the stock was trading at Rs. 1900, down by 1.8 per cent from its previous close.