Gujarat Gas Ltd (GGL)'s industrial gas price hike will have no effect on the laminate industry in India, as the laminate manufacturing units are not dependent on gas. The Ply Reporter study finds that GGL's industrial gas supply mostly goes to the ceramic and other industries in about 4,500 industrial units. The laminate industry based in Morbi, Gujarat, and other parts of the country is basically dependent on coal and other fuels like wood or biomass to meet its energy needs.
It is to be noted that state-owned GGL has observed a price hike in industrial gas by Rs Rs 2.50 scm from the current Rs 38.43, and the price rise has become effective from August 21, 2023. This is the first price increase for industrial gas by Gujarat Gas after five consecutive price cuts in 2023. The price increase is due to increased spot liquefied natural gas (LNG) prices. Although, according to the GGL Q1 report, their industrial sales volumes increased by 10 percent, this was due to softer spot LNG prices, the benefit of which was passed on to industrial customers to make natural gas more competitive with alternate fuels.
The industry players state that the price hike of GGL gas will have no effect on the laminate industry, while the ceramic industry might be affected because the consumption of gas in that industry is higher. The big giant companies in the laminate industry, if they are using gas, might get affected by this price hike, but the chances are very low because most of the units, whether small or large, are not using industrial gas either. The laminate industry is heavily dependent on coal and other biomass fuels, and the supply of coal is mainly from Indonesia, along with GMDC's supply of lignite. Besides, wood residue is used in laminate manufacturing.
Morbi, Gujarat, is a hub for decorative laminates, with around 50 manufacturing establishments of decorative laminates, and the region has spearheaded capacity growth. The leading laminate brands from Morbi include Rebecca Laminates, Bell Laminates, Monal Laminates, Suntouch Laminates, Samarpan Laminates, Well Mica, Reoluxe, etc. Morbi-based laminate players focus on Western and Southern markets with excellent after-sales service.