Morbi Tiles Industry Struggles Amid Middle East Tensions and Gas Supply Cuts

Major companies such as Asian Granito and NITCO decided to impose fuel surcharges of up to 5 per cent to meet rising fuel costs - Middle East tensions and gas supply cuts severely impacted the Morbi tiles industry: Liquefied natural gas (LNG) and propane supplies, which account for 35 per cent of cost of goods sold (COGS), have been curtailed, forcing most ceramic plants to shut down production or operate at significantly reduced levels. Here is how the industry is coping with the crisis. Asian Granito will impose a 5 per cent fuel surcharge in response to falling gas prices. Kamlesh Patel, MD & CEO, Asian Granito, said that gas supply cuts may disrupt the company's operations for some time and the company has decided to bear the bulk of the increased fuel costs by imposing a 5 per cent fuel surcharge until 31 March. Despite significant cuts in its gas supply to about 2,000 tile factories around the Strait of Hormuz, Gujarat.