House construction hit as material supply falls, prices likely to surge

Reports say that the war led by the US and Israel against Iran is seriously affecting the construction sector in Keralam. The ceramic tiles industry, which is essential for building houses and other structures, has been particularly impacted. Shares of major companies in the sector have fallen by up to 25 percent, while even medium-sized companies are struggling to stay afloat. Many small ceramic tile retail outlets are also facing the threat of closure.

Propane and natural gas, the main fuels required for tile manufacturing, are largely supplied from West Asia. Due to the war, the supply of these fuels has been disrupted, and prices have risen sharply. As a result, the tile industry has been severely affected. In India, Morbi in Gujarat is the main hub for tile manufacturing, with a large number of factories operating there. However, due to the ongoing crisis, many factories have been forced to shut down temporarily, and several others are on the verge of closure.

Many small units in the Morbi cluster have already reduced production or temporarily stopped operations. Reports say that more than half of the gas-based units and nearly 70 percent of dual-fuel units have halted operations. Industry bodies warn that if the situation continues, it could affect both employment and exports.

When small factories shut down, it may create opportunities for larger companies. However, industry sources say most companies currently have stock that will last only about two months. They warn that tile prices could rise sharply if the situation continues.