Gujarat Gas Helps Revive Morbi Ceramic Industry with Gas Supply
Gujarat Gas Limited (GGL), the authorized supplier of Piped Natural Gas (PNG) in Morbi, Gujarat, has taken steps to support the restart of the region's ceramic industry following severe disruptions caused by the recent geopolitical crisis. The company issued a press release on April 23, 2026, disclosing key developments and data related to its supply efforts and the gradual recovery of the cluster.
The disclosure was filed with BSE Limited (Company Code: 539336) and NSE (Code: GUJGASLTD) by Company Secretary Sandeep Dave under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Crisis Disrupted Morbi's Ceramic Hub and Affected 2 Lakh Workers
Morbi in Gujarat is one of India's largest ceramic manufacturing clusters, known for tiles, sanitaryware, and related products. The recent geopolitical crisis created serious challenges for the industry, including a sharp rise in raw material costs, restrictions on the industrial use of propane, and a significant increase in freight expenses.
These pressures led several ceramic units in Morbi to voluntarily shut down their operations starting mid-March 2026. The temporary closure of manufacturing units affected the livelihoods of more than 2 lakh workers who depend on the ceramic sector for employment.
GGL Sourced Gas from Non-Middle East Markets to Maintain Supply
To manage the supply disruption caused by the geopolitical situation, Gujarat Gas proactively sourced natural gas from non-Middle East markets at spot rates. This was done in line with directives from the Government of India to ensure continuous gas availability for industrial consumers.
GGL had already built a comprehensive gas distribution network in the Morbi area to meet the cluster's full potential demand. This infrastructure played a key role in enabling the company to continue supplying gas even when conventional sourcing channels came under stress.
GGL Engaged Morbi Ceramic Association to Facilitate Restart
Recognising the scale of the disruption, Gujarat Gas's Geographical Area (GA) and Corporate teams held extensive discussions with industry stakeholders, including the Morbi Ceramic Association. The focus of these engagements was to address concerns around gas availability, pricing stability, and adequate supply volumes to restart manufacturing operations.
These discussions led to the execution of new gas supply agreements with ceramic units, giving manufacturers the assurance they needed to resume production.
Sharp Recovery in Gas Consumption Through April
The coordinated efforts have produced clear results. Industrial activity in Morbi began picking up in April 2026, with a significant jump in the number of units back in operation and the volume of gas being consumed.
Gas consumption in the cluster rose from approximately 0.36 mmscmd serving around 83 units as of March 31, 2026, to approximately 2.70 mmscmd serving around 290 units as of April 22, 2026. This represents more than a sevenfold increase in gas consumption in less than a month.
Up to 675–700 Units Expected to Be Operational by May 2026
The recovery is expected to continue and accelerate in the coming weeks. The number of active gas consumers in Morbi is projected to grow from the current approximately 290 units to around 675–700 units by May 2026. Total gas consumption is forecast to reach 6–7 mmscmd during that month.
To support this expansion, GGL has assured customers of uninterrupted gas supply along with price certainty for the entire month of May 2026. This commitment, backed by the company's diversified sourcing strategy, is expected to boost manufacturer confidence and speed up the restart of production across the cluster.
2 Lakh Workers Stand to Benefit from Industry Recovery
The resumption of ceramic manufacturing operations is expected to directly benefit the more than 2 lakh workers who were impacted by the temporary shutdowns during the crisis. Stable gas supply and assured pricing are seen as critical enablers for the industry to return to full capacity.
Beyond industrial production, Gujarat Gas is also facilitating PNG connections for employee canteen facilities inside manufacturing units, further supporting the overall industrial ecosystem in Morbi.
Filing Details
The regulatory filing was referenced as GGL/SEC/2026/1561 and addressed to the Listing Departments of both BSE and NSE on April 23, 2026. Gujarat Gas Limited is a GSPC Group Company and a Government of Gujarat undertaking. Its corporate office is located at IT Tower-2, Infocity, Gandhinagar – 382009, Gujarat.