Shares of TTK Prestige, Stovecraft, and Gandhi Mathi Appliances (Butterfly Gandhimathi) surged by as much as 15% on Wednesday, March 11, driven by the critical LPG supply shortage affecting India's restaurant industry. According to Upstox, TTK Prestige shares rallied as much as 14.8% to hit a high of ₹539.70 apiece on the NSE, while Stove Kraft was trading over 7% higher at ₹525. The supply disruption has prompted many consumers to look for alternative cooking solutions that reduce dependence on LPG, with induction cooktops and pressure cookers seeing a spike in demand as consumers prepare for uncertain gas availability. This surge reflects the market's recognition of the severity of the crisis and the immediate need for alternative cooking solutions as commercial establishments face unprecedented operational challenges.
The US-Israel-Iran conflict has triggered a severe LPG supply crisis for India's restaurant industry, with commercial establishments experiencing unprecedented disruptions. According to The Times of India, around 80 percent of restaurants in India depend on LPG cylinders as their primary cooking fuel, making them particularly vulnerable to supply shortages. In Mumbai alone, 20 percent of hotel operations have been closed due to this shortage, while others have reduced their operational hours. The Bangalore Hotels Association warned that hotel and restaurant operations across the city could be affected from March 10, stating that since gas supply has stopped, hotels will be closed from that day. Tamil Nadu restaurant associations have warned of possible shutdowns in the coming days if the shortage is not addressed. The crisis has forced restaurants to take drastic measures, with some deleting slow-cooked dishes from their menus and cutting down menus to items requiring less gas usage. In Chennai, several small eateries have shut shops, as reported by Ravi Muthukrishnan, chairman of Vasanta Bhavan Hotels and president of Channel Hotels Association.
The LPG shortage has spread across multiple cities beyond Mumbai, creating widespread operational disruptions for the hospitality sector. Pradeep Shetty, Vice President of the Federation of Hotel and Restaurant Association of India (FHRAI), confirmed that similar disruptions are reported from Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana, and Andhra Pradesh. According to Upstox, the hoteliers' body FHRAI on Tuesday said a large number of hotels and eateries in Mumbai will have to shut operations in the next two days if the situation is not resolved. The crisis has forced restaurants to take drastic measures, with some deleting slow-cooked dishes from their menus and cutting down menus to items requiring less gas usage. In Chennai, several small eateries have shut shops, as reported by Ravi Muthukrishnan, chairman of Vasanta Bhavan Hotels and president of Channel Hotels Association.
The recent LPG price hike has tripled sales of induction cookers in Kolkata, with retailers reporting panic buying as consumers prepare for potential supply shortages. According to News18, retailers noticed the surge starting Saturday, after the Centre attributed the price rise to escalating global energy costs linked to the West Asia conflict. Manish Khosla, director of Khosla Electronics, reported a 60% spurt in sales on Saturday and Sunday, with sales jumping from 40-45 induction cookers across 86 outlets to 120-130 per day. Abhishek Jain of Sales Emporium confirmed over 30% spurt in induction cooker sales, stating that once current stock is exhausted, they will immediately replenish it. The surge represents a significant shift from kitchen upgrades to survival necessities, with consumers purchasing multiple units for their families.
The demand surge has extended beyond online channels to physical retail outlets, with significant increases reported across major markets. Bhavik Tiwary, a retailer on Ezra Street, reported a spurt of over 20% on Friday and Saturday, with retailers noting that if the situation doesn't improve, sales might surge further. According to News18, Saqlain Ali of Fairway Traders in Chandni Market reported surge in sales in the past few days since the geopolitical crisis in West Asia. The increase has not been restricted to induction cooktops alone, with electric kettles, cookers, and hot plates witnessing an uptick in sales as consumers prepare alternative cooking options. Pulkit Baid, director of Great Eastern Retail, confirmed the sale of electric kitchen appliances is not restricted to induction cookers, with many buying new microwave ovens to keep alternative cooking options ready.
In response to the supply crisis, the government has implemented priority measures for essential cooking fuel while facing unprecedented demand pressure. According to The Times of India, the government has invoked provisions under the Essential Commodities Act, 1955, which allows the Centre to regulate the production, supply, and distribution of LPG to ensure smooth and uninterrupted supplies. The government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top. Refineries have reportedly been directed to increase LPG production by diverting petrochemical feedstock meant for other purposes, while the waiting period for booking LPG cylinder refills has been extended. However, restaurant associations have urged authorities to take measures against hoarding and informal sale of LPG cylinders, with the Federation of Hotel and Restaurant Associations of India (FHRAI) flagging widespread disruption at the ground level in commercial LPG supply. Jaison Chacko, FHRAI secretary general, has requested the government to issue a formal clarification confirming no restrictions apply to hospitality and food service sectors and mandate oil marketing companies to ensure seamless distribution of commercial cylinders.
The LPG shortage threatens India's restaurant industry, which contributes more than ₹5 trillion in revenue annually and employs over 8 million people. As per The Times of India, the restaurant industry plays a significant role in urban food consumption, serving corporate employees, students, migrant workers, and medical professionals. Delhi-based restaurateur Amit Bagga warns that panic around the issue could worsen the situation, stating that most restaurants maintain only 1-2 days of LPG inventory, meaning prompt action is essential to prevent widespread closures. Aashita Relan of Royal China notes that the recent ₹115 hike in commercial cylinder prices, coupled with tightening supply chain, places immense pressure on operational overheads just as the industry sees robust post-season recovery. Sagar Daryani, president of NRAI, reports that many South Indian eateries have reduced dosa servings as preparing them requires constant gas flame, while organised restaurant chains and cloud kitchens are also facing uncertainty as they rely heavily on commercial LPG for daily operations. Companies fear that dwindling business will put pressure on cash flows at a time when final advance tax payments and liquor license renewals are due, with restaurant operators assessing all possible options to keep businesses floating.
