Specialty chemicals manufacturer Neogen Chemicals Ltd has received an additional ₹15 crore insurance payment towards loss of property, plant and equipment following the fire incident at its Multi-Purpose Plant (MPP3) facility, warehouse and tank farms at Dahej SEZ on March 5, 2025. According to reports from CNBC TV18, the payment was released on July 16, 2026, based on the recommendation of surveyors in their interim report. With this latest payment, the company's total on-account insurance claim received to date stands at ₹155 crore. The fire incident affected the Multi-Purpose Plant (MPP3)- Facility, warehouse, and tank farms, with production and operations remaining temporarily suspended.
The company has recognised a net loss of ₹13.56 crore (₹14.08 crore on a consolidated basis) for FY 2024-25 after accounting for the damage and insurance receivables. The total assessed loss was ₹348.16 crore on account of damage to certain property, plant and equipment, inventory and estimated incidental charges. As reported by CNBC TV18, the company has recognised an insurance claim receivable of ₹334.60 crore to the extent of recovery of loss after adjusting applicable deductibility, considering assessment of loss, admissibility of claims under the policy, adequacy of coverage and nature of loss. On a consolidated basis, the insurance claim receivable stood at ₹348.82 crore.
The production and operations of the affected MPP3 facility, warehouse and tank farms remain temporarily suspended. According to CNBC TV18, the company has realised ₹9.38 crore from the sale of salvaged scrap and incurred further incidental charges of ₹1.41 crore, which have been claimed under the insurance policy. The company has not accounted for claims related to loss of profit due to business interruption and excess value of reinstatement of assets over written-down value, adhering to accounting conservatism. Construction of the replacement plant is progressing rapidly, with commissioning scheduled for H1FY27.
Construction of the replacement plant is progressing rapidly, with commissioning scheduled for H1FY27. As reported by CNBC TV18, in the interim, the company has shifted production of critical select specialty products to other sites based on approval from customers. This, combined with the planned expansion in Patancheru Plant, will help minimise the impact on earnings going ahead to minimise business disruption. The company is proceeding with a planned expansion at its Patancheru Plant to further mitigate the impact of the facility suspension.
Shares of Neogen Chemicals Ltd ended at ₹2,152.00, down by ₹170.35, or 7.34%, on the BSE. The company noted that the final settlement will be determined in various stages after completion of assessment for losses related to property, plant and equipment, other assets at the Dahej SEZ plant, loss of profit due to business interruption and reinstatement value of assets. Further settlement of claims will be determined in stages following the completion of assessment for loss of assets, loss of profit due to business interruption, and reinstatement value.
