Inox India is planning to list its equity shares on the stock exchanges to reap the benefits associated with it. The proposed listing is expected to improve visibility and brand image of the company, along with providing a public market for the equity shares in India. After deducting the relevant taxes and offer expenses, the selling shareholders will receive the entire offer proceeds.

Inox CVA is a company specializing in the manufacture of cryogenic equipment. They offer a wide range of products, including cryogenic tanks, beverage kegs, bespoke technology, equipment, and solutions. Their equipment and products are used in various industries such as LNG, green hydrogen, energy, medical, and aerospace. Inox CVA is India's largest supplier and exporter of cryogenic equipment, with a global footprint that extends to over 66 countries. 

The company operates through three dedicated divisions -

Industrial Gas, LNG, and Cryo Scientific - each providing specialized solutions

to different market segments. Inox CVA's manufacturing facilities are located

in Gujarat and Dādra and Nagar Haveli, and they have ISO certifications.

Strengths

- The company is a well-established and leading supplier and exporter of cryogenic equipment and solutions in India, with over two decades of experience in the industry. It has a strong reputation for delivering high-quality products and services to its customers

- The company has an in-house engineering team that is dedicated to developing new products and solutions that are innovative and customized to meet the specific needs of its customers. The team is well-versed in the latest technologies and industry trends, which gives the company an edge over its competitors

- The company has a marquee client base globally across various industry sectors, which includes major players in the healthcare, aerospace, and food and beverage industries. The company has built a strong relationship with its clients, which is based on trust, reliability, and quality.

Weaknesses

- The company is vulnerable to fluctuations in steel prices, which is a significant component of raw material costs. The company has limited control over the price of steel, which can impact its profitability and margins

- The company has a heavy reliance on exports, which accounted for approximately 46% of revenue in FY23 and around 62% of revenue in H1 FY24. This makes the company susceptible to a potential global economic slowdown, which could impact demand and revenue. The company needs to explore other markets to reduce its dependency on exports

Opportunities

- There is continued growth in the demand for cryogenic equipment and solutions globally, driven by the increasing need for cold storage and transportation of goods, as well as the growing popularity of cryotherapy and other medical applications. The company can leverage this growing demand to expand its business and increase its revenue

- The company can explore opportunities for diversification into emerging markets or industries with growing demand for cryogenic products, such as aerospace and defense, food and beverage, or pharmaceuticals. This will help the company to reduce its dependency on a single market and mitigate the risk of economic slowdowns

Threats

- The company faces intense competition in the cryogenic equipment and solutions market, with many established players and new entrants vying for market share and profitability. The company needs to differentiate itself by developing innovative and customized solutions, building strong relationships with its clients, and investing in marketing and branding

- Economic downturns can significantly impact customer spending on capital and maintenance expenditures, which could lead to lower demand and revenue for the company. The company needs to have a contingency plan in place to mitigate the impact of economic downturns, such as diversifying its customer base and exploring new markets.- There is continued growth in the demand for cryogenic equipment and solutions globally, driven by the increasing need for cold storage and transportation of goods, as well as the growing popularity of cryotherapy and other medical applications

- The company can explore opportunities for diversification into emerging markets or industries with growing demand for cryogenic products, such as aerospace and defense, food and beverage, or pharmaceuticals