Morbi Ceramic Units Restart on Expensive Piped Natural Gas
OIL & GAS

Morbi Ceramic Units Restart on Expensive Piped Natural Gas

The ceramic cluster in Morbi has resumed manufacturing after a period of disruption, with producers citing a sharp rise in the cost of piped natural gas (PNG) as a key factor in recent decisions. Companies halted or scaled back operations earlier when fuel economics eroded margins, and the restart follows arrangements to secure PNG at elevated rates. Producers have adjusted selling prices sharply, with an across the board increase of 40 per cent aimed at restoring viability.

Manufacturers reported that the price revision was necessary to offset higher input costs associated with firing, drying and other heat intensive processes that rely on PNG. Firms recalibrated price lists and communicated the changes to distributors and trade partners, emphasising that the adjustment reflected changes in underlying energy costs rather than product revaluation. The move has been framed as a cost recovery measure to stabilise cash flows and ensure plants can operate without further interruptions.

The increase has altered marketplace dynamics, with buyers and wholesalers revising procurement plans to accommodate higher selling prices. Trade participants have indicated that negotiations are under way over delivery schedules and payment terms as the market absorbs the shock. Analysts of the sector view the development as a test of demand elasticity for ceramic products produced in the region and of the ability of firms to pass through energy cost increases.

Longer term, industry observers expect companies to explore efficiency measures and alternative fuel mixes to reduce exposure to volatile PNG prices while maintaining production continuity. Firms are also assessing inventory and order books to balance supply and demand constraints created by the sudden price adjustment. The restart under higher energy costs underscores the sensitivity of commodity intensive manufacturing to fuel pricing and the trade offs firms must manage between output and profitability.

The ceramic cluster in Morbi has resumed manufacturing after a period of disruption, with producers citing a sharp rise in the cost of piped natural gas (PNG) as a key factor in recent decisions. Companies halted or scaled back operations earlier when fuel economics eroded margins, and the restart follows arrangements to secure PNG at elevated rates. Producers have adjusted selling prices sharply, with an across the board increase of 40 per cent aimed at restoring viability. Manufacturers reported that the price revision was necessary to offset higher input costs associated with firing, drying and other heat intensive processes that rely on PNG. Firms recalibrated price lists and communicated the changes to distributors and trade partners, emphasising that the adjustment reflected changes in underlying energy costs rather than product revaluation. The move has been framed as a cost recovery measure to stabilise cash flows and ensure plants can operate without further interruptions. The increase has altered marketplace dynamics, with buyers and wholesalers revising procurement plans to accommodate higher selling prices. Trade participants have indicated that negotiations are under way over delivery schedules and payment terms as the market absorbs the shock. Analysts of the sector view the development as a test of demand elasticity for ceramic products produced in the region and of the ability of firms to pass through energy cost increases. Longer term, industry observers expect companies to explore efficiency measures and alternative fuel mixes to reduce exposure to volatile PNG prices while maintaining production continuity. Firms are also assessing inventory and order books to balance supply and demand constraints created by the sudden price adjustment. The restart under higher energy costs underscores the sensitivity of commodity intensive manufacturing to fuel pricing and the trade offs firms must manage between output and profitability.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement