Packaged food manufacturers and foodservice companies in India are exploring alternative energy sources such as electrical heating systems and biofuels to keep operations running smoothly amid concerns over possible LPG supply disruptions linked to the ongoing West Asia conflict.
Companies including Balaji Wafers, Gopal Snacks, and Compass Group India said they are assessing contingency plans after reports of reduced commercial gas allocation in some regions.
Balaji Wafers founder and managing director Chandu Virani said the company has received notice of reduced gas supply in Gujarat following disruptions in global energy markets after the US-Israel strike on Iran.
“We have been informed that only half the usual supply may be available this month. We are evaluating alternative fuel options, including liquid fuels, and will take a decision soon,” he said.
Apart from fuel concerns, companies are also facing rising packaging costs due to higher polymer prices, with plastic rates increasing by nearly ₹100 per kg. Industry players say the combined impact could affect production costs as well as the broader supply chain, including farmers and contract workers.
Foodservice provider Compass Group India said it is closely monitoring LPG availability and has begun deploying alternate cooking solutions in its central kitchens to ensure uninterrupted services across hospitals, educational institutions, corporate offices and manufacturing facilities.
Chief Culinary Officer Arjyo Banerjee said the company is increasing the use of electrical equipment and bio-based fuels to power steam systems, while also modifying menus to reduce fuel consumption without compromising nutrition and safety.
Meanwhile, Gopal Snacks said it has already adopted bio-coal at its Modasa and Nagpur plants and does not expect any disruption in production. The company added that diversifying fuel sources is part of its long-term strategy to reduce dependence on LPG and manage unforeseen supply shocks.
Industry sources said the government has recently prioritized domestic LPG consumption amid global tensions, prompting commercial users to prepare for tighter supplies. Data from Justdial shows a sharp spike in online searches related to LPG and cooking gas services in the past week, indicating rising concern over availability.
With summer demand approaching, companies are accelerating contingency planning to ensure that production and food services remain unaffected despite uncertainty in fuel supplies.