Gopal Snacks Limited has issued a business update addressing the impact of government restrictions on commercial gas usage, confirming that its manufacturing operations continue without disruption through strategic use of alternative fuel sources.

Government Gas Usage Restrictions

The Government of India has issued a notification restricting gas usage for commercial purposes due to tensions in the Middle East, prioritizing gas supply for domestic use. This regulatory change has prompted companies across various sectors to seek alternative fuel solutions for their manufacturing operations.

Operational Continuity Strategy

Gopal Snacks has demonstrated proactive planning by already implementing bio coal at its key manufacturing facilities. The company's strategic approach to fuel diversification has enabled seamless operations despite the government restrictions.

Strategic Fuel Diversification

The company has emphasized its focus on strategic steps to utilize alternative fuel sources, making operations more cost-effective while reducing dependency on single fuel sources. This approach positions Gopal Snacks to overcome unforeseen challenges and maintain operational resilience.

Manufacturing Excellence

Both the Modasa and Nagpur plants, which are crucial to the company's manufacturing operations, are running normally and remain well-equipped to meet current and future production demands. The company has assured stakeholders that there will be no delays in product deliveries to customers, demonstrating effective supply chain management during regulatory transitions.

Gopal Snacks Limited has received a significant interim insurance payment of Rs.174.72 million related to the fire incident that occurred at its production facility in December 2024. The company informed stock exchanges about this development as part of its ongoing disclosure obligations under SEBI regulations.

Insurance Claim Progress

The snacks manufacturer disclosed key details about its insurance recovery process following the December 11, 2024 fire incident at its Rajkot facility:

The company emphasized that this payment forms part of the ongoing restatement process for fire-affected assets. Additional insurance claims are expected to be received as and when the complete restatement process gets finalized.

Fire Incident Background

The fire incident occurred on December 11, 2024, at one of the company's production units situated at Plot No. G2322-23-24, GIDC Metoda, Tal. Lodhika, Rajkot, Gujarat. The facility represents one of the company's key manufacturing locations for its snacks and namkeen products.

Financial Impact and Recovery

The insurance recovery process demonstrates the company's risk management approach and adequate insurance coverage for its production assets. With Rs.374.64 million already received in the current financial year against fire-affected assets, the company appears to be making steady progress in recovering losses from the incident.

Regulatory Compliance

Gopal Snacks made this disclosure pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has been providing regular updates to stock exchanges regarding developments related to the fire incident and subsequent insurance claim process.

The disclosure was signed by CS Mayur Gangani, Head — Legal & Compliance cum Company Secretary, maintaining the company's commitment to transparent communication with stakeholders regarding material developments.