Building Materials – Event Update – Morbi Restart on Improving Gas Supply
Published on 22 Apr 2026
We recently interacted with an industry expert in the Indian ceramic tile segment, who shared detailed insights on the evolving dynamics in the Morbi cluster. The discussion highlighted the sharp disruption in operations due to fuel unavailability, significant cost pressures arising from elevated gas prices, and the consequent impact on production and pricing. It also covered challenges in export markets amid geopolitical issues, shifts in fuel mix, supply-demand imbalances due to plant shutdowns, and the gradual recovery expected from May’26 onwards. We believe that with the gradual resumption of Morbi production and exports yet to pick up, the relatively free runway enjoyed by larger players in the domestic market for market share gains could now come under risk. The opening of the sanitaryware plant in Morbi bodes well for CERA, as outsourcing accounts for ~60% of its sanitaryware revenue, which had been impacted due to disruptions in Morbi.
