Incorporated in 1976, INOX India Limited is India’s leading cryogenic equipment supplier. The company has over 30 years of experience in designing, manufacturing and installation of equipment for cryogenic conditions.
Cryogenic refers to the science of producing an effect of very low temperatures. Many gases like argon, carbon monoxide, fluorine, helium are stored under cryogenic conditions. The cryogenic temperature range is from -150°C to absolute zero. INOX India was the largest supplier of cryogenic equipment in India by revenue in fiscal year 2023.
The company’s product portfolio includes cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment and solutions as well as large turnkey projects. The company’s products cater to various industries such as industrial gases, liquified natural gas (LNG), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilisers, aviation and aerospace, pharmaceuticals and construction.
INOX India has clients in the domestic and international markets, including Air Liquide Global E&C Solutions, All Safe Global, Baif Development Research Foundation, CRYONiQ s.r.o., Gulf Cryo LLC, Hyundai Engineering and Construction, INOX Air Product, Carbacid (CO2), Navin Fluorine International, National Refrigerants Inc and more under the industrial gas division.
Since FY21, the company has offered services to 1,255 domestic and 254 international customers. It has a presence in 66 countries, including the United States, Saudi Arabia, the Netherlands, Brazil, Korea, United Arab Emirates, Australia and Bangladesh.
The company has three manufacturing facilities at Kalol in Gujarat, the Kandla Special Economic Zone in Gujarat and Silvassa in the Union Territory of Dādra and Nagar Haveli. Its Kalol and Kandla SEZ facilities are ISO-certified and hold global approvals.
The company has an order book of ₹1,036 crore as of 30 September 2023. Between FY21 and FY23, the company’s revenue from operations rose at a CAGR of 17%. Its net profit increased by 16% during the same period. Moreover, the demand for cryogenic equipment in India is expected to grow at a CAGR of over 7% between 2023 and 2028, driven by an increase in industrial output, investments in electronics and space sectors and the shift towards cleaner fuel sources, which could benefit the company.
And now, INOX India Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale, and the selling shareholders will receive the money raised in proportion to the shares they sell. Its shares will be listed on the NSE and the BSE.
Key Highlights
- India’s largest supplier of cryogenic equipment as of FY23. Cryogenic refers to the science of producing an effect of very low temperatures. Many gases like argon, fluorine, helium are stored under cryogenic conditions.
- Order book of ₹1,036 crore as of 30 September 2023.
- Between FY21 to FY23, the company saw a CAGR rise of 17% in its revenue from operations and 16% in its profit.
- Product portfolio includes cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment and solutions as well as large turnkey projects.
- Caters to various industries such as industrial gases, liquified natural gas (LNG), green hydrogen, energy, steel, medical and healthcare, and many others.
- Major customers include Air Liquide Global E&C Solutions, All Safe Global, Baif Development Research Foundation, CRYONiQ s.r.o., Caribbean LNG Inc, 2G Energy Inc, AGP City Gas, H-Energy Gateway and ISRO.
- Since FY21, the company has served 1,255 domestic and 254 international customers.
- Present in 66 countries including the United States, Saudi Arabia, the Netherlands, Brazil, Korea, United Arab Emirates, Australia and Bangladesh.
- Three manufacturing facilities located at Kalol in Gujarat, the Kandla Special Economic Zone in Gujarat and Silvassa in the Union Territory of Dādra and Nagar Haveli.
Strengths
- Leading supplier and exporter of cryogenic equipment and solutions.
- Diversified domestic and international customer base across industry sectors. In FY23, its top 10 customers contributed 46.5% of the company’s revenue.
- Large portfolio of specialised cryogenic equipment engineered to global quality standards with an installed capacity of 3,100 equivalent tank units and 2.4 million disposable cylinders as of FY23.
- History of high customer retention as it received 51%, 51% and 48% of its total revenue from operations from repeat customers in FY21, FY22 and FY23 respectively.
- Strong product development and engineering focus as it was the first Indian company to manufacture a trailer-mounted hydrogen transport tank jointly designed with ISRO.
- Healthy financial performance with an EBITDA margin of 24%, 23% and 22% in FY21, FY22 and FY23 respectively.
Risks and threats
- Products face inherent risk due to high pressures and low temperatures, such as cryogen leakage from equipment, which is hazardous to health.
- Manufacturing facilities are concentrated in the state of Gujarat and the union territory of Dadra and Nagar Haveli. Hence, any region specific issue could impact the company’s operations.
- Operates in a market that is subject to cyclical demand and vulnerable to economic downturn.
- Operations are subject to environmental and workers’ health and safety laws and regulations.
- It faces competition from Air Liquide Inc., Linde Plc, Chart Industries Inc., Air Products and Chemicals Inc., Emerson Electric Co., Shijiazhuang Enric Gas Equipment Company Ltd. and Taylor-Wharton.
You can now apply for the INOX India IPO on Upstox by clicking here.