Inox Air Products, a renowned manufacturer of industrial and medical gases, is making a significant leap into the green hydrogen sector. The company has set its sights on becoming a leading supplier of green fuel globally, bolstered by a series of strategic investments and partnerships.
Inox Air is on track to complete its capital expenditure (capex) target of Rs 3,000 crore in the current financial year (FY25). The company plans to sustain an average annual investment of Rs 1,000 crore, according to Managing Director and promoter Siddharth Jain. Jain emphasized the company’s commitment to a 16% growth target moving forward.
“Our next phase of capex is in the budgeting stage. We typically invest between Rs 500-1,000 crore annually, depending on market demand,” Jain stated. This upcoming phase follows the execution of the previously announced Rs 3,000 crore capex plan initiated two years ago.
Pioneering Green Hydrogen Project with Asahi India Glass
Inox Air has recently entered into a 20-year green hydrogen supply agreement with Japanese multinational corporation Asahi India Glass. The project is slated for commissioning within three months.
“This initial investment in India is crucial and will serve as a flagship project globally,” Jain remarked. “Asahi will act as a test case, demonstrating the potential of green hydrogen to other industries.”
Ambitious Green Ammonia Project in Maharashtra
In another significant venture, Inox Air has signed a $3-billion agreement with the Maharashtra government to develop a green ammonia project. Scheduled for commissioning in the next 4-5 years, this project will focus on exporting green ammonia to Europe, Japan, and Korea.
“We are in the early stages of the feed study, working on engineering, land acquisition, and electricity sourcing. This project will be 100% export-oriented, catering to markets in Europe, Japan, and Korea,” Jain explained.
Expanding Electronic Gases for Solar and Semiconductor Industries
Inox AP, a joint venture with US-based Air Products, is also diversifying into electronic gases for the burgeoning solar and semiconductor industries. As India sets up 10 new solar fabs and expands its semiconductor sector with companies like Micron and Foxconn, the demand for specialty electronic gases is expected to surge.
“India’s new solar fabs and semiconductor projects require a significant supply of specialty electronic gases. We have developed the necessary infrastructure and supply chain to meet this demand,” Jain said. The company anticipates the offtake of electronic gases in the solar industry to commence this financial year.
Inox Air Has No Immediate Plans for Public Listing
Addressing potential plans to list the company, Jain clarified that there are no such intentions at present. “We don’t have any large capex needs that would necessitate going public. All our capex is internally funded. Should the need for substantial investments arise, we will consider approaching the capital markets,” he concluded.
Inox Air’s strategic foray into the green hydrogen and ammonia sectors, coupled with its expansion into electronic gases, positions the company as a key player in the global green fuel and high-tech gas supply markets.