According to its managing director, Siddharth Jain, INOX Air Products, India's largest manufacturer of industrial and medical gases, wants to invest Rs 3,000 crore in ten locations nationally by 2025 to accommodate the industry's expanding demand across industries.
"It's a watershed moment for us because it's our largest greenfield project at a single site to date." "We have a 20-year contract with supply and offtake guarantees," Jain explained. "In addition, we will use the same facility to produce liquid gases for a variety of smaller consumers in Orissa and the eastern region." He stated that the Rs 3000 crore investment will be funded by a combination of internal accruals and debt.
According to Jain, the expansion strategy is consistent with the country's strong economic growth. "Our company has grown at twice the rate of GDP, exceeding the typical growth rate of the industrial gases sector, which is usually 1.5 times GDP." "The industrial gases sector will experience accelerated growth as India attracts more manufacturing companies, particularly as the 'China plus one' model gains traction among MNCs," he said.
As enterprises begin a new capital expenditure cycle and new areas such as solar and semiconductors emerge, demand for industrial gases in India will match that of established markets, according to the CEO of INOX Air Products. "Because we serve a diverse customer base across sectors such as metal manufacturing, cement, automotive, pharmaceuticals, healthcare, and more, we serve as a reliable gauge of India's manufacturing capacity growth." We are seeing high demand in both traditional and emerging industries. "As countries progress and develop, the demand for industrial gases grows exponentially," added Jain.