Hikal receives notice from pollution control board

News: Hikal has received a notice from the Maharashtra Pollution Control Board for the closure of the company’s manufacturing unit at MIDC Taloja, within 72 hours of receipt of the said notice. This is mainly due to certain alleged non-compliances with the conditional consent to operate and the recent Surat issue. The company is taking appropriate legal measures and seeking relief from closure notice.

Views:The Taloja unit had contributed ~ Rs.260 crore (15% of turnover in FY21). Any shutdown of the plant is likely to hamper execution of the order book for Hikal. Regulatory overhang related to Surat issue remains and related regulatory challenges are likely to affect the business

Impact: Negative