Company says that it has the option of switching between fuels, where feasible, by making technical adjustments
Fast-moving consumer goods (FMCG) major Britannia Industries has said that company has not experienced any significant disruption to operations at its manufacturing facilities on account of supply of industrial gas.
In an exchange filing, the company noted that it uses various types of fuel across its manufacturing facilities viz. LPG, PNG, biomass, liquid fuels and has the option of switching between fuels, where feasible, by making technical adjustments.
“The company has received multiple enquiries and has taken note of certain reports regarding potential disruption to its operations due to industrial gas supply related issues in the country on account of the conflict in the middle east,” it highlighted.
Britannia added that the company has adequate levels of finished goods available across its supply chain network to meet market demand. Britannia emphasised that it continues to closely monitor developments while taking appropriate steps to ensure continuity of operations.
“The company remains fully confident of effectively managing the challenges that may arise in the future and will make necessary disclosures, as required, under the Sebi (LODR) Regulations, 2015. We are fully confident that the government of India is taking and will continue to take necessary steps to address the challenges, if any, that the industries may face, on account of the conflict in the middle east,” it stated.
Earlier, the Retailers Association of India (RAI) urged the Ministry of Petroleum and Natural Gas and leading oil marketing companies to ensure uninterrupted supply of commercial LPG cylinders to restaurants and food service establishments across the country.
Recent communications from oil marketing companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, indicate that LPG supplies are currently being prioritised for domestic consumers due to ongoing geopolitical disruptions affecting global fuel supply.
RAI added that while the industry fully supports the government’s efforts to safeguard household energy security, the current restrictions have created serious operational challenges for restaurants and commercial kitchens that depend heavily on LPG for cooking operations.
Emphasising that crude and its derivatives constitute a significant portion of raw material costs, a report has stated that if crude oil prices climb to the USD 100 to 130 per barrel range, a 100 to 250 basis points impact on gross margins for most beauty and personal care (BPC) and fast-moving consumer goods (FMCG) players is expected.
The report by Choice Institutional Equities noted that in order to offset the cost pressure, FMCG companies might have to take high single-digit to low double-digit price increases. However, this would eventually lead to near-term volume pressure on the sector, reversing the volume recovery trend of the last one to two quarters.
