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Following Strait of Hormuz Disruptions, Morbi Ceramic Hub Shuts Hundreds of Kilns Through Mid-April

Industry leaders schedule a mid-April review following fuel shortages that pushed input costs beyond viable levels.

Overview

  • Industry associations confirmed a collective stoppage until around April 10–15, with roughly 430–450 of about 650–700 units already offline.
  • Propane-fired plants have largely shut, while pipeline gas users run at reduced rates after Gujarat Gas invoked force majeure on March 4 and limited supply to regular customers.
  • Public oil companies curtailed industrial propane deliveries after March 3 under a government order prioritising household LPG, and private supplier Aegis supplied only until March 10.
  • The Morbi cluster, a Rs 70,000–75,000 crore hub that supports roughly 3.5–4 lakh jobs, is using the downtime for maintenance as many migrant workers return to home states.
  • Crisil projects a 1–2% revenue decline for the tiles sector this fiscal with exports down 6–7%, warning of margin compression from higher fuel, freight and insurance costs as some firms introduce surcharges.