KEI Industries share rises 3%, as labour strike ends, limiting production loss to ₹10 crore

The labour strike began earlier in June and resulted in a production halt at the two units located in the Union Territories of Daman and Diu and Dadra & Nagra Haveli. The strike caused a production loss of approximately ₹10 crore due to the strike. However, the company confirmed that operations at these facilities have been normalised and the production is set to ramp up, according to the statement provided to the stock exchange.

The company also said that higher wages among other demands are the reasons for the strike, which, according to the management, "is completely unwarranted." In its stock exchange filing, KEI Industries stated, "The company is in continuous discussion with the concerned labour contractors and workers to resolve the issue amicably as soon as possible and will provide an update on further developments in due course."

For the financial year 2024, KEI industries invested significantly in its Chinchpada site, with capital expenditures exceeding ₹84 crore. The company has announced during the Match quarter earnings conference that an additional ₹65 crore would be invested over the next one to two months for further capacity expansion at the Chinchpada unit. This investment highlights the commitment to enhancing its production capabilities and meeting growing market demand.

At 2:46 PM, shares of KEI Industries Limited were trading 3.11% higher at ₹4,560 apiece on the NSE.