Inox India Limited is a prominent manufacturer of cryogenic equipment and one of the leading cryogenic tank manufacturers in the world. They have over 30 years of experience offering solutions for cryogenic conditions. Their offering includes standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment and solutions as well as large turnkey projects used in diverse industries such as industrial gases, liquified natural gas, green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals and construction.
They also manufacture a range of cryogenic equipment utilised in global scientific research projects.
They were the largest exporter of cryogenic tanks from India in terms of revenue in Fiscal 2022.
Their business is comprised of three divisions:
Industrial Gas: This division manufactures, supplies and installs cryogenic tanks and systems for storage, transportation and distribution of industrial gases like such as green hydrogen, oxygen, nitrogen, argon, carbon dioxide (CO2), hydrogen and provides after-sales services.
LNG: This division manufactures, supplies and installs standard and engineered equipment for LNG storage, distribution and transportation as well as small-scale LNG infrastructure solutions suitable for industrial, marine and automotive applications;
Cryo Scientific: This division provides equipment for technology intensive applications and turnkey solutions for scientific and industrial research involving cryogenic distribution.
Strengths And Risks
+ Leading Supplier and Exporter of Cryogenic Equipment: In Fiscal 2022, Inox India Limited was the largest supplier of cryogenic equipment in India by revenues in Fiscal 2022 with four times the sales of the second largest player in the domestic market. They export to Further, with exports to 64 countries, Inox India is well placed to capitalize on global opportunities in cryogenic equipment.
+ International Quality Standards: They have developed and commercialized products and services spanning across the entire cryogenic value chain in industrial gases, LNG liquefaction plants and liquid hydrogen and maintain international quality benchmarks. They offer comprehensive solutions across design, engineering, manufacturing and installation of standard as well as customized cryogenic equipment and systems.
+ Diverisified and Global Client Base: Inox India provides equipment and systems to over 1,201 domestic customers and over 228 international customers across three divisions. They serve customers across industry sectors and geographies e.g. energy, industrial gases, LNG and LCNG, steel, medical and healthcare, chemicals and fertilizers, pharmaceuticals, aviation and aerospace, pharmaceuticals and construction, amongst others.
+ Strong Engineering and Development: The company is focused on product development and engineering with an inhouse engineering team to develop new products and solutions. The deep domain expertise gives them the ability to develop bespoke products and systems for customers.
+ Healthy Financial Performance: Inox India Limited has demonstrated consistent growth in terms of revenues and profitability. Their total income has increased at a CAGR of 27.13% from Rs. 608.9 Cr in Fiscal 2021 to Rs. 984.1 Cr in Fiscal 2023.
- Cryogen Leakage Risk: Due to cryogenic gases being stored at very low temperatures, their leakage poses health hazards and risks. Company may be exposed to potential warranty claims, product recalls and returns, and product liability claims.
- Stringent Environment & Safety Norms: Company's operations are subject to environmental and workers’ health and safety laws and regulations. They may have to incur costs to comply with these regulations or suffer liabilities in case of an incidence or non-compliance of environment and other similar laws and regulations.
- Supplier Risk: They rely on a number of third party suppliers for key components and materials. Any shortfall in supply or increase in raw material costs, or other input costs may adversely affect the pricing and supply of products.
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