Kirloskar Ferrous Resumes Solapur Facility Operations After Middle East Conflict Triggers LPG Shortage

Kirloskar Ferrous Industries Limited has partially restarted production at its Solapur plant following a brief shutdown caused by an LPG supply shortage. In a filing to BSE Limited dated March 21, 2026, the company confirmed that one of its two High Pressure Moulding Lines (HPMLs) at the facility was back in service, running on an alternative fuel in place of LPG. The company noted that the temporary stoppage had no material financial impact.

The disruption began on March 17, 2026, when Kirloskar Ferrous first notified regulators that one of the two HPMLs had been affected and that management was looking to secure alternative LPG sources or switch to a substitute fuel to keep the plant running. The second moulding line remained operational throughout, which helped contain the impact on overall output.

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Kirloskar Ferrous, part of the diversified Kirloskar Group, manufactures grey iron castings and pig iron, supplying primarily to customers in the automotive and industrial machinery sectors. 

The company linked the LPG shortfall to strains on global energy markets stemming from the ongoing Middle East conflict, which has put persistent pressure on fuel availability and costs across international supply chains. However, Kirloskar Ferrous is not alone in this, manufacturers across India's energy-intensive industries have more broadly been grappling with heightened input cost volatility and logistical uncertainty as a result of the regional instability.

Notably, LPG plays an essential role in iron casting operations, where it is used in High Pressure Moulding to maintain the precise temperature and process conditions needed to produce castings consistently and to specification. 

A prolonged fuel interruption can affect throughput, disrupt delivery commitments and reduce overall plant efficiency.

The company runs several plants across Maharashtra and Karnataka, with its Solapur facility being one of its principal production sites, equipped with mechanised moulding infrastructure to serve original equipment manufacturers at volume.

The company confirmed compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed companies to promptly inform stock exchanges of material developments. Both the initial disruption and the subsequent resumption of operations were disclosed to BSE within the required timeframe.

The episode highlights a broader vulnerability for manufacturers that rely on imported or globally traded energy inputs. With the Middle East conflict showing little sign of near-term resolution, businesses in sectors such as metal casting, auto components and other process-intensive industries are under growing pressure to diversify their fuel sources and build greater resilience into their supply chains.

Kirloskar Ferrous has not indicated whether it plans to return to LPG once supplies stabilise, or whether the alternative fuel arrangement will be kept in place on a more permanent basis.