The CEAT Company’s plant at Bhandup, Mumbai had a fire accident at its raw material store on February 23. The company has shown a drop in their shares value post the major fire break out.
The company is still in the process of ascertaining the cause of the fire and also the extent of loss. The company confirmed that the fire was extinguished with prompt action from the fire department and there has been no loss of life or damage to the main plant and machinery. The manufacturing operations have been temporarily suspended at the Bhandup plant. The company was thinking of closing down this manufacturing unit since long, and most of the machinery had been shifted. Only one unit was working.
We are unsure if and how this incident will affect the availability of tyres and their prices. However, the company's statement comes as a relief that it is confident to resume the production at the earliest. We hope that the losses for the manufacturer do not affect the supply of tyres and their rates for the consumers.
Source: Business Standard
