Major Fire Incident at Sangam (India) Limited’s Denim Unit in Rajasthan
In a significant development, Sangam (India) Limited, one of India’s leading textile manufacturers, has reported a fire outbreak at its Denim Division, located in Village Billiya Kalan, Bhilwara, Rajasthan. The fire incident occurred on March 6, 2025, at approximately 1:30 PM, raising serious concerns regarding operational disruptions and financial losses. Fortunately, there were no human injuries or casualties reported, as the fire was swiftly controlled by authorities. The company has initiated an internal investigation to determine the exact cause of the fire and assess its overall impact.
As per the latest corporate filing under SEBI (Listing Obligations and Disclosure Requirements) Regulation 30, the estimated financial loss due to the fire ranges between ₹20-25 Crore, categorizing it as a material event. The fire has primarily affected the plant and machinery in the Denim Division, resulting in damage that could temporarily hinder production capabilities. However, Sangam India has taken proactive measures to continue production using external facilities, ensuring minimal operational disruptions.
💰 Financial Impact and Insurance Coverage
One of the biggest concerns among investors and stakeholders is the financial strain caused by such an unforeseen incident. However, Sangam (India) Limited has confirmed that the company holds comprehensive insurance coverage under an Industrial All Risk (IAR) policy. The total sum insured under this policy is ₹538.32 Crore, along with an additional ₹110 Crore coverage specifically for fire loss of profit. This robust insurance plan is expected to provide financial stability and assist in the recovery process without causing major liquidity concerns. The company has already initiated its insurance claim process, and the reimbursement will be crucial in mitigating losses.
🏭 Incident Overview
Sangam (India) Limited, a leading textile manufacturer, has reported a fire incident at its Denim Division located in Village Billiya Kalan, Bhilwara, Rajasthan, on March 6, 2025, at 1:30 PM. Fortunately, there were no human injuries or casualties reported. The company is assessing the exact cause and impact of the fire.
🔎 Key Details of the Fire Incident
✅ Loss Estimation: ₹20-25 Crore due to damage to plant & machinery.
✅ Insurance Coverage: The company holds an Industrial All Risk (IAR) policy with a sum insured of ₹538.32 Crore and an additional ₹110 Crore coverage for fire loss of profit.
✅ Production Impact: Minimal disruption; production continues using external facilities.
✅ Recovery Measures: Restoration efforts underway to resume full operations.
📉 Stock Market Impact
📊 The fire incident may negatively impact short-term investor sentiment, especially as the loss is considered material under SEBI regulations.
📉 However, strong insurance coverage and swift recovery measures could stabilize market confidence in the mid-to-long term.
🔄 Investors may witness short-term volatility in Sangam India’s stock price.
🏢 About Sangam (India) Limited
🔹 Founded in 1984, Sangam (India) Limited is a leading textile manufacturer in India.
🔹 Specializes in denim, yarn, and fabric production with a strong domestic & international presence.
🔹 Listed on BSE (Scrip Code: 514234) & NSE (Symbol: SANGAMIND).
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
