Rex Pipes estimates Rs 2.19 crore fire loss, files claim

Rex Pipes and Cables Industries Limited estimated damage from its October 3, 2026 factory fire at approximately Rs 2.19 crore, comprising Rs 93.59567 lakh of company-owned assets and Rs 1.2572 crore of customer stock or assets held in trust. Rex Pipes filed an insurance claim and said production resumed on the next working day.

What was the estimated loss from the Rex Pipes factory fire?

The estimated total loss from the October 3, 2026 fire was approximately Rs 2.19 crore. Rex Pipes said the incident damaged certain factory property, machinery, stock and other assets at its factory in Palsana, District Sikar, Rajasthan.

Rex Pipes split the estimate between its own assets and assets or stock held for customers. The company put damage to company-owned assets at Rs 93.59567 lakh and damage to trusted customer assets or stock at Rs 1.2572 crore, meaning the customer-held category was larger.

The customer-held category was Rs 32.12433 lakh higher than the company-owned asset category, based on Rex Pipes' disclosed estimates. The filing does not break the company-owned amount into machinery, property, stock or other assets, despite listing all of those categories as damaged in the October 3 incident.

When and where did the Rex Pipes fire occur?

The fire occurred on October 3, 2026 at the Rex Pipes factory at E-128-129, RIICO Industrial Growth Center, Phase-II, Palsana, District Sikar, Rajasthan. The update refers to an earlier company intimation issued on October 3, 2026 regarding the same event.

Rex Pipes said there was no human loss or injury in the October 3 fire. Its damage disclosure covered factory property, machinery, stock and other assets, but it did not identify the specific machines, products, stock lines or physical areas affected at the Palsana facility.

The Rs 2.19 crore figure is an estimate of loss or damage, not an insurance settlement. Rex Pipes said it had asked its insurer to depute a surveyor or loss assessor for inspection and assessment, leaving the final assessed amount unresolved.

How did Rex Pipes divide company and customer losses?

Rex Pipes attributed Rs 93.59567 lakh of estimated damage to its owned assets and Rs 1.2572 crore to customer assets or stock held in trust. The two categories together form the approximately Rs 2.19 crore total reported for the October 3, 2026 factory fire.

The company-owned portion was lower than the customer-held portion by Rs 32.12433 lakh. This comparison is calculated from the two amounts disclosed by Rex Pipes and shows that customer assets or stock represented the larger identified category of physical damage.

The allocation distinguishes property belonging to Rex Pipes from stock or assets that it held in trust for customers. However, the filing does not state whether the customer stock will be replaced, returned, settled separately or recovered through insurance, and it does not disclose any disruption-related cost beyond the physical-damage estimate.

Has Rex Pipes resumed factory production after the fire?

Rex Pipes said operations and production at the factory resumed from the next working day after the October 3, 2026 incident and were in order. The company therefore reported a restart rather than an extended shutdown at the Palsana facility.

The operational update does not quantify production before or after the fire. Rex Pipes did not disclose capacity utilisation, the number of affected machines, repair expenditure, order delays, alternative production arrangements or the volume of stock damaged in the Rs 2.19 crore estimate.

Rex Pipes also did not quantify any effect on revenue, costs or profit from the October 3 fire. The filing separately reports an estimated physical loss and a next-working-day production restart, without providing an earnings forecast or a financial-period impact.

What insurance claim has Rex Pipes filed?

Rex Pipes said it notified United India Insurance Company Limited and filed a suitable claim for the October 3 fire-related loss. The company identified its cover as Policy No. 1403011125P119801630 and requested the insurer to appoint a surveyor or loss assessor.

The filing does not establish the amount Rex Pipes will ultimately receive under Policy No. 1403011125P119801630. It discloses an estimated loss of approximately Rs 2.19 crore and a submitted claim, but does not provide policy limits, deductibles, exclusions, survey findings, claim approval or an expected settlement date.

Rex Pipes said its Board took note of management's update on the fire incident and the steps undertaken. The disclosed steps are the notification to United India Insurance Company Limited, the request for a surveyor or loss assessor, and the filing of a claim for the assessed damage.

Conclusion

Rex Pipes has separated the October 3, 2026 fire damage between Rs 93.59567 lakh of company-owned assets and Rs 1.2572 crore of customer assets or stock held in trust. The larger customer-held component, together with the reported next-working-day resumption of production and absence of injuries, defines the scope of the update.

The next disclosed matter to watch is the insurer's assessment under Policy No. 1403011125P119801630. Rex Pipes has requested a surveyor or loss assessor and filed a claim with United India Insurance Company Limited, while the settlement amount, timing and any remaining financial effect have not been disclosed.