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HomeMarket NewsStocks NewsRedington's Gulf operations hit by West Asia tension; employee safety top priority
Employee safety at Redington Gulf FZE remains a priority, with enhanced safety protocols and business continuity plans implemented across affected locations, the company said. Shares of Redington Ltd ended at ₹232.90, down by ₹1.60, or 0.68%, on the BSE today, March 16.
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Technology solutions provider Redington Ltd on Monday (March 16) said the operations of its Gulf subsidiary, Redington Gulf FZE, have been restricted due to the ongoing geopolitical tensions in the region. The disruptions have led to rerouted shipments, closure of major ports and airspace, and increased transit times.
"The company has been informed by its step-down subsidiary, Redington Gulf FZE, that due to the ongoing geo-political tensions, its operations in the Gulf region are pursued in a restricted manner...," according to a stock exchange filing.
The company also faces higher working capital requirements as customer payment timelines are delayed, alongside rising freight, insurance, and logistics costs. War risk coverage for businesses in the Gulf has been revoked by insurers, prompting Redington to evaluate alternative arrangements.
Employee safety remains a priority, with enhanced safety protocols and business continuity plans implemented across affected locations. Operations continue under compliance with international regulations, trade restrictions, and sanctions.
"The safety and well-being of Redington’s employees remain a top priority. The Company has implemented enhanced safety protocols and business continuity plans across affected locations and continues to operate in full compliance with all applicable international regulations, trade restrictions, and sanctions," it said.
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Redington said it is not currently possible to quantify the financial impact of the situation, as it depends on the duration and intensity of the geopolitical tensions. Senior management is closely monitoring developments and will take necessary actions. Material updates will be shared with stock exchanges as the situation evolves.
Shares of Redington Ltd ended at ₹232.90, down by ₹1.60, or 0.68%, on the BSE today, March 16.
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(Edited by : Shoma Bhattacharjee)
