INOX Air Products expansion plans will add 5,235 tonnes per day (TPD) of industrial gas capacity across 12 new locations by March 2027, as the company targets demand from India’s steel, solar, non-ferrous metals, electronics and semiconductor industries.
The expansion will raise the company’s on-site capacity by 27 per cent to 20,388 TPD from 16,074 TPD as of March 2026, according to its Draft Red Herring Prospectus filed with the Securities and Exchange Board of India. Merchant liquid gas capacity is expected to increase by 18 per cent to 6,027 TPD from 5,106 TPD.
Of the planned addition, 4,314 TPD will come from the on-site segment and 921 TPD from merchant liquid gases. The company plans to increase its operating locations from 57 to 69, with six new facilities in West and Central India, three in the South, two in the North and one in the East.
Steel is expected to account for nearly 84 per cent of the upcoming on-site capacity. Solar will contribute 7 per cent, non-ferrous metals 5.5 per cent, and electronics and semiconductors 2.5 per cent. Steel accounted for 41 per cent of INOX Air Products’ revenue in FY26, compared with 37 per cent in the previous fiscal.
The company has secured a contract valued at about $150 million from Tata Steel for two Air Separation Units at Meramandali in Odisha. It currently has 10 on-site contracts under execution, in addition to 41 commissioned contracts.
On-site industrial gas facilities are developed for individual customers and supply gases through dedicated infrastructure, while merchant liquid gases are distributed to multiple users. The planned increase in both segments will expand the company’s presence near major industrial production centres.
INOX Air Products is also developing its speciality gases business for the solar and semiconductor manufacturing sectors. It has commissioned ultra-high-purity gas plants at Hosur and Manali and is developing a speciality gas hub at Dholera in Gujarat, involving an initial investment of around ₹500 crore.
The expansion comes as India’s industrial gases market is projected to grow at 9–12 per cent annually between FY26 and FY32, according to a CRISIL report cited in the prospectus. Industrial gases are used across steelmaking, metal processing, electronics manufacturing and other industrial operations, linking the company’s capacity plans to the expansion of India’s manufacturing base.
The proposed initial public offering will comprise an offer for sale of up to 7.72 crore shares by existing shareholders. INOX Air Products will not receive any proceeds from the issue. The company’s next stated milestones are the commissioning of the planned facilities and the execution of contracts currently under development.
