{"id":4402,"date":"2025-08-14T17:34:16","date_gmt":"2025-08-14T17:34:16","guid":{"rendered":"https:\/\/www.theirmindia.org\/blog\/?p=4402"},"modified":"2025-12-04T16:31:29","modified_gmt":"2025-12-04T16:31:29","slug":"systemic-risk-exposure-the-sigachi-tragedy-and-indias-industrial-safety-breakdown","status":"publish","type":"post","link":"https:\/\/www.theirmindia.org\/blog\/systemic-risk-exposure-the-sigachi-tragedy-and-indias-industrial-safety-breakdown\/","title":{"rendered":"Systemic Risk Exposure: The Sigachi Tragedy And India\u2019s Industrial Safety Breakdown"},"content":{"rendered":"<p><a href=\"https:\/\/www.theirmindia.org\/certification-track\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5040\" src=\"https:\/\/www.theirmindia.org\/blog\/wp-content\/uploads\/2025\/11\/blog-image-300x74.png\" alt=\"Getting India Risk Ready\" width=\"668\" height=\"166\" srcset=\"https:\/\/www.theirmindia.org\/blog\/wp-content\/uploads\/2025\/11\/blog-image-300x74.png 300w, https:\/\/www.theirmindia.org\/blog\/wp-content\/uploads\/2025\/11\/blog-image-768x191.png 768w, https:\/\/www.theirmindia.org\/blog\/wp-content\/uploads\/2025\/11\/blog-image.png 1024w\" sizes=\"auto, (max-width: 668px) 100vw, 668px\" \/><\/a><\/p>\n<p><b>Introduction\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Sigachi Pharmaceutical Industries Manufacturing unit, located in Pashamylaram Industrial Area, is a major producer of Microcrystalline Cellulose (MCC). The MCC is used as a binder in tablets in various pharmaceutical industries, which is essential for producing a cohesive tablet during compression. On the morning of June 30<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> at 09.10 am, a major explosion occurred at one of the manufacturing units, flattening a three-story building. The government confirmed 44 deaths and 34 workers sustained injuries. This accident again brought <\/span><b>industrial risks<\/b><span style=\"font-weight: 400;\"> and\u00a0 safety into the spotlight, where many managements are still compromising on the safety standards, putting the workers&#8217; lives at risk. This article delves into the importance of safety and security audits in industries and <\/span><b>disaster risk management strategies<\/b><span style=\"font-weight: 400;\">\u00a0 to prevent such incidents\u00a0 in the future.<\/span><\/p>\n<h2><b>An ISO Certified Company<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Sigachi Industries has been certified with <\/span><a href=\"https:\/\/www.thehindu.com\/news\/national\/telangana\/first-responders-take-charge-as-emergency-response-remains-slack\/article69756465.ece\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">ISO 45001:2018<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/sigachi.com\/about-us\/the-company\/#:~:text=Next-,1989,Chambers%20of%20Commerce%20and%20Industries\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">ISO 9001:2015<\/span><\/a><span style=\"font-weight: 400;\"> and Sigachi Industries has been <\/span><a href=\"https:\/\/sigachi.com\/about-us\/the-company\/#:~:text=Next-,1989,Chambers%20of%20Commerce%20and%20Industries\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">accredited with prestigious certifications<\/span><\/a><span style=\"font-weight: 400;\"> pertaining to medicine manufacturing and exporting to various countries. The ISO 45001:2018 is an international standard that deals with the Occupational Health and Safety Management System (OHSMS). The OHSMS mandates the organisation to sustain employee safety, reduce workplace risks, and create a healthier environment for the workers. The ISO 9001:2015 deals with the Quality Management systems, and it emphasizes a proactive organization-wide approach to managing the risks that emerge in conducting its operations.\u00a0<\/span><\/p>\n<h2><b>Examining Lapses in Enforcing Workplace Safety Protocols\u00a0\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Sigachi <\/span><b>industrial accident<\/b><span style=\"font-weight: 400;\"> has brought many instances of negligence to light through media reports. When the rescue teams arrived at Sigachi Industries, they could not find the display board, which is mandatory to indicate the kind of hazardous chemicals being used in the company&#8217;s operations. The above guidelines are made mandatory by the <\/span><a href=\"https:\/\/cpcb.nic.in\/openpdffile.php?id=TmV3c0ZpbGVzLzExMV8xNzM3MDA1ODU1X21lZGlhcGhvdG8xMjUwMy5wZGY=\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Central Pollution Control Board of India<\/span><\/a><span style=\"font-weight: 400;\"> for the pharmaceutical industries to display at the main factory gate. In case of any adverse events, the rescue team will be fully prepared to contain the situation. The <\/span><a href=\"https:\/\/economictimes.indiatimes.com\/news\/india\/telangana-plant-explosion-sigachi-used-old-machinery-despite-requests-to-change-says-fir\/articleshow\/122199903.cms?from=mdr\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">First Information Report<\/span><\/a><span style=\"font-weight: 400;\"> (FIR) stated that despite repeated warnings and requests by the Sigachi employees to replace the outdated machinery, the management decided to run the factory without replacing the machines. The police suspect that this also could have led to the blast. <\/span><a href=\"https:\/\/timesofindia.indiatimes.com\/city\/hyderabad\/safety-violations-at-sigachi-industries-exposed-lack-of-fire-systems-and-emergency-preparedness-ignored-before-deadly-explosion\/articleshow\/122308801.cms\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">The Times of India (TOI) news report<\/span><\/a><span style=\"font-weight: 400;\"> highlighted\u00a0 that a December 2024 factory inspection report revealed the absence of an inert gas suppression system in panel boards, battery rooms, and UPS setups. The manufacturing unit did not have adequate fire extinguishing appliances, fire-resistant dampers, and heat or smoke detectors inside the factory premises. There was\u00a0 no structured emergency preparedness plan, like a lack of fire exits in factory buildings, and workers were not properly trained to use firefighting equipment. The company did not provide protective gear, such as shoes, gloves, or goggles, to workers who were working in a vulnerable environment. Additionally, the factory buildings have loosely laid electrical wiring, no rubber mats or insulating stands at the panels. Despite finding so many deficiencies in the factory units, no necessary action was taken to rectify them. The management decided to run the manufacturing unit without understanding the level of risk it posed to the workers and to the factory environment, ultimately ending with the biggest industrial disaster, killing 44 employees and injuring many others.<\/span><\/p>\n<h2><b>ISO Certifications\u00a0 Under Scrutiny<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Sigachi Industries is an ISO 45001:2018 certified company. To obtain this certificate, the industry must complete internal and external audits, which involve various <\/span><a href=\"https:\/\/isoindia.org\/iso_ISO_45001:2018.php\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">stages of audit<\/span><\/a><span style=\"font-weight: 400;\"> with a comprehensive on-site evaluation. To retain this ISO certification, the industry must complete an annual audit. For recertification, the industry must undergo a series of internal and external audits every three years. Despite having a rigorous evaluation mechanism, how did Sigachi Industries have a lax implementation of a safe working environment for its workers?\u00a0<\/span><\/p>\n<h2><b>Risk management solutions to prevent industrial disasters <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">India is an emerging global superpower. The pharmaceutical industry is one of the key sectors where India showcases its manufacturing power to the world. Indian Government initiatives like the Make in India initiative tries to attract foreign investment and transform India into a manufacturing hub of the world.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To achieve this, we need to have\u00a0 robust <\/span><a href=\"https:\/\/www.theirmindia.org\/global-qualifications\/what-is-erm\" target=\"_blank\" rel=\"noopener\"><b>Enterprise Risk Management<\/b><\/a><span style=\"font-weight: 400;\"> that works on a proactive approach to identify and assess the risk using quantitative and qualitative metrics, to develop an appropriate response to reduce the risks that pose a deadly threat to industrial safety.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government must initiate a special probe to investigate the lapses found at Sigachi Industry to prevent future accidents. It must penalize the industries that are not following the prescribed safety standards, and non-compliance should be dealt with criminal liability and\u00a0 hefty fines.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All industries must embed an <\/span><b>operational risk management<\/b> <span style=\"font-weight: 400;\">framework<\/span><span style=\"font-weight: 400;\"> into their day-to-day processes. The industries can embed ISO 31000 guidelines, which deal with managing risk within the organization. All industries must conduct scenario analysis or simulation training to develop a tactical plan to handle the emergency.All industries must devise an annual emergency preparedness plan to handle any emergency that may arise in the future.\u00a0 <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0&#8211; This involves formation of an emergency planning team with designated personnel for critical incident management<br \/>\n&#8211; mapping the location of hazardous materials<br \/>\n&#8211; maintaining up-to-date site maps<br \/>\n&#8211; establishing communication protocols<br \/>\n&#8211; following an emergency checklist with procedures for every type of emergency<br \/>\n&#8211; including mechanisms for debriefing and business continuity post incidents<br \/>\n&#8211; reviewing and updating the plan after every incident by incorporating the lessons learned, changes to operations and new risks, if any.<br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Frequent industrial accidents across the country will undermine investors\u2019 confidence and may depict India as an unstable environment for global investment. The government should bring all industries under the Indian Occupational Safety and Health Information Network (INDOSHNET) for periodic safety audits, and the audit details should be maintained at a centralized database at the national level.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The integration of advanced technological systems within industrial operations and the use of\u00a0 <\/span><a href=\"https:\/\/www.theirmindia.org\/level1\" target=\"_blank\" rel=\"noopener\"><b>risk mitigation strategies<\/b><\/a><span style=\"font-weight: 400;\"> are crucial for managing <\/span><span style=\"font-weight: 400;\">operational risk and<\/span> <span style=\"font-weight: 400;\">establishing safe work environments.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Sustainable and genuine economic progress can be realized only by adopting proactive strategies that uphold <\/span><span style=\"font-weight: 400;\">operational risk<\/span> <span style=\"font-weight: 400;\">management <\/span><span style=\"font-weight: 400;\">excellence and prioritize human well-being.<\/span><\/p>\n<p><strong><em>The author of this blog is Naveen.N, an Assistant Professor and ERM professional, currently teaching at the Department of Criminology and Criminal Justice Science, Agurchand Manmull Jain College, Chennai.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction\u00a0 The Sigachi Pharmaceutical Industries Manufacturing unit, located in Pashamylaram Industrial Area, is a major producer of Microcrystalline Cellulose (MCC). The MCC is used as a binder in tablets in various pharmaceutical industries, which is essential for producing a cohesive tablet during compression. On the morning of June 30th at 09.10 am, a major explosion occurred at one of the manufacturing units, flattening a three-story building. The government confirmed 44 deaths and 34 workers sustained injuries. This accident again brought industrial risks and\u00a0 safety into the spotlight, where many managements are still compromising on the safety standards, putting the workers&#8217; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[56],"tags":[108,107],"class_list":["post-4402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-risk-360","tag-disaster-risk-management","tag-industrial-risk"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Industrial Risk &amp; Safety Failures - Lessons from the Sigachi Tragedy | IRM India<\/title>\n<meta name=\"description\" content=\"Uncover how the Sigachi pharma disaster revealed systemic industrial risk in India. 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