Baazar Style Retail Receives ₹23.00 Crore Insurance Settlement for Warehouse Fire Loss
Baazar Style Retail Limited has received ₹23.00 crores as insurance settlement from Bajaj Allianz General Insurance for inventory loss from a May 2024 warehouse fire. The incident at the company's West Bengal facility resulted in total inventory loss of ₹50.85 crores. The company maintained operational continuity by transitioning to a new warehouse facility within a month of the incident.
*this image is generated using AI for illustrative purposes only.
Baazar Style Retail Limited has announced the successful settlement of its insurance claim related to a warehouse fire incident that occurred in May 2024. The company disclosed that Bajaj Allianz General Insurance Co. Limited has settled the claim for ₹23.00 crores under Policy No. OG-24-2495-4008-00000005.
Fire Incident and Initial Impact
The fire incident took place on May 20, 2024, at the company's erstwhile central warehouse located at J.L No. 11, Prospace Industrial Parks, Mouza – Belumilki, Pearapur Gram Panchayat, Sreerampur District, Hooghly – 712 223 West Bengal. The incident resulted in significant inventory loss valued at ₹50.85 crores.
| Parameter: | Details |
|---|---|
| Incident Date: | May 20, 2024 |
| Location: | Hooghly District, West Bengal |
| Total Inventory Loss: | ₹50.85 crores |
| Insurance Claim Amount: | ₹50.85 crores |
| Receivable Recognized (FY 2025): | ₹43.65 crores |
Insurance Settlement Details
Bajaj Allianz General Insurance Co. Limited completed its assessment of the claim and settled the insurance claim for ₹23.00 crores. The company has accepted this settlement amount, which will be received in due course. The settlement represents the final resolution of the insurance claim process that began following the May 2024 incident.
| Insurance Details: | Amount/Information |
|---|---|
| Insurer: | Bajaj Allianz General Insurance Co. Limited |
| Policy Number: | OG-24-2495-4008-00000005 |
| Settlement Amount: | ₹23.00 crores |
| Status: | Accepted by company |
Operational Recovery and Business Continuity
Despite the significant loss, Baazar Style Retail demonstrated resilience in maintaining its operations. The company experienced minimal disruption from the fire accident and successfully shifted its entire operation to a new state-of-the-art warehouse facility. The transition was completed within a month of the incident, ensuring smooth continuity across the supply chain.
The company had previously disclosed this incident in its Red Herring Prospectus/Prospectus, maintaining transparency with stakeholders. During FY 2025, the company had recognized a receivable of ₹43.65 crores against the total inventory loss while the insurance claim process was ongoing.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required under SEBI regulations, including the actual damage amount, insurance settlement details, and steps taken to restore normalcy.
Historical Stock Returns for Baazar Style Retail
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.87% | +1.12% | +20.80% | -10.31% | -9.60% | -25.81% |
How will Baazar Style Retail manage the ₹27.85 crore shortfall between the insurance settlement and actual inventory loss?
What enhanced fire safety and risk management measures has the company implemented at its new warehouse facility?
Will the company seek additional insurance coverage or higher policy limits to better protect against future warehouse incidents?
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