Pioneer Dist on 5% LC

Pioneer Distilleries has been breaching the lower circuit consistently since yesterday and today too, it breached the LC it at Rs.116.40, down 5%.

The company, a subsidiary of United Spirits announced yesterday that the manufacturing activities of the 100 Kilo Liters Per Day (KLPD) Molasses Based Extra Neutral Alcohol (MENA) plant(s) at its factory at Nanded, Maharashtra, has been stopped with effect from February 01, 2016.

This is on account of shortage in water availability due to less rains during monsoon season in the region. Subsequently, the Company has explored various options of procuring water from various other sources for operating the MENA plant which have not been fruitful. Now, it seems the company does not have an option other than to stop the operations of the said MENA plant for the aforesaid reason, which was noted by the Board of the Company on March 03, 2016.

Revenue of Rs.69.25 crore, constituting 46 % of turnover of the company was contributed by the aforesaid MENA plant during the financial year 2014-15.