INOX INDIA LIMITED

IPO NOTE
December 2023
 ISSUE HIGHLIGHTS
Issue Details
❑ Inox India Limited (“Inox India”) was incorporated on December 21, 1976. The part
Offer for Sale of 22,110,955 Equity Shares
of Inox Group, Inox India is the largest supplier of cryogenic equipment in India by
revenue in Fiscal 2023. Inox India has over 30 years of experience offering Issue summary
solutions across design, engineering, manufacturing and installation of Issue size: ₹ 1,386 – 1,459 Cr
equipment and systems for cryogenic conditions. Company’s offering includes No. of shares: 22,110,955 Equity Shares
standard cryogenic tanks and equipment, beverage kegs, bespoke technology, Face value: ₹ 2/-
equipment, and solutions as well as large turnkey projects which are used in Price band: ₹ 627 - 660
diverse industries such as industrial gases, liquified natural gas (“LNG”), green Bid Lot: 22 Shares and in multiple thereof
hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, Post Issue Implied Market Cap =
aviation and aerospace, pharmaceuticals, and construction. In addition, they ₹ 5,691 – 5,990 Cr
manufacture a range of cryogenic equipment utilised in global scientific research
projects. Also, they were the largest exporter of cryogenic tanks from India in BRLMs: Axis Capital, ICICI Securities
terms of revenue in Fiscal 2023. Registrar: KFin Technologies Ltd
Issue opens on: Thursday, 14th Dec’2023
st
❑ Inox India is the 1 Indian company to manufacture a trailer mounted hydrogen Issue closes on: Monday, 18th Dec’2023
transport tank, which was designed jointly with the Indian Space Research
Indicative Timetable
Organisation (“ISRO”). Inox India produced and shipped a 238kl liquid hydrogen
storage tank for a liquid hydrogen plant in South Korea. They also have recently Activity On or about
Finalisation of Basis of Allotment 19-12-2023
produced & shipped four 311kl liquid hydrogen storage tanks for another
Refunds/Unblocking ASBA Fund 20-12-2023
customer in South Korea for the construction of 3 liquid hydrogen plants.
Credit of equity shares to DP A/c 20-12-2023
Trading commences 21-12-2023
❑ Due to their engineering expertise, quality product offering and customer
Issue break-up
service, they have developed a reputed brand, INOXCVA, in the cryogenic
₹ In Cr
equipment industry. In the Fiscal 2023 they have Installed Capacity of 3,100 No. of Shares % of
@Lower @Upper Issue
Equivalent Tank Units (which are cryogenic storage tanks of 10,000 litres), 2.4
QIB 11,055,476 693.18 729.66 50%
million disposable cylinders, 14 certifications from United States, Europe, NIB 3,316,644 207.95 218.90 15%
Australia and other international markets. -NIB2 2,211,096 138.64 145.93 -
-NIB1 1,105,548 69.32 72.97 -
❑ Inox India has 3 manufacturing facilities located at (i) Kalol in Gujarat, (ii) the RET 7,738,835 485.22 510.76 35%
Kandla Special Economic Zone (“Kandla SEZ”) in Gujarat and (iii) Silvassa in the Total 22,110,955 1,386.36 1,459.32 100%
Union Territory of Dadra and Nagar Haveli. NIB-1=NII Bid between ₹ 2 to 10 Lakhs
NIB-2 =NII Bid Above ₹ 10 Lakhs
❑ They provided their equipment and systems to over 1,201 domestic customers NII-Bid NII - Bid
and over 228 international customers across the 3 divisions. Retail between ₹ Above ₹ 10
Category Category 2 - 10 Lakhs Lakhs
Minimum Bid 22 308 1,518
❑ The company also has built a strong international customer base. Currently they
Lot (Shares) Shares Shares Shares
are exporting their products and delivering their services to 66 countries.
Minimum Bid
₹ 14,520^ ₹ 2,03,280^ ₹10,01,880^
BRIEF FINANCIAL DETAILS* (₹ IN CR) Lot Amount (₹)
351,765 3,589 7,179
As at Sep’30, As at Mar’ 31, Appl for 1x
Applications Applications Applications
2023 (06) 2022 (06) 2023 (12) 2022 (12) 2021 (12)
Listing: BSE & NSE
Share Capital 18.15 18.15 18.15 18.15 9.08
Reserves 536.09 461.79 531.32 484.13 362.44 Shareholding (No. of Shares)
Net Worth 554.24 479.94 549.48 502.28 371.51 Pre-Offer and Post-Offer Equity Shares
Revenue from Operations 564.61 486.80 965.90 782.71 593.80 No of shares 90,763,500
Revenue Growth (%) 15.98% - 23.40% 31.81% -
Shareholding (%)
EBITDA 145.74 119.88 222.65 188.63 149.70
Pre- Post-
EBITDA Margin (%) 25.13% 24.24% 22.62% 23.47% 24.58%
Issue Issue
Profit before Tax 136.17 112.04 205.05 174.21 131.07 Promoter 91.51% 67.67%
Net Profit for the period 103.34 83.42 152.71 130.50 96.11 Promoter Group 7.79% 7.33%
Net Profit Margin (%) 17.82% 16.87% 15.52% 16.24% 15.78% Public – Other Selling S/h 0.24% 0.18%
EPS – Basic & Diluted (₹) 11.39^ 9.19^ 16.83 14.38 10.59 Public - Others 0.46% 24.82%
RONW (%) as stated 18.64%^ 17.38%^ 27.79% 25.98% 25.87% Total 100.00% 100.00%
Net Asset Value (₹) 61.06^ 52.88^ 60.54 55.34 40.93
ROCE (%) 23.75% 22.57% 36.53% 33.70% 35.15%
Source: RHP, *Restated Statement, ^ not annualised, # EBITDA and Net Profit Margin calculated on Total Income

For additional information & risk factors please refer to the Red Herring Prospectus -1-
 BACKGROUND
Company and Directors
The Company was incorporated as “Baroda Oxygen Limited” at Gujarat, on December 21, 1976. The company was promoted
by Pavan Kumar Jain, Nayantara Jain, Siddharth Jain and Ishita Jain. Currently, the promoters together hold 83,058,000 Equity
Shares, representing 91.51 % of the issued, subscribed and paid-up Equity Share capital of the company.
Brief Biographies of Directors
Pavan Kumar Jain is the Promoter, Chairman and Non-Executive Director of the company. He has been associated with the
company since April 16, 1979. He has approximately 30 years of experience in the cryogenic engineering and high vacuum
technology industry.

Siddharth Jain is the Promoter, Non-Executive Director (Non-Independent) of the company. He has been associated with the
company since March 17, 2004. He has approximately 18 years of experience in the cryogenic engineering and high vacuum
technology industry.

Parag Kulkarni is the Executive Director of the company. He has been associated with the company since July 16, 1992. He has
approximately 30 years of experience in the cryogenic engineering and high vacuum technology industry.

Ishita Jain is the Non-Executive Director of the company. She has been associated with the company since August 12, 2021.

Amit Advani is the Non-Executive and Independent Director of the company. He has been associated with the company since
July 16, 2022. He has approximately 23 years of experience in managing international business relationships.

Girija Balakrishnan is the Non-Executive and Independent Director of the company. She has been associated with the company
since July 16, 2022.

Richard Boocock is the Non-Executive and Independent Director of the company. He has been associated with the company
since July 16, 2022. He has more than 25 years of experience as a chartered chemical engineer.

Shrikant Somani is the Non-Executive and Independent Director of the company. He has been associated with the company
since July 16, 2022. He has approximately 20 years of experience in renewable energy and small hydropower.

Key Managerial Personnel

Pavan Logar, is the Chief Financial Officer of the company. He joined the company on September 10, 1993. He has over 35
years of experience in accounts and taxation. Prior to joining the company, he has worked with Mangalam Cement Ltd.

Deepak Acharya is the Chief Executive Officer of the company. He joined the company on November 29, 1992. He has over 30
years of experience in welding.

Kamlesh Shinde is the Company Secretary and Compliance Officer of the company. He joined the company on June 19, 2023.
He has over 8 years of experience in secretarial and compliance matters.

OFFER DETAILS
The Offer for Sale by: Upto 22,110,955 Equity Shares WACA per Equity Share (₹)
The Promoter Selling Shareholders:
Siddharth Jain Upto 10,437,355 Equity Shares 5.36
Pavan Kumar Jain Upto 5,000,000 Equity Shares 2.15
Nayantara Jain Upto 5,000,000 Equity Shares 1.10
Ishita Jain Upto 1,200,000 Equity Shares 1.00
The Promoter Group Shareholders:
Manju Jain Upto 230,000 Equity Shares 4.85
Lata Rungta Upto 190,000 Equity Shares 0.13
The Other Selling Shareholders:
Bharti Shah Upto 13,400 Equity Shares 0.50
Kumud Gangwal Upto 13,400 Equity Shares 0.50
Suman Ajmera Upto 13,400 Equity Shares 0.50
Rajni Mohatta Upto 13,400 Equity Shares 0.50
WACA = Weighted Average Cost of Acquisition

For additional information & risk factors please refer to the Red Herring Prospectus -2-
 SHAREHOLDING PATTERN
Pre-offer Post-offer
Number of % of Total Equity Offer for Number of % of Total Equity
Shareholders Equity Shares Share Capital Shares Equity Shares Share Capital
Promoter 83,058,000 91.51% 21,637,355 61,420,645 67.67%
Promoter Group 7,071,980 7.79% 420,000 6,651,980 7.33%
Total for Promoter and Promoter Group 90,129,980 99.30% 22,057,355 68,072,625 75.00%
Public – Other Selling Shareholders 213,320 0.24% 53,600 159,720 0.18%
Public – Other 420,200 0.46% 22,531,155 24.82%
Total for Public Shareholders 633,520 0.70% 53,600 22,690,875 25.00%
Total Equity Share Capital 90,763,500 100.00% 22,110,955 90,763,500 100.00%

BUSINESS OVERVIEW
Inox India Limited (“Inox India”) is the largest supplier of cryogenic equipment in India by revenue in Fiscal 2023. They have
over 30 years of experience offering solutions across design, engineering, manufacturing and installation of equipment and
systems for cryogenic conditions. Company’s offering includes standard cryogenic tanks and equipment, beverage kegs,
bespoke technology, equipment, and solutions as well as large turnkey projects which are used in diverse industries such as
industrial gases, liquified natural gas (“LNG”), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers,
aviation and aerospace, pharmaceuticals, and construction. In addition, they manufacture a range of cryogenic equipment
utilised in global scientific research projects. Also, they were the largest exporter of cryogenic tanks from India in terms of
revenue in Fiscal 2023.

The demand for cryogenic equipment across geographies is expected to be driven by the increased demand for cleaner fuels
such as LNG and hydrogen due to the global focus on reducing carbon emissions from conventional energy sources. They are
well positioned to capture this global market growth with their inhouse technology as well as their LNG product range that
includes the entire value chain. In hydrogen, their engineering teams are developing products and systems in complex industry
environments like hydrogen storage, transportation and distribution to address the need for large scale movements of liquid
hydrogen. For example, they were the 1st Indian company to manufacture a trailer mounted hydrogen transport tank, which
was designed jointly with the Indian Space Research Organisation (“ISRO”). Inox India produced and shipped a 238kl liquid
hydrogen storage tank for a liquid hydrogen plant in South Korea. They also have recently produced & shipped four 311kl
liquid hydrogen storage tanks for another customer in South Korea for the construction of 3 liquid hydrogen plants.

As at October 31, 2023, their sales and marketing team had 36 employees who were involved in sales, pre-sales and marketing
activities. As at October 31, 2023, they had sales offices in Vadodara, São Paulo, Brazil (subsidiary office) and Alblasserdam,
the Netherlands (subsidiary office).

As of October 31, 2023, Inox India had filed 4 patent applications in India. Further, currently, they had 36 registered trademarks
in India, 1 pending trademark applications and 1 pending copyright application.

BUSINESS DIVISIONS
Inox India designs, manufacture and install cryogenic storage, distribution and transportation equipment and systems (both
standard and engineered for customers). Their equipment and systems are used in industries such as energy, industrial gases,
LNG and LCNG steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals and
construction, amongst others.

Company’s business is comprised of 3 divisions: Industrial Gas, LNG and Cryo Scientific
Industrial Gas
In the Industrial Gas Division, the company design, manufacture, supply and install storage tanks, transport tanks, microbulk
units, vaporizers, cryo bio tanks, refrigerant cylinders, and beverage kegs. Their solutions focus on cryogenic tanks and systems
for liquid industrial gases including liquid hydrogen, liquid nitrogen, liquid oxygen, liquid argon, liquid carbon dioxide, LNG,
and ethylene oxide.

The industrial gas division also includes an EPC business for cryogenic solutions including bulk storage and regasification
equipment, typically associated with petrochemical or steel projects.

• Storage tanks

For additional information & risk factors please refer to the Red Herring Prospectus -3-
 • Bulk tanks: The company offers a complete range of bulk storage tanks for liquefied nitrogen, oxygen, argon, carbon
dioxide, nitrous oxide, and a special range for hydrogen, LNG and ethylene in various pressure rating and piping
configurations, depending on applications.

• Engineered Package Systems: The company offers turnkey solutions for engineered package systems. Their systems
are designed for various process applications and specialized applications. Equipment designed by them includes
flat bottom tanks (“FBT”), vacuum insulated storage tanks (“VIST”), super insulated transfer piping, steam bath
vaporizers, regulating skids for liquid hydrogen, oxygen, nitrogen, argon, CO2 and N2O.

• Transport tanks

The company provides a complete range of transport tank options for liquefied nitrogen, oxygen, argon, carbon dioxide,
nitrous oxide, apart from special range for hydrogen, LNG and ethylene. They manufacture cryogenic tankers in various
capacities for transportation for liquid hydrogen, nitrogen, oxygen, argon, liquid carbon dioxide, liquid nitrous oxide, and
ethylene. These tankers are vacuumed with multi-layered super-insulation for efficient and cost-effective transportation
covering short and long distances.

• Semi-trailers: The company design and manufacture semi-trailers for transporting large volumes of gases. Their
semi-trailers feature austenitic stainless-steel inner and outer vessels for transportation.

• ISO containers: Company’s ISO containers are widely used to transport cryogenic liquids in bulk quantities through
road, rail, and sea. They are designed for the transportation of liquid nitrogen, liquid oxygen, liquid argon, liquid
carbon dioxide, liquid nitrous oxide, and LNG.

• Microbulk Units

Company’s microbulk units are used to store large quantities of gases in cryogenic conditions to reduce need for handling high-
pressure gas cylinders. Their microbulk unit portfolio is marketed under the brands Portacryo and Mircocyl.

• Vaporizers

The company manufactures ambient air vaporizers and capacities for various customer applications. they also offer steam
bath vaporizers.

• Cryo Bio

The company offers a range of cryo bio products under their brand Cryoseal that serve dairy organizations, animal husbandries,
cattle breeding farms, infertility clinics for semen preservation for artificial insemination and livestock breeding. Their cryo bio
products are also sourced by several pharmaceutical companies for the storage of biological samples for medical research and
vaccine preservation.

• Refrigerant Cylinders

The company manufactures disposable and non-refillable cylinders for gases. Their disposable cylinders are used to store
refrigerants. They are manufactured and certified as per DOT 39 specifications and customized to their customers branding.

• Beverage Kegs

The beverage kegs have been widely used in food & beverage industry to store beer, syrups and other beverages, which remain
unaltered during storage, regardless of its handling and climate conditions.

On August 3, 2022, Inox India signed a technology license agreement with Supermonte SRL of Italy for manufacture of stainless-
steel beverage kegs using the Supermonte brand and technology. They are planning to set up a serial production facility to
produce these stainless-steel beverage kegs at Savali, near Vadodara.

LNG Division
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.
LNG plants are typically located near the natural gas sources, and LNG is carried in large bulk carrier worldwide to receiving
terminals located in different countries. Their product range starts from taking the cryogenic LNG at the receiving terminal for
small scale and mobile users to transportation and then distribution to the end-user.

• Industrial applications

For additional information & risk factors please refer to the Red Herring Prospectus -4-
 The company manufactures LNG satellite stations, re-gas systems and other applications for heating, power and feedstock for
industrial applications. They have supplied LNG storage tanks, vaporizing system, and re-gas systems to customers in India.

• Mini LNG Infrastructure

The company offers mini-LNG terminal solutions from concept to commissioning, including design, development, and site
implementation. In addition, they offer small-scale LNG cargo delivery systems for distribution of LNG in areas where
constructing pipelines is not feasible or economically viable. They also offer small-scale floating storage and re-gas units
(“FSRU”), which are specially engineered units that cater to small and medium scale LNG needs in
power plants, local gas grids and other industrial uses.

• High horsepower applications

The company offers high horse-power applications for LNG marine fuel gas systems, LNG rail locomotive fuel gas systems and
mining truck LNG tanks. They have supplied six 770m3 LNG fuel gas tanks to for ships. They also developed LNG tanks for a
3000 m3 bunker barge with 4 750m3 vacuum insulated LNG type C tanks. In addition, they are an OEM supplier of LNG fuel gas
tanks for mining off road vehicles.

• LNG Systems and Equipment

The company design, manufacture and install LNG storage and re-gas systems for industrial, marine, mining and rail
applications as well as equipment like storage tanks, ambient air vaporizers, vacuum insulated piping, semitrailers etc.

• Automotive

For the automotive sector, the company provides LNG fuelling stations and LCNG fuelling stations to their oil & gas customers.
They also offer a full range of LNG vehicle fuel tanks from 200 litres to 990 litres. These tanks have been built to suit Indian
heavy-duty trucks and to fill the need for local availability.

Cryo Scientific Division

Company’s Cryo Scientific Division supplies specialized engineered equipment to support scientific applications. Their Cryo
Scientific Division offers product development initiatives, applications, and turnkey solutions for scientific and industrial
research. Their activities are focused on satellite and launch facilities, cryogenic propulsion systems and research and fusion
and superconductivity.

• Satellite and Launch Facilities:

The company has involved in a number of space projects, and they have developed a number of cryogenic storage and handling
systems.

• Cryogenic propulsion system and research

They engage in the research and development of cryogenic propulsion systems. Their projects in this area have include
developing fluid servicing systems for test stands, developing, manufacturing, testing, and supplying ambient heaters and
vaporizers for liquid hydrogen, ultra-high pressure large capacity storage systems for liquid hydrogen, liquid nitrogen and liquid
oxygen and design, development, testing and supply of gaseous hydrogen and helium coolers and ambient heaters.

• Fusion and superconductivity

The company has researched and developed cryogenic distribution systems that include superconducting magnets and
cryopumps. Their systems include cryolines for cryogenic fluid handling, systems for cooling super-conducting magnets and
super-conducting magnets for MRI systems. They are also engaged as one of the few Indian companies in the International
Thermonuclear Experimental Reactor (“ITER”) project, which is an international nuclear fusion research and engineering
megaproject. They have also been involved in the ITER project, which is an international nuclear fusion research and
engineering megaproject. ITER entrusted the company with the design, manufacturing, packing, supply, installation, and
acceptance tests of the ITER warmlines at the ITER site in France. They have also developed the displacement decoupling
arrangement for piping systems for cryolines and warm-lines project of ITER.

ORDER BOOK
As at September 30, 2023 company’s Order Book was ₹1,036.61 crore. The “Order Book” comprises anticipated revenues from
the unexecuted portions of existing contracts (which are accepted contracts for which all pre-conditions have been met). They
are led by a qualified and experienced management team that has the expertise and vision to manage and grow their business.
The company commissioned their Kalol facility in Fiscal 1992 and has undergone organic and inorganic growth to become a

For additional information & risk factors please refer to the Red Herring Prospectus -5-
 global cryogenic equipment solution provider. They are part of the INOX group (including companies in the industrial gas
sector) with revenues of over ₹3,176.03 crore in Fiscal 2023.

The summary of the Order Book by division as at September 30, 2023:

Particulars By Division Outstanding as at Sep’ 30, 2023 (in ₹ Cr) % of Total Order Book
Industrial Gas 547.54 52.82%
Liquified Natural Gas 260.84 25.16%
Cryo Scientific 228.23 22.02%
Total 1,036.61 100.00%

KEY CUSTOMERS
Company’s Industrial Gas Division designs, manufactures, supplies, and installs vacuum insulated cryogenic storage tanks and
systems for the storage, distribution, and transportation of industrial gases. They design and manufacture customized
cryogenic storage tanks and systems for their customers’ requirements as well as standard storage tank in accordance with
industry standards. The storage tank offering includes stationery storage tanks from 1,000 litres to one million litres capacity,
portable storage tanks from 1 litre to 1,000 litres capacity and transport tanks and tankers/trailers up to 60,000 litres capacity.
Their product line also includes vaporizers of various types and skid mounted piping skids for pumping and regasification. They
also provide engineering, procurement, and construction (“EPC”) services for cryogenic solutions including bulk storage and
regasification equipment, typically associated with petrochemical or steel projects. The company currently manufacture
beverage kegs using the NSF certified stainless steel material, and the company is implementing the project by entering into
technology and marketing alliances with international industry players.

The LNG Division designs, manufactures, and installs standard and engineered solutions for LNG and liquid compressed natural
gas (“LCNG”) including static storage tanks up to one million litres capacity, transport trailers, LNG satellite stations for
industrial users, marine fuel tanks, LNG and LCNG fuel stations and LNG vehicle fuel tanks. In the LNG tank segment, they have
supplied over 60% of the tanks in both the stationary, and trailer mounted mobile LNG tanks in India which have a valid PESO
license as of May 4, 2022, supplied between 1996 to May 2022. They also offer operation and maintenance for their LNG
solutions.

The Cryo Scientific Division designs, manufactures and installs equipment for technology intensive industrial applications and
turnkey solutions for scientific and industrial research involving cryogenic distribution. Their activities are focused on
customized cryogenic storage and distribution systems for space research, cryogenic fuel filling systems for launch pads, space
simulation chambers, vacuum jacketed piping and cryostat for magnetic resonance imaging (“MRI”) magnets. They are also
engaged as one of the few Indian companies in the International Thermonuclear Experimental Reactor (“ITER”) project, which
is an international nuclear fusion research and engineering megaproject.

Industrial Gas Division LNG Division Cryo Scientific Division

• Air Liquide Global E&C Solutions India Pvt Ltd, • Caribbean LNG Inc, • ISRO
• All Safe Global, • 2G Energy Inc,
• Baif Development Research Foundation, • AGP City Gas Pvt Ltd;
• CRYONiQ s.r.o., • H-Energy Gateway Pvt. Ltd;
• Gulf Cryo LLC, • Hoglund Gas Solutions AS,
• Hyundai Engineering and Construction Co Ltd, • IRM Energy Ltd;
• INOX Air Product Pvt Ltd, • Saint Gobain India Pvt Ltd;
• Carbacid (CO2) Ltd, • Shell Energy India Pvt Ltd;
• Navin Flourine International Ltd, • Think Gas Distribution Pvt Ltd,
• National Refrigerants Inc, • Ultra Gas & Energy Ltd.
• Pentrade Global LLC,
• Prodair Air Products India Pvt Ltd,
• SK ecoengineering Co. Ltd,
• StemCyte India Therapeutics Pvt Ltd,
• Synergy Gases (K) Ltd.

The company also has built a strong international customer base. Currently they are exporting their products and delivering
their services to 66 countries. Some of the key geographies for their products and services include the United States, Saudi
Arabia, the Netherlands, Brazil, Korea, United Arab Emirates, Australia and Bangladesh.

For additional information & risk factors please refer to the Red Herring Prospectus -6-
 6 months ended Sep’30, Fiscal
2023 2022 2023 2022 2021
Amount % Amount % Amount % Amount % Amount %
Particulars (₹ Cr) Share (₹ Cr) Share (₹ Cr) Share (₹ Cr) Share (₹ Cr) Share
United States 69.09 12.24% 71.22 14.63% 153.48 15.89% 90.17 11.52% 48.71 8.20%
Antigua and Barbuda 59.19 10.48% 15.42 3.17% 39.70 4.11% - - - -
Saudi Arabia 28.83 5.11% 10.28 2.11% 27.53 2.85% 17.02 2.17% 12.21 2.06%
Japan 9.62 1.70% 0.10 0.02% 24.41 2.53% 8.38 1.07% - -
Norway 0.21 0.04% 16.35 3.36% 33.37 3.46% - - 0.83 0.14%
Export to Others 184.14 32.61% 72.26 12.80% 164.16 17.00% 152.82 19.52% 144.00 24.25%
Total Exports 351.07 62.18% 185.62 38.13% 442.65 45.83% 268.39 34.29% 205.74 34.65%

The company has a history of high customer retention. The consolidated revenue from operations from the repeat
customers:
6 months ended Sep’30, Fiscal
2023 2022 2023 2022 2021
% of % of % of % of % of
Revenue Revenue Revenue Revenue Revenue
Amount from Amount from Amount from Amount from Amount from
Particulars (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations
Repeat
180.04 31.89% 307.77 63.22% 469.74 48.63% 401.05 51.24% 303.41 51.10%
Customers
Repeat customers are customers from which the company has revenues in the 6 months ended September 30, 2023, and 2022 and the prior 3 Fiscal years.

The consolidated revenue from operations from Top-20 customers, Top-10 customers and largest customer:
6 months ended Sep’30, Fiscal
2023 2022 2023 2022 2021
% of % of % of % of % of
Revenue Revenue Revenue Revenue Revenue
Amount from Amount from Amount from Amount from Amount from
Particulars (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations
Top-20 Customers 410.85 72.77% 321.45 66.03% 584.90 60.55% 373.87 47.77% 306.41 51.60%
Top-10 Customers 316.04 55.97% 241.68 49.65% 449.30 46.52% 282.65 36.11% 232.87 39.22%
Largest Customer 81.23 14.39% 63.50 13.04% 111.66 11.56% 71.47 9.13% 70.49 11.87%

REVENUE FROM OPERATIONS

(₹ in Cr)
6 months ended Sep’30, For the year ended 31st March,
Particulars 2023 2022 2023 2022 2021
Sales of Products 531.04 443.99 880.50 711.58 541.07
Sale of Services 22.02 28.61 58.07 46.47 39.46
- Job Work Sales 20.98 27.90 55.86 43.15 32.98
- Income from transportation of LNG 1.04 0.71 2.21 3.32 6.48
Other Operating Income 11.56 14.20 27.32 24.67 13.27
- Scrap Sales 8.37 12.57 23.23 22.48 8.96
- Export Incentives 3.19 1.63 4.09 2.19 4.31
Total Revenue from Operations 564.61 486.80 965.90 782.71 593.80
6 months ended Sep’30, Fiscal
2023 2022 2023 2022 2021
% of % of % of % of % of
Revenue Revenue Revenue Revenue Revenue
Amount from Amount from Amount from Amount from Amount from
Particulars (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations
Industrial Gas 361.35 64.00% 335.00 68.82% 684.61 70.88% 620.59 79.29% 375.67 63.27%
LNG 172.35 30.53% 116.75 23.98% 240.41 24.89% 125.85 16.08% 147.32 24.81%
Cryo Scientific 30.91 5.47% 35.05 7.20% 40.88 4.23% 36.27 4.63% 70.81 11.92%
Revenue from
564.61 100.00% 486.80 100.00% 965.90 100.00% 782.71 100.00% 593.80 100.00%
Operations

For additional information & risk factors please refer to the Red Herring Prospectus -7-
 MANUFACTURING UNITS
Inox India has 3 manufacturing facilities located at (i) Kalol in Gujarat, (ii) the Kandla Special Economic Zone (“Kandla SEZ”) in
Gujarat and (iii) Silvassa in the Union Territory of Dadra and Nagar Haveli. In the 6 months ended September 30, 2023, and in
Fiscal 2023, Fiscal 2022, and Fiscal 2021, their installed capacity of cryogenic tanks and related items was 1,550, 3,100, 3,100
and 2,200 Equivalent Tank Units (which are cryogenic storage tanks of 10,000 litres), respectively, and 1.2 million, 2.4 million,
2.4 million and 1.4 million disposable cylinders, respectively.

They have a 1.65MW windmill in the Bhachau district near Kutch, Gujarat that generates power for their Kalol facility. The
Kalol and Kandla SEZ facilities have been certified ISO 9001:2015, ISO 14001: 2015 and ISO 45001-2018. In the 6 months ended
September 30, 2023, and in Fiscal 2023, Fiscal 2022 and Fiscal 2021, their inhouse team has developed cryogenic containers
that comply with ISO containers standards, LNG fuel stations, LNG/LCNG fuel stations, LNG fuel tanks, liquid hydrogen storage
tanks, cryogenic biological storage and beverage kegs. During the last 5 years, they have added new products: liquid hydrogen
storage tanks, LNG dispensers, LNG fuel tanks and aluminium trailers. They also have obtained global approvals and
certifications including the ASME’s ‘U’ Stamp, and approval under EN 13458, 13530 and Australian standard AS 1210.

Capacity Production and Utilization

As of, and for the 6 months
ended Sep’ 30 As of, and for year ended March 31,
2023 2023 2022 2021
Annual Annual Annual Annual
Annual Actual Capacity Annual Actual Capacity Annual Actual Capacity Annual Actual Capacity
Installed Produc- Utiliza- Installed Produc- Utiliza-tion Installed Produc- Utiliza- Installed Produc- Utiliza-
Capacity tion tion (%) Capacity tion (%) Capacity tion tion (%) Capacity tion tion (%)
Cryogenic tank and related items (Equivalent Tank Unit numbers)
1,550 955 61.61% 3100 2172 70.06% 3100 2544 82.00% 2200 1671 75.94%
Disposable cylinders (numbers)
1,250,000 732,709 58.62 2,400,000 1,997,550 83.23% 2,400,000 1,860,166 77.50% 14,00,000 1,393,156 99.51%

Revenue from operations by manufacturing facility:

6 months ended Sep’30, Fiscal
2023 2022 2023 2022 2021
% of % of % of % of % of
Revenue Revenue Revenue Revenue Revenue
Amount from Amount from Amount from Amount from Amount from
Division (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations (₹ Cr) operations
Kalol 327.03 57.92% 348.69 71.63% 669.41 69.30% 620.19 79.24% 454.61 76.56%
Kandla SEZ 196.59 34.82% 101.32 20.81% 223.49 23.14% 120.12 15.35% 102.76 17.31%
Silvassa 17.12 3.03% 28.97 5.95% 56.67 5.87% 37.11 4.74% 29.13 4.91%
Others 23.87 4.23% 7.82 1.61% 16.33 1.69% 5.30 0.68% 7.30 1.23%
Revenue from
564.61 100.00% 486.80 100.00% 965.90 100.00% 782.71 100.00% 593.80 100.00%
Operations

COMPETITIVE STRENGTHS
• Leading Indian supplier and exporter of cryogenic equipment and solutions

The nature of the industry requires specialized handling and technologically intensive solutions. Their range of cryogenic
equipment which spans the entire cryogenic value chain in their focus sectors. Their investment in product development and
engineering that allows them to customize their equipment and systems to meet the customers’ requirements; and Their
presence in the industry for over 30 years with an established brand and a reputation for consistent quality of their products.
Company’s intention to leverage these competitive advantages and their global customer base to continue to capitalize on
growth in demand for cryogenic storage tanks and equipment.

• Large portfolio of specialized cryogenic equipment engineered to global quality standards

The company offers comprehensive solutions across design, engineering, manufacturing, and installation of standard as well
as customized cryogenic equipment and systems. Their equipment and systems are used in various industries. The company
has developed and commercialized products and services spanning across the entire cryogenic value chain in industrial gases,
LNG liquefaction plants and liquid hydrogen.

For additional information & risk factors please refer to the Red Herring Prospectus -8-
 Company’s products require specialized engineering, industry certification and customer acceptance because of the extremely
low cryogenic temperature and volatile nature of the gases that their equipment stores and handles. Due to their engineering
expertise, quality product offering and customer service, they have developed a reputed brand, INOXCVA, in the cryogenic
equipment industry. In the Fiscal 2023 they have Installed Capacity of 3,100 Equivalent Tank Units (which are cryogenic storage
tanks of 10,000 litres), 2.4 million disposable cylinders, 14 certifications from United States, Europe, Australia and other
international markets.

• Diversified domestic and international customer base across industry sectors

The company provides their cryogenic storage, distribution and transportation equipment and systems to corporate and
government customers. They have a diversified end-industry mix with customers in industries such as energy, industrial gases,
LNG and LCNG, steel, medical and healthcare, chemicals and fertilizers, pharmaceuticals, aviation and aerospace,
pharmaceuticals, and construction, amongst others. They provided their equipment and systems to over 1,201 domestic
customers and over 228 international customers across the 3 divisions.

• Strong product development and engineering focus

The foundation of the company is based on product development and engineering. They have an inhouse engineering team
to develop new products and solutions. In the past 3 fiscal years, their inhouse team has developed cryogenic containers that
comply with ISO containers standards, LNG fuel stations, LNG/LCNG fuel stations, LNG fuel tanks, cryogenic biological storage
and beverage kegs.

• Healthy financial performance to support growth

The company has built their business organically and have demonstrated consistent growth in terms of revenues and
profitability. Their consolidated total income has increased at a CAGR of 27.13% from ₹ 608.99 crore in Fiscal 2021 to ₹ 984.20
crore in Fiscal 2023. The consolidated PAT has increased at a CAGR of 26.06% from ₹ 96.11 crore in Fiscal 2021 to ₹152.71
crore in Fiscal 2023. In the six months ended September 30, 2023, and in Fiscal 2023, Fiscal 2022, and Fiscal 2021, the
consolidated cash flows generated from operations were ₹ 89.46 crore, ₹178.38 crore, ₹97.04 crore and ₹230.69 crore.

• Experienced Promoters, Management Team and Skilled Workforce

The company is part of the INOX group which provides the strategic support and leadership. They are led by a qualified and
experienced management team that has the expertise and vision to manage and grow their business.

The company run their business professionally with dedicated senior and mid-level management teams, who have been with
the company on an average for more than a decade. The management team support has vast experience in cryogenic
engineering, project execution, sales and marketing. The knowledge and experience of their promoters, along with their
management, and their team of dedicated personnel, provide them with a significant competitive advantage as they seek to
grow their existing markets and enter new geographic markets. Further, as of October 31, 2023, they had 419 engineers and
144 welders at their 3 manufacturing facilities.

KEY BUSINESS STRATEGIES

• Capitalize on opportunities in LNG and hydrogen as part of the global clean energy transition

The demand for cryogenic equipment across geographies is expected to be driven by the increased demand for cleaner fuels
such as LNG and hydrogen due to the focus on reducing carbon emissions from conventional energy sources. Inox India is well
positioned to capture this global market growth, and they intend to focus their efforts on the small-scale LNG segment. Their
comprehensive LNG product range includes the entire value chain from taking the cryogenic LNG at the receiving terminal for
small scale and mobile users to storage and transportation and then distribution to the end-use such as the equipment for
retail fuelling of LNG and LCNG. In the LNG tank segment, they have supplied over 60% of the tanks in both the stationary tank
segment which includes all LNG applications including LCNG stations and trailer mounted mobile LNG tanks in India which have
a valid PESO license as of May 4, 2022. They have also received orders for supply of equipment for multiple auto-LNG
dispensing stations from IOCL, BPCL and HPCL for the Phase-I of auto-LNG station rollout.

The hydrogen segment in India is expected to see strong growth with the GoI’s emphasis on developing a hydrogen economy
in the country. Inox India is a product development and engineering centric company, and they intend to focus their efforts
on innovation in complex industry environments where their value-add is greatest in areas like hydrogen storage,
transportation, and distribution to address the need for large scale movements of liquid hydrogen. Their engineering team has
been developing cryogenic equipment for hydrogen. They were the 1st Indian company to manufacture a trailer mounted
hydrogen transport tank, which was designed jointly with the ISRO.

For additional information & risk factors please refer to the Red Herring Prospectus -9-
 • Capture the full value-chain across the product lines

Inox India is looking to gain market leadership positions across the entire value-chain of their product lines, their areas of focus
in the near term will be LNG end users in remote islands, industrial consumers without access to natural gas pipelines, marine
barges, LNG for the transport sector including fuel stations and vehicle mounted tanks including all auxiliary equipment.

In the industrial gas sector, most of their customers already have their own setup to provide vaporized gases to their end
customers. The company plans to offer complete solutions for hydrogen fuelling infrastructure. In addition, they have
extended their range to cover the complete storage and front-end equipment to air separation plant projects. They are also
developing a helium IMO tank and are currently in the final testing stage. They expect to offer this tank in India and
internationally.

• Expanding the standard cryogenic and non-cryogenic equipment business into international markets

Inox India is looking to expand their geographic reach for their standard equipment that they can produce at prices which are
competitive in the international market. They are considering expanding their non-cryogenic equipment business to include
the manufacture of stainless-steel metal containers. They are also looking to distribute internationally their mass produced
cryobiological containers fabricated from aluminium, and they are developing regional distributors to support retail sale of
such products. They look to focus their expansion on North America, South America, Europe, Africa, Korea, and Japan. They
are also ramping up their current business in the Middle East, Southeast Asia, India, and the SAARC region.

They also aim to expand their market penetration across geographies of their standard equipment offering by

• Becoming an approved equipment provider to additional large multi-national corporations for industrial gases and
LNG requirements,
• Engaging third party distributors who maybe engaged with target industries where they are less experienced,
• Setting up regional service centres on their own or through partnerships,
• Acquiring companies in related businesses with common customer bases,
• Providing seminars, technical lectures, and participation in major events such as Hydrogen Summit 2022, the Gas
World Conference and the All-India Industrial Gases Manufacturers Association conference.

• Expanding the large turnkey project business

As the large turnkey projects offers better margins because of the limited competition for these projects, the company aims
to change their revenue mix over time towards large turnkey margin accretive projects. They aim to expand their business as
a storage system provider. They also have large project opportunities in cryogenic storage and end use application systems
that have significant role in the transition to cleaner fuels such as hydrogen and natural gas.

• Continue to improve operational efficiency and productivity

The company has been improving their operational efficiency at their Kalol and Kandla SEZ facilities with a focus on improving
productivity and reducing operational expenses including labour costs, power expenses and other expenses including testing,
repair, insurance, security, and other operational expenses. They intend to continue enhancing their operational efficiencies
and productivity and increasing their economies of scale to better absorb their fixed costs and reduce their other operating
expenses.

• Growth through strategic acquisitions and alliances

The company is evaluating establishing a new facility to manufacture standard equipment including storage tanks, transport
tanks, microbulk tank and stainless-steel metal containers for variety of application in accordance with their strategy to expand
their standard equipment. Also, they will look for strategic acquisition targets in India and internationally to expand their
regional reach, product development and manufacturing assets.

COMPETITION
Inox India compete to provide their cryogenic equipment in India and internationally. Their competition includes cryogenic
equipment manufacturers in one or all of their business segments, some of which are divisions of diversified business groups.
The key players in the global cryogenic equipment segment include 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.

The company competes primarily on the basis of their design, engineering, and manufacturing capabilities, on-time delivery,
customer service security of supply (quality, regulatory compliance and financial stability) and cost- effective products and
solutions.

For additional information & risk factors please refer to the Red Herring Prospectus - 10 -
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For additional information & risk factors please refer to the Red Herring Prospectus - 11 -