Pioneer Distilleries down 5%; shares hit lower circuit

Shares of Pioneer Distilleries fell by nearly 5 per cent today after the company said it will close down its Nanded plant in Maharashtra due to water shortage.
The stock went down by 4.98 per cent to settle at Rs 116.40 -- its lower circuit -- on BSE.
At NSE, shares of the company slipped 4.99 per cent to Rs 117.85.
Manufacturing activities at its Balapur, Nanded unit producing Molasses Based Extra Neutral Alcohol (MENA) has been stopped from February 1, 2016 on account of shortage in water availability due to less rains during monsoon season in the region, Pioneer Distilleries Ltd had informed BSE yesterday.

"Subsequently, the company has explored various options of procuring water from various other sources for operating the MENA plant which have not been fruitful," Pioneer Distilleries said.
It further said: "Now, it seems the company does not have an option other than to stop the operations of the said MENA plant for the aforesaid reason, which was noted by the Board of the company on March 3, 2016".