New Delhi, March 12 Shares of kitchen appliance manufacturers continued to rally on Thursday, driven by increased demand amid supply disruptions of commercial LPG cylinders due to the West Asia crisis.
Shares of Jaipan Industries rose by 14.35 per cent, TTK Prestige jumped by 8.30 per cent, and Butterfly Gandhimathi Appliances increased by 0.65 per cent on the BSE.
These companies deal in appliances such as induction cooktops and electric rice cookers.
Shares of kitchen appliance manufacturers had also surged on Wednesday.
Reports suggest that the LPG shortage is causing the closure of some restaurants.
Restaurant-linked stocks such as United Foodbrands tanked by 7.23 per cent, while Westlife Foodworld dropped by 3 per cent, Jubilant FoodWorks dipped by 2.14 per cent, Restaurant Brands Asia declined by 1.39 per cent, and Sapphire Foods India slipped by 0.12 per cent.
Shares of food delivery companies also ended lower. Eternal declined by 1.14 per cent, and Swiggy edged lower by 0.93 per cent.
Brokerage Goldman Sachs, in a report, said that India faces an LPG shortage, importing 60 per cent of its supply, with 90 per cent of imports transiting the Strait of Hormuz, which is affected by geopolitical factors.
Despite a 25 per cent increase in domestic production, supply remains constrained. The government is prioritizing LPG for domestic cooking and essential sectors, such as hospitals, while restricting supply to non-essential commercial enterprises, including restaurants.
Quick-service restaurant (QSR) chains, such as Jubilant FoodWorks, Devyani International, Sapphire Foods India, and Westlife Foodworld, rely heavily on commercial LPG cylinders to run kitchen operations.
"Based on our channel checks, the inventory of LPG cylinders at restaurants is less than one week. Therefore, if there is a shortage of commercial LPG cylinders, it would impact the ability of QSR chains to meet normal demand, which would lead to a temporary decline in revenues," it said.
Meanwhile, retailers across Delhi are witnessing a sharp increase in the sales of induction cooktops, with some reporting a 75 to 80 per cent increase in purchases amid concerns over LPG shortages.
Shopkeepers said that this surge has been ongoing for the past two days, with customers increasingly turning to electric cooktops, infrared stoves, and compatible utensils as a backup to an LPG stove.
Amit Gupta, who owns Effects Kitchens and Hardware at Connaught Place, spoke about a spike in both online and offline demand.
"Since yesterday, we have recorded more than 200 walk-in customers, while another 250 to 300 existing and new clients have contacted us through phone calls. Previously, electric cooktops were largely purchased by hospitality outlets, but now even households are coming in a panic, fearing the stoppage of LPG supply," he said.
