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Emami tumbles after AMRI Hospital fire incident

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Capital Market Mumbai

Meanwhile, the BSE Sensex was down 12.09 points, or 0.07%, to 16,201.37.

On BSE, 4.46 lakh shares were traded in the counter as against an average daily volume of 9178 shares in the past one quarter.

The stock hit a high of Rs 382.50 and a low of Rs 328.10 so far during the day. The stock had hit a record high of Rs 545 on 12 July 2011. The stock had hit a 52-week low of Rs 313.20 on 10 December 2010.

The stock had underperformed the market over the past one month until 9 December 2011, sliding 8.48% compared with the Sensex's 6.62% decline. The scrip had also underperformed the market in past one quarter, falling 14.38% as against 3.87% fall in the Sensex.

 

The mid-cap FMCG company has an equity capital of Rs 15.13 crore. Face value per share is Re 1.

AMRI Hospital is jointly promoted by Emami Group, which holds 66% stake, and Kolkata-based real-estate company Shrachi Group, which holds 32%. The Kolkata State Government holds a 2% stake in the hospital.

Around 90 people, most of them patients in sleep, were on Friday (9 December 2011) choked to death in the fire suspected to have been caused by inflammable material stored in the basement of AMRI Hospital.

Mr R.S. Agarwal, chairman of Emami Group, and a director of AMRI was arrested late on Friday night. Six other directors of AMRI - Mr S.K. Todi and his son Mr Ravi Todi of the Shrachi Group; Mr R.S. Goenka and his son Mr Manish Goenka, and Mr Prashant Goenka (all directors of Emami); and Mr Dayanand Agarwal (executive director, AMRI) - were brought to the Alipore Chief Judicial Magistrate's court under security on Saturday (10 December 2011).

All accused were charged with culpable homicide not amounting to murder and negligence of duty.

As per reports, the AMRI management will soon set up a five-member committee to probe into the matter. The West Bengal Government has come up with a five-member fire-audit committee to review fire-safety norms across buildings, high-rises and healthcare institutions in the city. The committee will inspect buildings across the city every week and report to the Chief Minister, Ms Mamata Banerjee. Action will be taken against the offenders based on the findings of the committee, reports added.

Emami's net profit declined 11.7% to Rs 50.01 crore on 13.2% growth in net sales to Rs 296.90 crore in Q2 September 2011 over Q2 September 2010.

Emami is engaged in developing and manufacturing personal, beauty and health care products through an effective leverage of Ayurveda.

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First Published: Dec 12 2012 | 9:32 AM IST

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