Gopal Namkeen Shares Drop 8% Due to Fire: Production of 3.5 Lakh Kilos of Snacks Halted at Rajkot Unit, ₹25 Crore Loss
A fire broke out at the Gopal Namkeen unit in Metoda GIDC, Rajkot, on Wednesday afternoon, and was brought under control by night. Fortunately, no lives were lost in the incident. However, the devastating fire resulted in significant damage, with goods and machinery worth an estimated ₹25 crores being destroyed.
The fire also affected Gopal Snacks’ stock prices, which saw an 8% drop when the market opened on Thursday morning, although the prices later recovered.
Due to the extent of the damage at the Metoda unit, it is expected to take 6 to 8 months before the unit can resume operations. This has halted the daily production of approximately 1.5 lakh kilos of snacks at the facility.
The incident serves as a lesson for the authorities, as it was revealed that there are only two fire fighters available among the 1200 factories in the Metoda GIDC area.
Fire Breaks Out at Gopal Namkeen Factory in Metoda, Controlled After Intense Effort
A fire broke out at the renowned Gopal Namkeen factory in Metoda, Rajkot, causing panic on Wednesday afternoon. The fire, which started due to a short circuit in the packing machine, quickly escalated and engulfed the entire five-story unit.
As the fire spread, a major emergency was declared, and fire brigades from various locations were called in for assistance. Firefighters from Rajkot, Metoda, Gondal, Shapar, Jamnagar, Dhoraji, and Upleta—about 15 units in total—responded to the scene.
It took nearly 9 to 10 hours of hard work and around 2 lakh liters of water to finally bring the fire under control. The fire was so intense that smoke clouds were visible up to 5 kilometers away in surrounding villages.
Gopal Namkeen Faces ₹25 Crore Loss Due to Fire
In an interview with Divya Bhaskar, Bipinbhai Hadwani, the Managing Director of Gopal Namkeen, provided details about the fire at their Metoda unit. He mentioned that around 2 PM on Wednesday, the fire broke out in the packing department, where box packing operations were underway.
At the time, about 50-60 employees were working in the department. The fire is believed to have been caused by a short circuit in one of the machines. The estimated loss due to the fire is between ₹20 to ₹25 crores.
Gopal Snacks Unit in Metoda Halted, Production of 3.5 Lakh Kilos of Snacks Affected
The Gopal Snacks unit in Metoda was producing and packing 3.5 lakh kilos of snacks daily before the devastating fire. Due to the severe damage caused by the fire, the unit has been shut down, and it may take 6 to 8 months for operations to resume.
Only 2 Firefighters for 1200 Factories in Metoda GIDC
Metoda GIDC in Rajkot is home to around 1200 small and medium-sized industries. Although there is a fire station in the area, it has only two firefighters to serve all 1200 units. There is a clear need to increase the capacity of the fire department and fire brigade staff.
Bipinbhai, the owner of Gopal Namkeen, mentioned that the fire staff responded promptly yesterday, but he emphasized that the capacity of the Metoda fire station needs to be increased by 100%. He also noted that previous requests had been made, and he would be submitting another request for the expansion of the fire station’s capacity.
Firefighters Mobilized from 7 Locations to Control Gopal Namkeen Fire
Upon receiving a call about the fire at Gopal Namkeen, the first firefighter crew from Kalavad Road rushed to the scene. However, upon reaching, the fire had spread rapidly, prompting the declaration of a major call.
In response, firefighters from the main fire station, Ramapir Chowkdi, Railnagar, Kotharia, and Mavadi, a total of 5 additional crews, were dispatched to the site. Firefighters from Shapar-Metoda and Gondal were also called in, along with one crew each from Dhoraji, Upleta, and Jamnagar.
In total, 15 fire brigades from various locations, including Rajkot, Jamnagar, Gondal, Upleta, Shapar, Metoda, and Dhoraji, were mobilized to control the blaze. The fire department used a significant amount of water—approximately 1.5 to 2 lakh liters, as each fire truck holds 9,000 liters of water—to extinguish the fire.
Fire Breaks Out at Gopal Namkeen Two Days After ₹13.75 Crore GST Notice
In a troubling turn of events, Gopal Namkeen faced a devastating fire just two days after receiving a demand notice from the Central GST Department for ₹13,76,23,559 for the fiscal year 2023-24.
The company’s owners were reportedly called in for a face-to-face meeting with the Joint Commissioner of the CGST office on Saturday to respond to this notice. The fire incident has added to the company’s ongoing challenges.
Gopal Snacks Shares Drop 8% After Fire Incident
Following the fire at Gopal Snacks, the company’s stock price fell by about 8%. On December 12, at 12:10 PM, the share price dropped by 6.86%, falling to ₹420, a decrease of ₹31.
In a statement to the stock exchange, the company mentioned that it had taken necessary measures to control the incident, and no employees were harmed. Gopal Snacks prioritizes the safety of its members.
Due to the current situation at the Rajkot unit, production will be increased in Modasa and Nagpur, and third-party manufacturing may also be utilized if needed. The company confirmed that its assets are insured, and the insurance company has been informed of the incident. Additionally, there was no data loss from IT systems. The company is working to resume operations in Rajkot as soon as possible and is confident that the incident will not have long-term effects.
Bipin Hadwani, the company’s MD, explained that the fire started in the warehouse and spread due to raw material storage. On Wednesday, only a few essential workers were present in the Metoda industrial area as it was a holiday. It is worth noting that Gopal Snacks has a market capitalization of ₹5,360 crore, with a 52-week low of ₹301.05 and a 52-week high of ₹520.
