FoodWorks Stores Affected by LPG Supply Shortage Amid Ongoing West Asia Conflict

Jubilant FoodWorks Faces LPG Supply Constraints Due to War in West Asia

Jubilant FoodWorks, the franchisee of popular fast-food chains Domino's Pizza and Dunkin Donuts, has informed the exchanges that it is facing supply constraints on liquified petroleum gas (LPG) cylinders due to the ongoing war in West Asia.

Key Developments:

• The company stated that the war has constrained the distribution of commercial LPG across the country, resulting in supply constraints to certain parts of its store network.
• Jubilant FoodWorks is taking steps to conserve LPG and working overtime to move to alternate energy sources such as electricity and piped natural gas (PNG).
• The company is in constant engagement with oil marketing companies (OMCs) to remain apprised of the latest developments and plan operational responses accordingly.

Operational Impact:

• The operational impact at this stage is limited and being actively managed by the company.
• Jubilant FoodWorks has resilient systems and processes in place to navigate short-term operational challenges.

LPG Crisis:

• The ongoing war in West Asia has disrupted oil and gas supplies through the strategic Strait of Hormuz.
• India is grappling with LPG shortage due to the war, with the Centre notifying that supply continues to be affected due to the prevailing geopolitical situation.
• The government is pushing households and commercial users to switch to PNG, which is considered to be a more convenient alternative that is both domestically produced and sourced through diversified supply.

Government Support:

• The central government has increased commercial LPG allocations to states by 20%, raising the quota to 70% of pre-war levels to meet industrial requirements, including steel and automobiles.