COMPLIANCE FAILURES AT SIGACHI INDUSTRIAL UNIT

COMPLIANCE FAILURES AT SIGACHI INDUSTRIAL UNIT

Sigachi Industries Ltd. is an Indian listed company  manufacturing Microcrystalline Cellulose (MCC) and other pharmaceutical excipients.

Sigachi Industries witnessed a fatal explosion and fire at its Pashamylaram factory in Sangareddy district, Telangana, on June 30, 2025.

LOSS OF LIFE

Company reported  loss of life about 40 deaths and over 33 injuries due to fire accident.

NO OBJECTION CERTIFICATE (NOC)

The unit did not have a No Objection Certificate (NOC) from the department and lacked basic fire safety infrastructure.

RISK MANAGEMENT POLICY

There is  no  Risk Management Policy in place in the Company  as the workers had repeatedly informed the management about the risks of using outdated machinery, but their concerns were ignored.

NO AUTOMATIC SAFETY INTERLOCKS

Critical safety systems, such as automatic machine shutdowns upon overheating, were reportedly absent or non-functional.

• Poor maintenance and aging machinery

• Inadequate firefighting infrastructure

• No third‑party safety audits

This fatal tragedy highlights deep-rooted compliance failures, from ignored alarms to expired certificates, structural flaws, and oversight failures.

Hence , it is the duty  every listed company to strengthen its compliance strategy in order to ensure safety in the manufacturing plant.

R V SECKAR FCS,LLB