Subros slipped over 5.5% to an intra day low at Rs.84.50 and it remains firmly in the red.

The company supplies air conditioners to Maruti and its factory at Manesar suffered a huge fire, destroying its building, stock, plant and machinery. The company has insurance but it could take a while before the company will be able to start production.

Following this fire at Subros, Maruti has halted production at its Gurgaon and Manesar plants, starting second half of 30th May and it could suffer a production loss of around 2750 cars per day. This is not expected to affect Maruti in the near term much as companies of Maruti’s size usually have a stock of one month; it is only if it extends beyond a month that production could get affected.