India | Manufacturing | Energy Management
Gujarat’s appeal to factories to reduce electricity consumption during evening peak hours highlights an important operational challenge for Indian industry: managing production efficiently when power demand, energy costs and supply risks rise together.
India’s manufacturing sector is working to improve productivity, increase capacity, deliver orders faster and compete in domestic and international markets. But there is one operating cost that can quietly weaken all these efforts: electricity.
On 21 October 2026, reports said Gujarat had asked factories to curb electricity consumption during evening peak hours, between 5 PM and 11 PM, as rising demand and pressure on power supplies created concerns about the availability of electricity. The appeal included shifting suitable production activities away from these hours where possible.
The development is particularly relevant because Gujarat is one of India’s major industrial states, with manufacturing activity across chemicals, engineering, textiles, ceramics, pharmaceuticals, automotive components and other sectors.
The message for manufacturers elsewhere in India is not that every factory must immediately change its shifts. Rather, it is that energy planning should be treated as a production and business-continuity issue—not simply as a monthly electricity-bill exercise.
The central question for every plant head is this: if electricity becomes more expensive, less predictable or constrained during certain hours, how quickly can the factory respond without missing delivery commitments?
1. What Has Happened in Gujarat?
Gujarat has asked factories to reduce or shift electricity consumption during the evening peak period of 5 PM to 11 PM. The appeal came amid higher power demand and pressure on electricity supply.
Reuters reporting on 21 October cited low coal inventories at many of India’s coal-fired power plants, alongside increased demand associated with hotter weather, irrigation requirements and industrial activity. The country was also facing a challenge in storing enough daytime renewable electricity for use after solar generation declines in the evening.
These factors illustrate a wider electricity-system challenge: power demand does not remain constant throughout the day, and the availability of different sources of generation changes by hour.
For a factory, this matters because its operating schedule may overlap with the period when the electricity system is under the greatest pressure.
However, the distinction is important. The reported request concerns Gujarat; it should not be interpreted as a nationwide order directing all Indian factories to stop evening production. Individual manufacturers should check communications from their electricity distribution company, state authorities and applicable tariff or supply arrangements before changing operations.
Source: Reuters, 21 October 2026 — “India’s top industrial state asks factories to curb power usage as demand surges.”
2. Why Should Manufacturers Outside Gujarat Pay Attention?
Even if a factory is not located in Gujarat, the underlying business problem is relevant across manufacturing: electricity consumption, production planning and operating costs are closely connected.
A factory may face several energy-related risks:
- Higher energy costs: Electricity charges can materially affect production economics, particularly in energy-intensive processes.
- Peak-period exposure: Certain tariffs or supply arrangements may make consumption during specific periods more expensive or operationally sensitive.
- Production interruptions: An unexpected interruption can disrupt machine sequences, work-in-progress, quality control and dispatch schedules.
- Backup-power costs: Running diesel generators or other backup systems may be substantially more expensive than normal grid electricity, depending on the site.
- Delivery pressure: A delayed production batch can affect downstream assembly, customer commitments and supplier ratings.
- Limited visibility: Many factories know their total monthly electricity consumption but cannot easily identify which production line, machine or shift drives their highest demand.
These risks are not identical for every plant. Their impact depends on the state, distribution company, tariff structure, contract demand, process type and backup arrangements.
The practical lesson is simple: a manufacturer needs to understand not only how much electricity the plant consumes, but also when it consumes it, what the electricity enables the factory to produce, and what happens if that supply becomes constrained.
3. Lesson One: Measure Energy Consumption by Shift, Line and Machine
Many factories review electricity bills every month. That is useful for accounting, but insufficient for operational decision-making.
A monthly bill may tell management that the factory consumed 200,000 units of electricity. It may not tell the plant head whether the highest consumption occurred during the first shift, the evening shift, a particular production line or a period when machines were running without producing saleable output.
Manufacturers should begin by establishing a basic energy baseline.
What should the plant measure?
- Electricity consumption by shift and, where practical, by production line.
- Peak demand in kilowatts or kilovolt-amperes, as relevant to the installation.
- Energy consumption per unit, batch, tonne or finished product.
- Machine idle time while electrical loads remain active.
- Electricity used by compressors, pumps, chillers, furnaces, ovens and material-handling systems.
- Production output during the same measurement period.
Where feasible, install sub-meters on major loads or use existing energy-management systems to collect interval data. Integrate the readings with production records so that electricity consumption can be compared with actual output.
A useful example
Suppose two shifts produce similar quantities of a component, but the evening shift consumes significantly more electricity per unit.
That difference should trigger an investigation. Possible causes include different machine utilisation, more frequent changeovers, higher auxiliary loads, poor scheduling or equipment operating outside its efficient range.
The objective is not simply to reduce units consumed. It is to reduce unnecessary consumption while maintaining product quality, safety and throughput.
Management takeaway: If a plant cannot identify its highest-consuming processes and time periods, it will struggle to make informed decisions when energy conditions change.
4. Lesson Two: Shift Flexible Loads—Not the Entire Factory
Moving production away from a peak period can help in some circumstances. But a blanket instruction to shift every operation is rarely the right answer.
Manufacturing processes differ significantly. Some can be rescheduled with limited impact. Others require continuous operation, carefully controlled temperatures, fixed curing cycles or tightly sequenced production steps.
A better approach is to classify factory loads into three groups.
A. Flexible loads
These may be candidates for rescheduling, depending on operational constraints:
- Batch production that can be completed earlier.
- Non-urgent material handling or internal logistics.
- Charging of forklifts or other battery-powered equipment.
- Selected pumping, water-treatment or utility operations where storage and process requirements permit.
- Maintenance tasks that can be performed safely outside peak production hours.
- Pre-production preparation and selected secondary operations.
B. Conditionally flexible loads
These may be shifted only after checking technical and commercial implications:
- Air compressors and compressed-air systems.
- Chillers and cooling systems.
- Heat-treatment or thermal processes.
- Large motors and pumps.
- Injection moulding, machining and other production lines with complex sequencing.
- Processes where restarting requires significant warm-up time or creates scrap.
C. Critical or continuous loads
These should not be shifted casually:
- Safety-critical equipment.
- Essential environmental and process-control systems.
- Continuous-process production that cannot be interrupted without risk.
- Operations where shutdown or restart could damage equipment, materials or product quality.
- Loads required to maintain safe operating conditions.
The right decision depends on the process, not simply on the electricity meter.
A practical scheduling method
For each major load, ask:
- Can this operation run earlier or later?
- What is the cost of stopping and restarting it?
- Will a schedule change increase scrap, overtime or maintenance?
- Can the production target still be achieved?
- Does the change affect a customer delivery commitment?
- Is the revised schedule consistent with worker safety and applicable labour requirements?
A shift that saves electricity but increases scrap, overtime and delayed dispatches may not create a net business benefit.
Management takeaway: Reschedule flexible loads first, validate the savings, and protect continuous and safety-critical operations.
5. Lesson Three: Calculate the Real Cost of Electricity Per Unit
Electricity cost should be evaluated alongside production output.
A factory may reduce its total consumption and still become less efficient if output falls faster than electricity use. Conversely, a plant may increase total consumption while improving energy efficiency per unit because production rises more quickly.
Management should track at least two measures:
Energy intensity
Electricity consumed ÷ units of saleable production.
Electricity cost per unit
Electricity-related cost ÷ units of saleable production.
For a foundry, the measure might be electricity cost per tonne of good castings. For an automotive supplier, it could be cost per component. For a machine shop, it might be electricity consumed per productive machine hour or per accepted part.
Use a consistent definition of production output and include relevant electricity-related charges when calculating cost. Keep fixed charges, demand charges and variable consumption charges distinguishable where possible.
Illustrative calculation
Consider a factory that consumes 100,000 kWh in a month and produces 50,000 saleable units.
- Energy intensity: 2 kWh per unit.
- If the relevant average electricity cost is ₹9 per kWh, the illustrative energy cost is ₹18 per unit.
If a process improvement reduces consumption to 1.8 kWh per unit at the same electricity rate, the energy cost becomes ₹16.20 per unit.
That is a reduction of ₹1.80 per unit, or ₹90,000 across 50,000 units, assuming the production volume and applicable electricity rate remain unchanged.
This is an illustration, not a forecast of any particular factory’s savings. Actual costs depend on tariffs, demand charges, power factor, taxes, duties, fuel adjustments and the factory’s billing arrangement.
Why this matters during peak periods
A manufacturer considering a shift change should compare the total cost of each option—not just the electricity rate.
For example, moving production to another period may reduce electricity costs under a suitable tariff, but could also increase overtime, logistics costs or equipment start-up losses. The plant should calculate the net effect before implementing the change.
Management takeaway: The meaningful metric is not merely the electricity bill. It is the cost and energy required to produce each saleable unit.
6. Lesson Four: Eliminate Waste Before Investing in New Equipment
Reducing energy consumption does not always require replacing machinery or installing an expensive automation system.
A number of opportunities can be found through basic operational discipline and targeted maintenance.
Start with these checks
Compressed air: Inspect leaks, excessive pressure settings and compressors operating unnecessarily. Compressed-air systems can consume substantial electricity, particularly when leaks and poor control go unnoticed.
Idle machines: Identify machines left running during breaks, changeovers, waiting periods or periods without production. Shut down only where permitted by the process and manufacturer’s instructions.
Motors and pumps: Review motor loading, throttling, control methods and maintenance condition. Variable-speed drives may be appropriate for certain variable-load applications, but require an engineering and financial assessment.
Cooling and refrigeration: Check setpoints, condenser cleanliness, insulation, cooling-tower operation and the interaction between production schedules and cooling demand.
Lighting: Replace inefficient lighting where the investment is justified, and use occupancy controls in suitable areas without compromising safety or inspection requirements.
Power factor and electrical quality: Review power-factor performance, penalties or incentives, harmonics and voltage conditions with a qualified electrical professional. Corrective measures must be designed for the installation rather than selected by guesswork.
Preventive maintenance: Poor lubrication, misalignment, clogged filters and neglected equipment can increase energy consumption or cause unplanned downtime.
Prioritise improvements by payback
Create a list of potential measures and record:
- Estimated investment.
- Expected energy reduction.
- Expected maintenance or operational benefit.
- Implementation time.
- Impact on product quality and safety.
- Estimated payback period.
Start with low-cost improvements that can be measured and verified. Larger investments should follow a documented business case.
Management takeaway: The first energy-saving project should usually be a measurement and maintenance exercise—not an automatic decision to buy new machines.
7. Lesson Five: Review Backup Power and Business Continuity
Factories often have backup arrangements for power interruptions. But a generator or other backup system should not be treated as an unlimited substitute for grid electricity.
Backup power may involve higher fuel costs, maintenance, emissions, capacity constraints and restrictions on which loads can be supported.
A plant should determine:
- Which loads are essential for safe operation.
- Which loads must remain powered to prevent product or equipment damage.
- How long critical systems can operate on available backup arrangements.
- Whether restarting production after an interruption creates scrap or quality risks.
- Which customer orders are most sensitive to disruption.
- Whether backup capacity is adequate for the intended loads.
- Whether staff know the approved shutdown and restart sequence.
Build a simple power-contingency plan
Before an interruption: Review supply notices, check fuel and backup-system readiness, confirm critical-load priorities and brief the relevant shift leaders.
During an interruption: Follow the approved electrical and process-safety procedures. Do not bypass interlocks or attempt unsafe restarts to recover lost production.
After power returns: Restore equipment according to the approved sequence, verify process conditions, inspect work in progress and record any quality or production losses.
For plants with critical continuous processes, the contingency plan should be developed with qualified engineering, maintenance, safety and production teams.
Management takeaway: Business continuity depends on knowing what to protect first, how to shut down safely and how to restart without creating a second problem.
8. Lesson Six: Evaluate Solar, Storage and Demand Management Carefully
Renewable energy and energy-storage systems can form part of a factory’s long-term energy strategy. But the economics depend on when the electricity is generated, when it is consumed and what the factory’s tariff and load profile look like.
Rooftop solar can reduce grid consumption during suitable daylight hours. However, solar generation typically falls after sunset, precisely when evening demand may remain high.
Battery storage can shift some electricity from one period to another. Yet its usefulness depends on system cost, usable capacity, charging opportunities, efficiency losses, discharge duration, maintenance and the difference between the cost of charging and the value of electricity later.
Before investing, a manufacturer should assess:
- Daytime and evening electricity demand.
- Existing rooftop solar generation and self-consumption.
- The factory’s applicable tariff and demand charges.
- The size and duration of the loads that need support.
- Battery-system capital cost, usable capacity and round-trip efficiency.
- Safety, fire protection, space and maintenance requirements.
- Available incentives or regulatory requirements, verified for the particular project.
- The payback period under realistic operating scenarios.
A battery should not be purchased merely because evening electricity demand is high. It should be evaluated against other options, including production rescheduling, energy-efficiency measures, tariff optimisation and suitable backup arrangements.
Similarly, solar installations should be sized against actual consumption patterns, site conditions and the applicable regulatory framework.
Management takeaway: Solar and storage can improve resilience, but only a site-specific assessment can determine whether they make commercial sense.
9. Lesson Seven: Make Energy a Production-Planning Responsibility
Energy management is often assigned exclusively to the electrical or maintenance department. That can leave a gap between energy-saving opportunities and the production decisions that determine when electricity is consumed.
A more effective model connects energy data with daily production planning.
The plant head, production manager, maintenance team, finance team and energy manager should review the same basic information.
A practical daily energy dashboard
A factory can begin with a simple spreadsheet and expand later as its data maturity improves.
Metric
Why it matters
Total electricity consumption
Establishes the daily energy baseline
Peak demand
Identifies periods of high electrical load
Energy per saleable unit
Tracks energy efficiency
Production by shift
Connects consumption with output
Idle-machine consumption
Highlights avoidable use
Energy cost per unit
Shows the financial effect
Unplanned power interruptions
Measures supply-related disruption
Scrap or restart losses
Captures the production impact of interruptions
Renewable energy generated and used
Tracks actual on-site utilisation where applicable
The most useful dashboard is not the one with the largest number of charts. It is the one that helps managers take action.
For example, if electricity consumption rises sharply while output remains flat, the production and maintenance teams should investigate the cause. If a proposed shift change reduces peak demand but raises scrap, the plant should review the overall result rather than celebrating the electricity saving alone.
Where digitalisation can help
Energy meters, machine data, production records and maintenance systems can be brought together to give managers a clearer picture of energy performance.
A digital monitoring system can help identify unusual consumption, compare shifts, track energy intensity and alert teams to deviations from established operating limits.
More advanced analytics may help forecast demand or compare alternative production schedules, provided the underlying data is reliable and the system accounts for process constraints.
Technology does not replace engineering judgement. It makes relevant information easier to access and act upon.
Management takeaway: Energy efficiency improves when it becomes part of the daily production review—not an isolated monthly report.
10. A 30-Day Action Plan for Indian Manufacturers
Manufacturers do not need to launch a large capital project to begin improving energy readiness. A structured 30-day review can establish the baseline and identify the first opportunities.
Week 1: Establish the baseline
- Collect recent electricity bills and tariff details.
- Review available interval-meter or demand data.
- Map major energy-consuming equipment.
- Compare electricity consumption with production output.
- Check any current supply notices or instructions relevant to the plant.
Deliverable: A baseline report identifying the major loads, cost drivers and periods of high demand.
Week 2: Identify operational opportunities
- Conduct an energy walk-through.
- Inspect compressed-air systems, motors, pumps and cooling equipment.
- Identify idle consumption and avoidable operating hours.
- Classify production activities by flexibility and restart risk.
- Identify quick improvements that do not compromise safety or quality.
Deliverable: A prioritised list of energy-saving and scheduling opportunities.
Week 3: Test changes on a controlled basis
- Select one suitable line, process or utility system.
- Test a revised schedule only where technically and commercially appropriate.
- Compare energy use, production output, quality, overtime and delivery performance.
- Record the baseline and post-change results.
- Involve operators and supervisors in the evaluation.
Deliverable: A measured pilot showing whether the change created a genuine net benefit.
Week 4: Standardise and plan investments
- Review the pilot results with production, maintenance and finance.
- Create a daily or weekly energy dashboard.
- Assign ownership for each approved improvement.
- Establish a power-interruption response plan.
- Prepare business cases for any required meters, controls, solar or storage investments.
Deliverable: A practical energy-management roadmap with named owners, measurable targets and timelines.
11. What Should Small and Medium Manufacturers Do First?
For smaller manufacturers, the main constraint may not be a lack of ideas. It may be limited engineering capacity, limited capital or a lack of detailed energy data.
The first steps should therefore be proportionate to the size and complexity of the business.
A small machining unit might begin by recording electricity consumption, productive machine hours, idle time and output per shift.
A foundry could examine energy consumption per tonne of good castings, furnace operating patterns, compressed-air losses and the impact of production interruptions.
A plastics manufacturer might review machine utilisation, heating and cooling loads, compressor performance and changeover practices.
A textile unit could examine motors, pumps, compressed air, process heating and the scheduling of flexible operations.
A large automotive-component supplier may require sub-metering, demand forecasting, integrated production data and a formal energy-management programme.
The underlying principle remains the same: start with the largest measurable opportunity, test changes against production results, and invest only when the business case is clear.
Manufacturers should also check the applicable tariff, electricity distribution company’s communications, and any relevant state or central energy-efficiency programmes before committing to a specific intervention.
12. The Bigger Lesson: Energy Resilience Is Manufacturing Competitiveness
The Gujarat development is a reminder that factory performance depends on more than installed capacity, labour productivity and order books.
Energy availability, electricity tariffs, equipment efficiency and production flexibility all influence the final cost of manufacturing.
For a supplier competing for business from a major OEM, a power-related delay can affect delivery performance. For an MSME operating on tight margins, avoidable electricity consumption can weaken profitability. For an energy-intensive manufacturer, the ability to measure and manage demand can become an important operational advantage.
This does not mean every factory should immediately move production out of evening hours, install batteries or invest in a new energy-management platform.
It means manufacturers should know their consumption profile, understand the constraints of their processes, quantify the cost of interruptions and prepare practical options before a problem occurs.
The factories that manage energy well will be better positioned to make informed production decisions when conditions change.
Conclusion: Do Not Wait for a Power Constraint to Audit Your Factory
Gujarat’s appeal to factories to curb evening electricity use is a timely prompt for manufacturers to review how energy is managed inside their plants.
Start with the data. Identify the loads that consume the most electricity. Calculate energy cost per saleable unit. Eliminate avoidable waste. Review which operations can safely be rescheduled. Strengthen backup and restart procedures. Evaluate solar, storage and automation only after understanding the site’s real requirements.
Most importantly, connect energy performance with production planning, quality and delivery commitments.
The objective is not simply to use less electricity. It is to manufacture reliably, safely and profitably—with better control over one of the factory’s most important operating inputs.
Sources and Further Reading
- Reuters, 21 October 2026 — India’s top industrial state asks factories to curb power usage as demand surges.
https://www.reuters.com/business/energy/indias-top-industrial-state-asks-factories-curb-power-usage-demand-surges-2026-10-21/ - Reuters, 6 October 2026 — Indian states seek extra power to avoid outages as nighttime supply tightens.
https://www.reuters.com/business/energy/indian-states-seek-extra-power-avoid-outages-nighttime-supply-tightens-2026-10-06/
Editorial note: The Gujarat advisory and power-system context above reflect reporting available on 21 October 2026. Manufacturers should verify current instructions, applicable tariffs and local supply conditions with their electricity distribution company and relevant authorities. Operational recommendations in this article are general guidance; individual process changes should be validated by qualified personnel.
MFG Magazine
Manufacturing intelligence for India’s industrial decision-makers.
