Prasol Chemicals’ Mahad Shutdown Delayed Plant Turnaround

Prasol Chemicals Limited’s Mahad plant turnaround was delayed by a fatal gas leak in October 2023 and a Maharashtra Pollution Control Board closure from October 27, 2023 to May 3, 2024. Mahad capacity utilisation reached 44.09% in Fiscal 2026, but remained below Khopoli’s 80.29%, while Mahad reported a loss before exceptional items and tax of Rs 12.172 crore.

How did the 2023 gas leak delay Prasol Chemicals’ Mahad turnaround?

Prasol Chemicals’ Mahad turnaround was delayed because the Maharashtra Pollution Control Board, or MPCB, ordered the facility closed after a gas leak on October 5, 2023. The leak released hydrogen sulphide, or H2S, and sulphur dioxide, or SO2, during a manufacturing process, resulting in one death and four hospitalisations. MPCB issued closure directions on October 27, 2023 and approved the plant’s resumption on May 3, 2024, subject to specified conditions.

The closure interrupted a plant established in 2020 that was still being stabilised for yield and quality. Prasol Chemicals said COVID-related disruptions and global agrochemical-market destocking had also reduced demand after Mahad’s launch. The company attributed Mahad’s low capacity utilisation and losses in Fiscal 2024 and Fiscal 2025 to the shutdown alongside those greenfield-facility and market conditions.

Prasol Chemicals said it implemented gas-scrubbing systems, H2S and chlorine detection and monitoring systems, and submitted a bank guarantee after the incident. The May 2024 restart approval was conditional on fulfilment of MPCB requirements. The company also said the shutdown reduced revenue from product sales in Fiscal 2024 compared with Fiscal 2023.

Did Mahad utilisation recover after Prasol Chemicals’ shutdown?

Mahad utilisation recovered to 44.09% in Fiscal 2026 from 25.18% in Fiscal 2025 and 12.72% in Fiscal 2024, although it remained below Khopoli’s 80.29% in Fiscal 2026. Capacity utilisation is actual production divided by aggregate installed capacity at the end of the relevant financial year. Prasol Chemicals bases annual installed capacity on 324 working days, 27 working days per month, three daily shifts and eight hours per shift.

Mahad’s actual production increased by 6,848 metric tonnes, or MT, between Fiscal 2024 and Fiscal 2026, while installed capacity increased by 4,860 MT. The facility therefore lifted output while capacity was also expanding. In Fiscal 2026, Mahad had 55.91% of stated annual capacity unutilised, compared with 19.71% at Khopoli.

Mahad remained loss-making despite the production increase. Loss before exceptional items and tax narrowed from Rs 22.773 crore in Fiscal 2024 to Rs 15.766 crore in Fiscal 2025 and Rs 12.172 crore in Fiscal 2026. The reduction across the three reported years accompanied higher output and utilisation, but the Fiscal 2026 result remained a loss.

What does Prasol Chemicals’ incident record show about operating risk?

Prasol Chemicals’ disclosures show that safety and environmental incidents have resulted in fatalities, regulatory notices and closures at both Maharashtra manufacturing sites. MPCB directed the Khopoli facility to close on February 27, 2018 after sewage-pipe samples showed chemicals above permissible limits under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. The shutdown lasted about 55 days, and MPCB permitted a restart on April 23, 2018 after reviewing compliance.

At Mahad, a November 14, 2022 incident during the transfer of residual material from a caustic-lye tanker caused two workers to lose consciousness and one worker to die. MPCB issued a show-cause notice on November 16, 2022 and, on February 16, 2023, directed that manufacturing could begin only after installation and commissioning of an odour-control mechanism and a trial run satisfactory to local residents. Prasol Chemicals said there was no major operational impact and no subsequent correspondence.

The company also disclosed a July 19, 2025 fire at Mahad, after which MPCB issued a show-cause notice on July 25, 2025. No injury was reported, but MPCB cited alleged non-compliance concerning dedicated storage for effluent treatment plant, or ETP, sludge and disposal details for spent hydrochloric acid. Prasol Chemicals replied on August 2, 2025 and said it had proper storage facilities and had constructed an approach road to the hazardous-waste storage area.

At Khopoli, two contract workers died on September 21, 2020 after residual chemical splashed during dismantling of an acetone-recovery-plant reboiler. A separate fire on February 17, 2021 during dismantling work resulted in a fine of rupees 25,000 from the Deputy Director of Industrial Safety and Health, Mumbai. Prasol Chemicals said it responded with worker training and a work-permit system, and reported no major operational impact from the 2021 fire.

What must hold for Mahad’s recovery to continue?

Mahad’s recovery depends on safe operations, regulatory compliance, demand and reliable access to manufacturing inputs. Prasol Chemicals identified raw materials, power, water, machinery performance and production planning as factors affecting capacity utilisation. It also said maintenance, inspections, testing and capacity expansion can require shutdowns.

Prasol Chemicals’ manufacturing concentration increases the relevance of any Maharashtra disruption because both manufacturing facilities and its research and development centre are located in the state. The company said natural or man-made disasters, workforce disruption, regulatory delays, fire, machinery failure, and inadequate power or water access could reduce its ability to manufacture products and meet contractual conditions.

MPCB issued another show-cause notice to Prasol Chemicals on March 27, 2025, alleging hazardous waste stored outside a dedicated area, improper coal-ash storage, missing bank-guarantee details and an ETP aeration unit and clarifier not in operation. Prasol Chemicals replied on March 31, 2025, saying it had relocated hazardous waste and begun proper coal-ash storage. The company reported no major operational impact from the matter.

The Deputy Director of Industrial Safety and Health, Raigad District, also directed a safety audit through a September 22, 2025 notice related to alleged unsafe work involving a P2S5 drum flaker and conveyor system. Prasol Chemicals completed the audit on October 4, 2025 and submitted the report on November 4, 2025. It said it had undertaken risk assessment and implemented engineering controls, administrative measures, personal protective equipment, maintenance schedules and emergency-response procedures.

Conclusion

Prasol Chemicals’ Mahad shutdown was a direct operational setback because the October 2023 gas leak caused a fatality, regulatory closure and a stated reduction in Fiscal 2024 product-sale revenue compared with Fiscal 2023. Production subsequently reached 8,756 MT and utilisation rose to 44.09% in Fiscal 2026, while the pre-tax loss narrowed to Rs 12.172 crore. Mahad had nonetheless not reached Khopoli’s 80.29% utilisation level.

The next measure is whether Mahad can maintain or improve Fiscal 2026 utilisation while its installed capacity rises from 15,000 MT in Fiscal 2024 to 19,860 MT in Fiscal 2026. Prasol Chemicals has disclosed gas scrubbing, detection systems, safety audits and planned implementation of Responsible Care principles, a chemical-industry initiative on safety, sustainability and environmental performance. Outstanding regulatory compliance matters and the absence of further disclosed correspondence on some notices remain relevant to that outcome.