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Fire at M&M Nasik plant, operations suspended


Mahindra & Mahindra Ltd said today that a fire broke out at it Nashik plant this morning and affected the storage areas pertaining to manufacturing of its Scorpio and Xylo TCF lines.

The fire has been confined to this specific area, the company said in a filing with the Bombay Stock Exchange and added that no casualty had been reported.

The company has suspended operations in the first shift at the plant as a safety measure, and claimed that the cause and extent of damage was being ascertained.

The production loss in the first shift is estimated to be around 250 vehicles.

Mahindra said the plant assets are adequately covered by insurance and that the management expected to restart the Bolero & Verito lines fully and the Scorpio line partially, from the second shift onwards.

One domestic brokerage analyst estimates the maximum impact would be 7-8% of this month's production of the two models.

Shares in Mahindra & Mahindra fell 1.8% when the news of fire broke out.