IFGL Refractories Ltd has temporarily halted operations requiring liquified petroleum gas (LPG) at its Kandla manufacturing facility in Gujarat due to disruption in LPG supply amid the ongoing conflict in the Gulf region. According to reports from CNBC TV18, the affected operations are located at its facility in the Kandla Special Economic Zone in Kutch district. The company stated that it is currently unable to quantify the impact of the disruption on its production, operations or financial performance, noting that the situation is expected to affect major players in the refractory industry as well. The disruption has been attributed to two primary factors impacting the industry: the ongoing conflict in the Gulf region creating supply chain challenges, and the Government of India directing all Oil Marketing Companies to prioritize LPG allocation to domestic consumers over industrial users.
The disruption follows a direction from the Government of India to oil marketing companies to prioritise LPG supply for domestic consumers, as reported by CNBC TV18. The management said it is closely monitoring the situation and taking steps to mitigate the impact, which it described as beyond its control. It added that efforts are being made to ensure timely supplies to customers to the extent possible. The company has indicated that it cannot currently measure or quantify the specific impact on production, operations, or financial performance, with management acknowledging that the situation is beyond the company's direct control.
IFGL Refractories Ltd shares ended at ₹145.27 on the NSE, down ₹0.73 or 0.50% on March 20, according to CNBC TV18. The stock decline reflects investor concerns over the operational disruption and its potential impact on the company's performance. The company has committed to providing regular updates as the situation develops and has made the disclosure available on its website at ifglgroup.com through their investor announcement section.
The operational disruption occurs against the backdrop of broader industry challenges, as reported by The Hindu BusinessLine. The Index of Eight Core Industries rose 2.3% in February 2026, with steel and cement leading growth at 7.2% and 9.3% respectively, while crude oil and natural gas production declined by 5.2% and 5.0%. The petroleum refinery products segment declined 1.0% in February 2026, reflecting the supply chain pressures affecting industrial users across multiple sectors. This context underscores the broader impact of Gulf region tensions on India's industrial ecosystem.
Earlier on February 19, the firm had informed that it has commenced a new production line for plastic refractories at its Visakhapatnam manufacturing facility, using technical know-how from its UK-based subsidiary, Sheffield Refractories Ltd, as reported by CNBC TV18. The project involves a capital outlay of about ₹2.10 crore, largely funded through internal accruals, and adds an installed capacity of 10,000 metric tonnes per annum.
