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Steel, Solar, Chips Drive INOX Air Products' Future Growth
13 Nov
Summary
- INOX Air Products is expanding industrial gas capacity by 5,235 TPD.
- Expansion will serve rising demand from steel, solar, and semiconductor sectors.
- Six new facilities planned in West and Central India by March 2027.
INOX Air Products is undertaking a substantial expansion, planning to add 5,235 tonnes per day (TPD) of industrial gas capacity by March 2027. This strategic move involves establishing 12 new locations across India.
The expansion will increase the company's total on-site capacity by 27% to 20,388 TPD and its merchant liquid gas capacity by 18% to 6,027 TPD. Six new facilities are slated for West and Central India, with three in the South, two in the North, and one in the East.
Steel production will be the primary beneficiary of the new on-site capacity, accounting for approximately 84%, followed by solar (7%), non-ferrous metals (5.5%), and electronics/semiconductors (2.5%). Steel has already shown significant contribution to the company's revenue.
INOX Air Products is also bolstering its specialty gases business, investing around ₹500 crore for a specialty gas hub in Dholera, Gujarat, and ultra-high-purity gas plants in Hosur and Manali to tap into the growing semiconductor and solar manufacturing sectors.
The broader Indian industrial gases market is projected to grow at an annual rate of 9-12% between FY26 and FY32, according to CRISIL. The company has secured a significant contract with Tata Steel for two Air Separation Units.
