Grasim Industries Ltd on Monday, September 25, announced that a section of its Century Rayon plant at Shahad in Maharashtra has been closed temporarily after a government order.

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The order of the Department of Industrial Safety and Health, Kalyan, under the Factories Act, 1948, came after a fatal explosion at the Century Rayon plant on Saturday, September 23, Grasim Industries said in a filing to the stock exchanges.

In the explosion, two unnamed persons died while six others were injured.

“We are in the receipt of the Order from Department of Industrial Safety & Health, Kalyan (DISH) under the Factories Act, 1948 dated 23rd September 2023 and in accordance with the Order, Carbon DiSulphide (CS2) refining section of the plant has been closed temporarily,” the Aditya Birla group’s flagship company said in a BSE filing.

The unit will be operational after complying with the condition of the government order, the company mentioned.

It also stated that the company has initiated the necessary steps to comply with the conditions stipulated in the order. The temporary closure is unlikely to have a material impact on the company’s profitability, Grasim clarified.

The company on Saturday had informed bourses that a tanker of an external party exploded outside the Shahad plant during an inspection for material loading for a customer.

Two persons, yet to be accounted for, were killed in the accident while causing injuries to two others. Reports, however, claimed that six persons were injured in the incident.

The company had stated that it launched an internal investigation to ascertain the cause of the incident.

Grasim Industries shares were trading higher by 0.35 percent at Rs 1917.90 apiece on BSE at 10.26 AM.

Diversified Grasim Industries is the flagship firm of the Aditya Birla Group. It is a leading global producer of viscose, diversified chemicals, linen yarn and fabrics.