Asahi India: flood damage to plant may hit income

Current fiscal year operating income of Asahi India Glass Ltd might be down by as much as INR 650 million after floods damaged one of its plants, the company said 30 August 2005.
The firm“s float gl…

Current fiscal year operating income of Asahi India Glass Ltd might be down by as much as INR 650 million after floods damaged one of its plants, the company said 30 August 2005. The firm“s float glass plant at Taloja, Maharashtra, was flooded after July“s rains and its operations may be affected until January 2006. The damage and the resulting plant shutdown could hit the company“s operating income by INR 450-650 million in the current year, the company said. The company said visiting experts from technical collaborators had examined the damage and the firm would need to carry out the complete replacement of refractories in the metal bath, considering the random pattern of damage found in bricks. “This, unfortunately, means a considerable later restart of the float glass plant at Taloja. The date could be from early December 2005 to end January 2006, depending on the speed with which some key refractories can be procured”, the company said. Asahi India has decided to take advantage of the downtime in order to bring forward a repair of furnace at the plant which was scheduled for 2007. This will extend furnace life for over four years and also improve the production capability for auto quality float glass. The company added that it has formulated and put into operation a detailed recovery plan and is hopeful that it will becompleted in the minimum possible time to ensure restart of the plant within the revised schedule.