About the Company:
The company is a major player in India’s industrial and medical gas industry, with a strong focus on producing gases for sectors like steel, glass, and chemicals, along with healthcare products such as medical oxygen and nitrous oxide. It also provides turnkey solutions for the design and construction of air separation plants through its Project Engineering division. With operations spanning both domestic and international markets, the company caters to a wide range of industrial clients and continues to innovate through acquisitions and strategic investments in renewable energy and advanced air separation technologies.
In recent years, the company has strategically divested some of its assets and expanded through acquisitions to strengthen its position in the gases market. It has made significant capital investments to expand its production capacity and improve sustainability through renewable energy initiatives. With 14 manufacturing units across India and a broad client base, the company remains a leader in its sector, consistently enhancing its operational footprint and delivering specialized solutions across industries.
Our investment interpretation :
The company presents a compelling investment opportunity due to its unique position within the industrial and medical gases market, backed by a multi-decadal growth trajectory. Its diverse offerings cater to several essential industries, including steel, chemicals, and healthcare, allowing it to capitalize on high pricing power. The robust demand across sectors, coupled with its ability to offer both gas products and turnkey engineering solutions, places the company in a strong position to generate sustained cash flows over the long term.
Furthermore, its leadership in delivering critical infrastructure solutions, such as air separation plants, solidifies its place as a critical enabler of industrial growth. The company also benefits from the support of its multinational parent, which has made multiple attempts to privatize the business, signalling confidence in its longterm potential. Its focus on new-age themes like hydrogen, solar energy, and semiconductors further strengthens its strategic outlook, allowing it to tap into emerging sectors that are poised for growth. The combination of strong cash flow generation, forward-looking innovation, and a well-established market position makes this company a strong candidate for long-term investment.
Returns:
MCap on date of Investment: INR 25,784 Crs.
MCap on date of Exit/ Today: INR 62,196 Crs.
Multiple on Invested Capital (MOIC): 2.4x
