RACL Geartech Flags Short-Term Production Impact Due to Gas Supply Constraints

RACL Geartech Limited has indicated that intermittent shortages in industrial gas supplies have affected its operations during the current month, as spillover effects from the ongoing Iran–Israel conflict tighten fuel availability.

In a regulatory communication, the company said the availability of LPG, PNG and CNG—key inputs for its manufacturing processes as well as those of its suppliers—has been inconsistent, leading to limited operational disruptions.

The supply constraints come against the backdrop of disruptions in global energy trade following the Iran–Israel war, which has affected cargo movement through the Strait of Hormuz, a critical route for oil and gas shipments. A significant portion of India’s LPG imports—estimated at around 80–85%—transits through this corridor, making supplies vulnerable to geopolitical disruptions.

The conflict has already led to tighter availability of commercial LPG across several Indian cities, with businesses such as restaurants and small enterprises reporting irregular cylinder supplies and shifting to alternate fuel sources. 

RACL Geartech said it is coordinating with suppliers and has initiated alternate production planning along with contingency measures to manage the situation. The company expects supplies to stabilise in the near term, which should help align operations.

However, it noted that if the constraints persist, there could be an impact on production and sales for the month. The company added that it continues to monitor the situation while working to maintain continuity, supported by steady demand across segments.

RACL Geartech Limited is an India-based manufacturer of precision-engineered components, primarily catering to the automotive sector. The company specialises in transmission gears, shafts and related assemblies used in two-wheelers, three-wheelers and passenger vehicles. It supplies to several global and domestic OEMs, with a growing presence in export markets such as Europe and Japan.