Shares of home appliance makers traded higher as e-commerce platforms witnessed a surge in purchases of electric stoves
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MUMBAI — Shares of home appliance makers traded higher on Wednesday as e-commerce platforms witnessed a surge in purchases of electric stoves and induction cooktops amid the Middle East conflict, over reports of potential LPG shortages.
Moreover, quick commerce platforms were selling Inductions stoves at discounts of more than 50 per cent.
Butterfly Gandhimathi Appliances shares climbed about 4 per cent to Rs 630.5, hitting an intraday high in early trade on the BSE. Meanwhile, shares of V-Guard Industries logged an intraday high of Rs 326, up 3 per cent from the previous close on the same exchange.
The sharpest surge came from major induction cooktop producers. Stocks of Stove Kraft and TTK Prestige rose more than 10 per cent.
The ‘Pigeon’ parent firm’s stock jumped 7.32 per cent to Rs 523.55 on the BSE, while shares of Prestige induction cooktop maker TTK Prestige surged 14.63 per cent to Rs 556.
Meanwhile, industry experts said that urban households should be encouraged and incentivised to cook with electric induction stoves amid the LPG crisis.
Abhishek Kar, Fellow, CEEW, said India imports about two-thirds of its LPG, with more than 90 per cent coming from countries in West Asia such as the UAE, Qatar, and Saudi Arabia.
"Invoking the Essential Commodities Act to ensure that LPG supply is prioritised for domestic cooking is an important first step. The government should now emulate the ‘Give It Up’ campaign for LPG subsidy with a new ‘Give It Up’ campaign on LPG use, targeted at households that have, or can afford, electric induction stoves. This would ease the pressure on domestic LPG demand," Kar suggested.
Urban households should be encouraged and incentivised to cook with electric induction stoves, he mentioned.
Additionally, the National Restaurant Association of India (NRAI) on Tuesday urged its membersto reduce LPG consumption by focusing on menus that require lower gas usage or shorter cooking cycles and also look at electric gadgets as alternatives for cooking wherever feasible.
"The ongoing geopolitical developments have led to severe disruption in the supply chain of commercial LPG. If the situation escalates further and availability tightens significantly, the restaurant industry may face serious operational challenges," the NRAI said in an advisory to restaurant owners across the country.
"In order to safeguard business continuity, employment, and the stability of our sector, NRAI urges all members to immediately adopt these fuel conservation and operational continuity measures," the advisory said.