Ellenbarrie Industrial Gases IPO

Ellenbarrie Industrial Gases Limited (EIGL), founded in 1973, is a leading Indian supplier of industrial, medical, and specialty gases. The company offers a wide array of gases including oxygen, nitrogen, hydrogen, helium, carbon dioxide, acetylene, and argon, along with products like dry ice, synthetic air, LPG, and fire-fighting gases. EIGL supports diverse sectors such as steel, pharmaceuticals, healthcare, engineering, petrochemicals, aviation, and defense. It provides gas supply through cryogenic tankers, gas cylinders, and onsite solutions. Notable clients include AIIMS, Dr. Reddy’s Laboratories, Air India Engineering Services, and major steel and petrochemical companies.

Beyond gas supply, EIGL offers project engineering services such as designing and commissioning air separation units, and medical infrastructure support like gas pipeline systems and critical healthcare equipment. As of FY 2024, the company served 1,836 customers, including 295 bulk clients with long-term contracts averaging five years. EIGL operates eight manufacturing units across four Indian states and maintains a workforce of over 300 employees. This integrated model of product and service offerings positions EIGL as a comprehensive provider in the industrial and medical gas sector.

Ellenbarrie Industrial Gases IPO Strengths

• Ellenbarrie is the largest 100% Indian-owned industrial gases company by installed manufacturing capacity, revenue, and profitability in Fiscal 2024.
• With over 50 years of operations, Ellenbarrie has a rich legacy and deep expertise in the industrial gases sector.
• Ellenbarrie supplies a wide range of industrial gases, including oxygen, nitrogen, argon, carbon dioxide, acetylene, and specialty gases, along with related equipment and services.
• The company has a strong presence in Eastern and Southern India, with manufacturing units in multiple states and a dedicated export wing for international clients.
• Ellenbarrie serves a broad range of industries such as pharmaceuticals, steel, healthcare, defense, and energy, with long-term relationships built over decades.
• The company is equipped with state-of-the-art air separation units and one of the largest cryogenic transport fleets in India, ensuring reliable supply and delivery.
• Ellenbarrie maintains a comfortable financial risk profile and has received strong credit ratings, supported by sound operating efficiency and diverse revenue streams.
• Recent partnerships, such as the onsite plant collaboration with Jai Balaji Group, highlight Ellenbarrie’s ability to innovate and expand its market reach.

Ellenbarrie Industrial Gases IPO Risks

• The company is highly dependent on its top customers, with the top 10 clients contributing a significant portion of its revenue. A loss or reduction in demand from any major client could materially impact financial performance.
• Most of Ellenbarrie’s top clients are located in East and South India. Economic downturns or adverse developments in these regions could reduce business volumes and revenues.
• The company operates multiple manufacturing facilities. Any disruptions due to accidents, mechanical failures, or natural disasters could halt production and impact operations.
• Planned expansion, including the new air separation unit at Uluberia-II, carries risks of delays, cost overruns, or operational setbacks, which could affect growth and profitability.
• The industrial gas sector is subject to stringent regulations. Changes in environmental, safety, or industry regulations could increase compliance costs or restrict operations.
• The industrial gas market is highly competitive. Intensified competition may pressure margins and market share, affecting profitability.
• Demand for industrial gases is linked to broader economic cycles and the performance of end-user industries such as steel, healthcare, and manufacturing. Economic downturns could reduce demand.
• The cost of raw materials and energy can fluctuate significantly, impacting production costs and profit margins.