LPG Crisis: Stocks of Appliance Firms, Including TTK Prestige, Surge Following IRCTC's Induction Cooker Directive

Market Update: Electric Kitchen Appliances See Surge Amid LPG Uncertainty

On March 11, shares of TTK Prestige, Jaipan Industries, Butterfly Gandhimathi, and Stove Kraft surged by 8%, 2.5%, and 2%, respectively, while Borosil shares rose by 3%. This increase in share prices is attributed to growing uncertainty over LPG (Liquefied Petroleum Gas) availability.

IRCTC (Indian Railway Catering and Tourism Corporation) has directed static catering units at railway stations to shift to alternative cooking methods such as microwaves and induction stoves amid ongoing LPG supply concerns. Caterers have also been asked to maintain adequate stocks of Ready-to-Eat (RTE) items and regular packed food.

India's LPG Consumption India consumes approximately 31.3 million tonnes of LPG annually, with 87% used in household kitchens and the remaining 13% in commercial establishments. Importing countries such as Saudi Arabia supply 85-90% of India's LPG requirements, which are currently at risk due to the Strait of Hormuz being shut following the US and Israel's attack on Iran.

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Industry Response Manish Khosla, director of Khosla Electronics in Kolkata, reported a 60% surge in sales on Saturday evening, with sales continuing to rise on Sunday. The company typically sells 40-45 induction cookers daily but has seen a significant increase to 120-130 units daily.

Government Response On March 10, a government source informed Moneycontrol that LPG production has been increased by 10%, and no LPG distributor is facing a shortage of supplies.