Hikal Limited has stopped production of its Crop Protection Division due to non-availability of industrial oxygen. 

Due to the 2nd wave of COVID-19, the government authorities have directed the use of oxygen towards medical use only. In the current circumstances, the company is finding it difficult to procure oxygen for industrial use. 

Based on the current situation, the production of one of its products which needs oxygen in the manufacturing process at Taloja facility which is part of the Crop Protection Division has been stopped. 

It is difficult to ascertain the exact financial impact of the same as of now, however, the company foresees that the sales of this product will be impacted in Q1 FY22. The company has kept its customers informed and will work with them to make up for the shortfall in delivery in the coming quarters.

 The company is confident that as soon as the availability of oxygen for industrial use improves, the company will ramp-up the production of this product. 

The company stands in full support of the decision to divert the oxygen from industrial use to medical use for greater good as the priority right now is public welfare.