LPG crisis: TTK Prestige, other appliance firms' shares rise up to 8% amid IRCTC's induction cooker directive

LPG crisis: TTK Prestige, other appliance firms' shares rise up to 8% amid IRCTC's induction cooker directive

• Electric kitchen appliance stocks rose 8% due to LPG worries.
• IRCTC mandates station caterers to use induction stoves, microwaves
• LPG shortage boosts induction cooker sales in Kolkata

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Share prices of electric kitchen appliances such as induction cookers have surged up to 8% on March 11 amid growing uncertainty over LPG availability.

Amid the ongoing LPG supply concerns, IRCTC has directed static catering units at railway stations (not on trains) to shift to alternative cooking methods such as microwaves and induction stoves.

Caterers have also been asked to keep adequate stocks of Ready-to-Eat (RTE) items along with regular packed food. Units where LPG-based cooking stops must inform authorities immediately.

Shares of TTK Prestige and Jaipan Industries rose 8% each while those of Butterfly Gandhimathi and Stove Kraft climbed 2.5% and 2%, respectively. Meanwhile, Borosil stock rose 3%.

India consumes about 31.3 million tonnes of LPG annually. As much as 87% of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants.

Of this total requirement, as much as 62% is met through imports. The US and Israel's attack on Iran and Tehran's retaliation have shut the Strait of Hormuz - the conduit through which India got 85-90% of its LPG imports from countries like Saudi Arabia.

Manish Khosla, director of Kolkata's Khosla Electronics, told The Times of India that the surge in demand started on Saturday evening as concerns over higher prices and possible LPG shortages grew.

“People are panicking due to the rise in gas prices and are apprehensive about the unavailability of cylinders. On Saturday, we saw a 60 per cent spurt in sales and the same trend continued on Sunday,” he said.

Khosla said the chain typically sells about 40–45 induction cookers a day across its 86 outlets in the city. “Now the sales have jumped to around 120–130 units daily,” he added.

On Ezra Street, one of Kolkata’s largest markets for electrical appliances, shopkeepers said sales of cooking-related devices had risen sharply over the past few days and could increase further if the supply situation does not improve.

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