Shares of KEI Industries Limited slumped 3% on 20 June after the company’s Rakholi and Chinchpada plants were partially affected due to the production suspension amid a labour strike. 

These facilities are located in the Union Territories of Daman and Diu and Dadra & Nagar Haveli.

The company, in its exchange filing, said, “The company is in continuous discussion with the concerned labour contractors and workers to resolve the issue amicably as soon as possible and will provide an update on further developments in due course.”

The company characterised the demand for more pay as “completely unwarranted, “which is one of the explanations for the walkout.

The company went on to say that it anticipates a daily output loss of Rs 8 crore as a result of the strike. However, the exchange register stated that every asset was covered.

For the fiscal year 2024, KEI Industries made capital expenditures at the Chinchpada site, totalling more than Rs 84 crore. The management announced at the earnings conference for the March quarter that the company will be investing an additional Rs 65 crore over the next one to two months towards brownfield capital expenditures.

In its quarterly earnings for January-March, the company reported a net profit of Rs 168.5 crore, marking a 22% year-on-year increase from Rs 138 crore reported in the same quarter last year. 

At 2:36 pm, the shares of KEI Industries were trading 1.54% lower at Rs 4,367.35 on NSE.