As supply disruptions linked to tensions around the Strait of Hormuz raise concerns about industrial gas availability in India, Britannia Industries has reassured investors that it is prepared to manage potential disruptions without affecting production.
In a regulatory filing, the biscuit maker said it currently holds adequate finished goods inventory across its supply chain and has the ability to switch between different fuel sources at its manufacturing facilities if natural gas supplies tighten.
The company stated that its factories already operate using a mix of fuels—including LPG, PNG, biomass, and liquid fuels—allowing operational flexibility if gas availability declines.
‘Fuel Flexibility’ Strategy
Britannia said its manufacturing units can switch between fuels through technical adjustments, depending on availability. This multi-fuel capability allows the company to continue operations even if industrial gas supplies face temporary curbs.
“The company uses various types of fuel across its manufacturing facilities … and has the option of switching between fuels, where feasible, by making technical adjustments,” the company said in its filing.
The firm added that it will continue monitoring developments closely and take necessary measures to ensure smooth production and supply to the market.
Why Gas Supplies Are Under Pressure
Concerns about industrial gas supply have grown as the government prioritises household and transport fuel needs during the ongoing Middle East crisis.
A significant share of India’s LPG imports—nearly 60% of the country’s requirement—moves through the Strait of Hormuz, one of the world’s most critical energy shipping routes. Any disruption there can affect supply chains for industries that rely on LNG or LPG.
To manage the situation, the government has revised the priority allocation of domestically produced natural gas, placing LPG production, compressed natural gas (CNG) for vehicles, and piped natural gas (PNG) for household cooking at the top of the supply list.
Authorities have also taken additional steps, including raising the price of a 14.2-kg domestic LPG cylinder by ₹60 and invoking powers under the Essential Commodities Act to direct oil refineries to maximise LPG production for household consumption.
Stock Performance
Shares of Britannia remained largely flat in intraday trading following the clarification. However, the stock has declined about 6.15% over the past six months, reflecting broader market volatility amid geopolitical tensions and rising input costs.
For now, the company’s diversified fuel strategy and inventory buffers appear to provide a cushion against potential disruptions triggered by the evolving energy situation in West Asia.
