Business

Aurobindo Pharma's Lyfius Temporarily Halts Pen-G Production After Fire Incident in Kakinada Plant

Fire Incident at Kakinada Plant

HYDERABAD: Aurobindo Pharma's subsidiary, Lyfius Pharma Pvt Ltd, has temporarily suspended production at its Penicillin-G manufacturing plant in Kakinada, Andhra Pradesh, following a fire incident on Sunday night.

The fire, which broke out near the coal crusher area, caused damage to ancillary equipment but spared the core manufacturing infrastructure. Fortunately, there were no injuries reported.

Fire incident forces Aurobindo arm Lyfius to temporarily pause Pen-G production at Kakinada plant

Impact and Recovery

The company estimates a temporary pause in operations for 20 to 25 days to facilitate equipment replacements. A thorough damage assessment is underway, with the incident not expected to materially affect the group's operations or financials, thanks to full insurance coverage.

The fire's cause is attributed to the self-ignition of coal, with investigations ongoing to pinpoint the exact reasons.

About the Plant

This 15,000 metric tonnes per annum capacity plant, established under the Indian government's PLI scheme with a Rs 2,500 crore investment, began operations in April 2024. It serves both domestic and export markets, producing Pen-G, and was virtually inaugurated by Prime Minister Narendra Modi in October 2024.