Ahmedabad:
Morbi’s ceramic industry, which has already recovered to around 290 operational units after a near-shutdown in March, is set to return to full capacity in May with 675–700 units expected to be running as Gujarat Gas ramps up piped natural gas supply to the cluster, a senior government official said on Friday.
“Operations picked up in April, with gas consumption rising from 0.36 million metric standard cubic metres per day (mmscmd) at the end of March, when about 83 units were operational, to 2.70 mmscmd by April 22, serving around 290 units,” a Gujarat Gas official said.
Sandip Kundariya, president of the Floor Tiles Division of the Morbi Ceramic Manufacturers Association, said the cluster was on track to return to full strength by next month.
“Production has resumed across the cluster and most units are expected to be operational by May 10. Nearly 670 ceramic units in Morbi are connected to piped natural gas (PNG) supplied by Gujarat Gas and the industry is currently relying entirely on PNG,” he told HT.
He said units with liquefied natural gas (LNG) or PNG connections are not using propane or LPG under the current policy and supply situation, effectively shifting the Morbi cluster fully to piped natural gas.
Kundariya said around 400 units have already completed minimum guarantee offtake (MGO) agreements with Gujarat Gas for May, while the remaining units are expected to do so in the next few days. “Gas prices have increased sharply and are nearly double compared to March. Part of the cost will be passed on to customers, and for now production will be focused on domestic demand as export orders are limited,” he said.
Gujarat Gas Limited, a state-run city gas distribution company, supplies piped natural gas to industrial, commercial and domestic consumers across the state, including the Morbi ceramic cluster. During the recent disruption, the company directly sourced LNG from Africa and other non-Middle East markets and engaged with industry stakeholders to ensure continued supply, stable pricing and alignment of volumes to support the restart of units, said a company official.
Before the disruption, a large section of units operated on LPG and propane, which were key fuels for kiln operations until supply constraints and restrictions forced a shutdown and shift to PNG.
The sector had slowed from mid-March after the Iran war disrupted fuel supply chains, tightening availability of propane and LNG and pushing up input costs. Nearly 450 of around 700 units suspended production and shifted to maintenance mode, affecting over two lakh workers, according to the Gujarat Gas official.
With supply improving, consumption is projected to increase to 6–7 mmscmd in May as all units resume production. Manufacturers have coordinated with Gujarat Gas to secure piped natural gas supply and align requirements with production schedules, the official said.
Gas accounts for about 30% of total production cost in the ceramic sector, making the industry sensitive to supply and pricing. The Morbi Ceramic Manufacturers Association has sought removal of 6% VAT on natural gas to support the recovery.
The disruption also affected exports, with about 25% of Morbi’s ceramic output shipped to Middle East markets, where shipping uncertainty slowed dispatches.
Morbi, one of the world’s largest ceramic manufacturing hubs with an estimated annual turnover of around ₹60,000 crore.