IRCTC LPG Shortage: Stove Kraft, TTK Prestige Shares Jump on Induction Demand

Stocks such as TTK Prestige and Jaipan Industries rose as much as 10%, while Butterfly Gandhimathi Appliances and Stove Kraft gained about 15% and 12%, respectively. Shares of Borosil also advanced around 2.5% during the session, reflecting investor optimism that consumers and institutions could shift toward electric cooking appliances if LPG availability becomes uncertain.

IRCTC Directs Station Caterers to Shift to Induction and Microwaves

Amid the ongoing LPG supply concerns, Indian Railway Catering and Tourism Corporation (IRCTC) has instructed static catering units at railway stations to switch to alternative cooking methods such as induction stoves and microwave ovens. The directive applies only to catering units operating at stations and not to kitchens onboard trains.

In addition, the railway catering authority has asked vendors to maintain sufficient stocks of Ready-to-Eat (RTE) items along with regular packaged food. Catering units where LPG-based cooking operations are halted have also been instructed to immediately inform the authorities to ensure food services continue without disruption.

LPG Crisis Linked to Geopolitical Tensions

The LPG supply concerns are linked to the ongoing geopolitical conflict involving the United States, Israel, and Iran. The escalation has reportedly led to the closure of the Strait of Hormuz, a critical shipping route through which India receives a large portion of its LPG imports from Middle Eastern countries such as Saudi Arabia.

India consumes around 31.3 million tonnes of LPG annually. Approximately 87% of this demand comes from the domestic household sector, while the remaining portion is used by commercial establishments, including hotels and restaurants. Of the country’s total LPG requirement, about 62% is met through imports. Nearly 85-90% of these imports typically pass through the Strait of Hormuz, making the supply chain vulnerable to geopolitical disruptions.

Panic Buying of Induction Cookers in Markets

Concerns over rising LPG prices and potential shortages have triggered a sharp increase in the demand for electric cooking appliances in several markets. 

Government Says LPG Supply Is Stable

Despite the surge in demand and market concerns, government sources have indicated that the situation remains under control. On March 10, officials stated that LPG production had increased by 10% and that no LPG distributor in the country is currently facing supply shortages.

However, reports suggest that the supply of commercial LPG cylinders to hotels and restaurants has been affected in some cities, including Mumbai, Bengaluru, and Chennai, adding to concerns among businesses that rely heavily on gas-based cooking.

Investor Sentiment Drives Stock Rally

The rally in electric appliance stocks reflects investor expectations that consumers, restaurants, and institutional kitchens may temporarily switch to induction-based cooking and other electric appliances if LPG supply disruptions continue. India’s kitchen appliance industry is dominated by companies such as TTK Prestige, Butterfly Gandhimathi Appliances, and Stove Kraft, which manufacture products including pressure cookers, cookware, LPG stoves, mixer grinders, and induction cooktops.

The sharp rally in appliance stocks may be largely tactical and sentiment-driven. If geopolitical tensions ease and LPG supply normalises, the stocks could witness corrections unless supported by strong underlying fundamentals.