Camlin Fine Sciences Initiates Shutdown of Diphenol Plant Amid Raw Material Constraints, Reports Fire Incident

Camlin Fine Sciences Initiates Shutdown of Diphenol Plant Amid Raw Material Constraints, Reports Fire Incident​

Camlin Fine Sciences Limited announced the shutdown of its Diphenol Plant, citing geopolitical issues and severe constraints on the availability and pricing of key raw materials. The facility, located at Plot No. Z/96/D, Dahej SEZ II, Tal. Vagra, Dist. Bharuch, Gujarat, has had its capacity utilization reduced as the company initiated steps toward the shutdown.

The company stated that the shutdown is anticipated not to affect the production of downstream Straight products. This stability is supported by securing Hydroquinone through imports and maintaining adequate Catechol inventory to support Aroma product manufacturing. Consequently, the Diphenol facility will remain shut, with its potential restart contingent on improvements in the economic and geopolitical environment. The company is also analyzing options to repurpose the Diphenol Plant based on evolving economic scenarios.

Fire Incident at Dahej Facility​

Separately, the company reported a fire incident that occurred at the Diphenol Plant on May 23, 2026, around 11:30 p.m. Preliminary findings suggest the fire was caused by the leakage of high temperature thermic fluid, which quickly spread towards the flaking unit of the facility.

The fire was brought under control and completely extinguished by 12:30 a.m. on May 24, 2026. The operations team was able to contain the blaze promptly due to the reduced level of activity related to the ongoing shutdown process. The swift response allowed for immediate evacuation, preventing serious injuries to personnel.

As a precaution, the Vanillin facility, where the manufacturing of Ethyl Vanillin was underway, was immediately shut down.

Estimated Losses and Recovery​

Based on the preliminary assessment following the fire, the incident resulted in the loss of approximately 30 MT of Catechol and damage to the flaker machine, electrical cables, certain measuring instruments, and insulation. The estimated overall loss is INR 2 crore.

The company confirmed that the loss is covered by adequate insurance, and necessary steps have been initiated to file the insurance claim.

Regarding the company's operations, the preliminary safety and operational assessment led the company to plan for the restart of Ethyl Vanillin production, which is expected within the next 48 hours. Camlin Fine Sciences noted that it does not anticipate any impact on the sales of downstream Straight and Aroma products.

For context on the financial contribution of the unit, the company’s turnover for the Diphenol Plant in the Financial Year 2024-25 was Rs. 4,352.47 lakh, representing 5.06% of the company's total turnover. The Diphenol Plant is estimated to have contributed Rs. 4,352.47 lakh in turnover during the last financial year.

The estimated quantum of loss and the nature of the incident are detailed below:

CAMLINFINE Stock Price Movement​

On Friday, Camlin Fine Sciences Limited shares slipped by 1.66% to settle at ₹120.65, marking a weaker close for the specialty chemicals stock. Trading that day saw the equity handle a volume of 543,097 shares, suggesting selling pressure throughout the session.