INOX Air Wants To Invest Rs 3,000 Crore By 2025 To Accommodate Growing Demand.
INOX Air Products made a commitment to invest a total of Rs 3,000 crore by 2025, displaying its dedication to staying ahead in a sector that is rapidly growing and competitive
According to its managing director Siddharth Jain, INOX Air Products, India’s largest producer of industrial and medical gasses, wants to invest Rs 3,000 crore at ten facilities across the country by 2025 to meet the industry’s expanding demand across industries.
By strengthening its infrastructure, increasing operational effectiveness, and meeting the expanding demands of numerous industries, the company hopes to solidify its place in the market.
Due to the growth of important sectors including petroleum products, health care, steel, and India’s industrial gases industry has been expanding significantly.
Recognizing this growing trend, INOX Air Products, a division of INOX Group, plans to take advantage of the opportunities brought about by the rising need for industrial gases.
INOX Air Products intends to spend Rs 3,000 crore across ten facilities nationwide by 2025. 2 air separation units at Tata Steel’s Meramandali factory in Odisha, which would have a daily output capacity of 1,800 tonnes each of oxygen, nitrogen, and argon, will receive Rs 1,300 crore of this funding.
Managing the Demand
The increased demand for commercial and medicinal gases in India is another factor influencing INOX Air’s investment strategy.
Between the years 2020 and 2025, the industrial gas sector in India is anticipated to expand at a CAGR of 6.2%, propelled by the expansion of important sectors including healthcare, substances, metals, and communications.
Similarly to this, the growing demand for healthcare services is estimated to propel the medical gas market in India to develop at an annualized rate (CAGR) of 8.1% between 2020 and 2025.
INOX Air Products will also spend money on studies to raise the caliber and effectiveness of its goods.
By emphasizing innovation, the business hopes to offer technologically cutting-edge solutions that meet the changing needs of its clients.
INOX Air Products has obtained a contract with a 20-year term that includes supply and offtake assurances for this project, which will be the company’s biggest greenfield project at one location to date.
The same facility will be used to create liquid gases, which will be sold to a variety of smaller customers throughout the state and the eastern area
To manage the funding, a combination of internal accumulations and loans will be used.
The business serves a broad range of clients from metal production, cement, automobile, pharmaceutical, and numerous other expanding industries.
Industrial gases are expected to have exponential demand as a result of the rapid development of markets in more recent industries like semiconductors and solar.
The company has outpaced the median rate of expansion of the industrial gas industry through its partnership (JV) with Air Products, which is known as the largest hydrogen producer in the world, with a double growth rate that of GDP.
Development of the Infrastructure and Market Growth
INOX Air Products will build new production facilities in key cities around the nation to accommodate the growing demand.
To ensure proximity to important clients and lessen logistical difficulties, the company intends to focus on areas with a significant concentration of industries.
INOX Air Products will be able to better serve its customers and expand its market presence with the aid of this expansion strategy.
To improve operations and customer satisfaction, the investment will also be used to upgrade current systems, including distribution and storage networks.
INOX Air Products wants to maintain a strong position in the market by streamlining the distribution process and ensuring an uninterrupted supply of industrial gases across multiple sectors.
Development of Skills and Employment
The investment plans of INOX Air Products will not only support the expansion of the chemical gas industry but also create job opportunities.
A sizable number of employees in a variety of vocations, including trained and less skilled ones, will be created through the development of new manufacturing units and the expansion of current facilities.
This investment supports the Indian government’s goal of fostering skill development and job growth in the industrial sector.
Future Outlook
To address the growing demand for industrial gases, INOX Air Products has decided to invest a total of Rs 3,000 crore by 2025, demonstrating its devotion to staying ahead in an industry that is expanding quickly.
The company seeks to efficiently meet the changing needs of sectors like oil and gas, steel, and technology by increasing its manufacturing capabilities, modernizing infrastructure, and putting a strong emphasis on innovation.
The expenditure not only improves INOX Air Products’ competitiveness but also aids in the expansion of India’s industrial gas market as a whole.
Business is crucial to advancing the goals of the nation’s economic development as it grows its operations and creates job opportunities.
INOX Air Products seeks to increase its production capacity, boost operational effectiveness, and guarantee a consistent supply of industrial exhaust gases to its clients through its strategic investments.
The company’s long-term goal is to further establish its position as a market leader in India by turning into a dependable partner for businesses looking for high-quality, cutting-edge gases.
Proofread & Published By Naveenika Chauhan
