Jubilant FoodWorks Flags LPG Supply Constraints
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Jubilant FoodWorks Flags LPG Supply Constraints

Premiumisation Drives Growth For Chains Like KFC & Domino's

Company says that the impact is limited for now; steps up shift to PNG and electricity to manage disruptions

Jubilant FoodWorks has informed that supply constraints in commercial LPG, triggered by the ongoing geopolitical situation in the Middle East, are affecting parts of its store network across India, in exchange filing.

In a regulatory filing under Regulation 30 of the Listing Regulations, the company stated, “Due to the ongoing geopolitical situation in the Middle East, there are supply constraints on the distribution of commercial LPG across the country.” It added that “the supply of LPG cylinders to certain parts of the company’s store network has been constrained.”

Despite the disruption, the company maintained that “operational impact at this stage is limited and being actively managed.”

To mitigate the situation, Jubilant FoodWorks said it is taking steps to reduce reliance on LPG. “The Company is taking several steps to conserve LPG and working overtime to move to alternate energy sources like electricity and piped natural gas (PNG),” the filing noted.

The Domino’s Pizza and Dunkin Donuts operator in India further highlighted its ongoing coordination with suppliers, stating, “The Company is in constant engagement with oil marketing companies (OMCs) to remain apprised of the latest developments and plan operational responses accordingly, given the rapidly evolving nature of the situation.”

Reassuring stakeholders, the company said it has the capability to handle short-term challenges. “The company has resilient systems and processes in place to navigate short-term operational challenges and will continue to closely monitor the situation,” it added.

The government, for its part, has formed a committee to monitor the situation, pushed refiners to boost LPG output and begun loading LPG onto Indian vessels stranded in the Persian Gulf to ease the crunch. After initially slashing commercial LPG allocation to 20 per cent of pre‑crisis levels, it has recently allowed an additional 20 percentage points, taking total allocation to about half of normal, with priority for restaurants, dhabas, hotels and canteens.

Over the past fortnight, hotel and restaurant associations across major cities, including Mumbai, Delhi, Pune, Bengaluru and Kochi have reported sharp curbs or near‑total stoppage in supply of commercial cylinders after the government asked oil marketing companies to prioritise domestic LPG. Industry bodies have warned that many eateries, cloud kitchens and caterers may be forced to scale back operations or temporarily shut if full supplies are not restored, even as they seek clearer guidance from the Petroleum Ministry to avoid over‑compliance by distributors.

The update comes amid a broader commercial LPG crunch in India triggered by the escalating conflict in West Asia, which has disrupted tanker traffic through the Strait of Hormuz, a key route for LPG cargoes to the country. India imports roughly two‑thirds of its LPG needs, with about 85 to 90 per cent of these shipments traditionally moving through Hormuz, making downstream users such as restaurants and quick‑service chains vulnerable to supply shocks from the region

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