Radico Khaitan shines on revoking plant closure

Radico Khaitan on Thursday informed the bourses that pollution control board revoked closure direction on the company’s Uttar Pradesh plant. The company further said that it has not incurred any production loss due to closure. The directions for closure were received on February 21 due to environmental issues concerning liquid discharge.

Besides, the company's grain plant, malt plant and bottling plants at Rampur, UP are running at their original capacities in compliance with the zero-liquid discharge (ZLD) systems. However, the pollution control board has directed the company to restrict its capacity of molasses plant for country liquor from 200 KLD to 77. Also, CPCB has levied an additional environmental compensation of Rs. 1.18 crore.

The company indicated that there will not be any impact on molasses capacity direction on IMFL production and impact on country liquor production is likely to be minimal.

On Friday, the stock of Radico Khaitan reacted positively to the above development. The stock of Radico opened at Rs. 340.10 apiece surged nearly 4 per cent to touch an intraday high of Rs. 355.8 per share. At 14.02 hours, the stock was trading at Rs. 353.8 apiece, up by 3.5 per cent from its previous close.