Strike Ends at Shasun API Plant but Share Price Takes Hit

Operations have restarted at one of Shasun’s API facilities in India following a strike last month.

The strike – which was deemed ‘illegal’ by the firm when it began on June 15 at the Puducherry, India API (active pharmaceutical ingredient) and finished formulation plant – led to the halting of production, including ibuprofen which is manufactured from the site, with operations recommencing only after 12 days.

In a regulatory filing, the company said: “Shasun Pharmaceuticals Ltd has informed BSE [the Bombay Stock Exchange] that an amicable settlement has been reached with the workers at the Company's Pondicherry facility.

“The strike has been called off and operations resumed from yesterday night [June 27].”

The company has not revealed what the twelve days of striking may have cost though a 15-day strike over wage settlements at the same facility in May 2011 cost an estimated INR 50m ($853,000).

However, the company’s share prices reached a 52-week low on June 26 as the firm felt the full effect of the workers’ strike.