LPG Shortage Hits Indian AC Industry, Production Costs Surge: Nuvama Report

• Indian AC manufacturers face significant production hurdles due to tightening LPG supply, impacting heat exchanger brazing.
• Government prioritizes household LPG, leaving commercial users and EMS firms with reduced fuel availability.
• Manufacturers shift to oxy-acetylene for brazing, but this alternative is import-dependent and sensitive to global trade.
• Fuel challenges coincide with unseasonal rains and rising input costs, leading to 5-10% price hikes for consumers.
• Financial pressures from rupee depreciation and new star rating regulations necessitate further price increases of 8-14%.