About Cryogenic OGS Limited

BUSINESS OVERVIEW

Cryogenic OGS specializes in delivering high-quality measurement and filtration equipment and systems through fabrication and assembly, catering to the oil, gas, chemical, and allied fluid industries. The company offers customized, innovative solutions tailored to specific client requirements, with a focus on maximizing efficiency and minimizing costs.

The company’s in-house engineering and design capabilities enable a diversified product portfolio, supported by comprehensive services such as design, process engineering, fabrication, assembly, and testing. Designs are prepared using Auto-CAD ELD and other supporting software.

Operating from an 8,300 sq. meter facility in Vadodara, Gujarat, the production unit is equipped with advanced machinery and a dedicated quality control department, offering chemical, mechanical, non-destructive, hydro, and pneumatic leak testing. The premises also include a centralized administration block to streamline operations.

Fabricator capability certification from DNV has been secured for key products, with assessments validating annual fabrication capacity based on the company’s infrastructure and manpower.

The company adheres to multiple international standards, including API, IS 2825, ASME, and ATEX, ensuring compliance, safety, and precision in high-risk sectors such as oil & gas and chemicals.

Business is primarily acquired through competitive tender bidding and direct inquiries, with 93 domestic tenders worth ₹49.50 crore and 5 international bids worth ₹1.07 crore currently under commercial evaluation. These include innovative offerings such as large trolley proving skids, truck loading skids, and gas blending/metering skids.

To expand global presence, Cryogenic OGS has entered a sales and marketing partnership with KMC Oil and Gas Equipment LLC, Abu Dhabi, targeting clients in GCC countries. As on March 31, 2025, our company has 31 permanent employees. The Banker to the Company is ICICI Bank Limited.

INDUSTRY ANALYSIS

Oil and Gas Sector in India

Strategic Importance in the Indian Economy

The oil and gas sector stands as a cornerstone of India's economic infrastructure, recognized among the eight core industries vital to national development. Its influence permeates across sectors—fueling transportation, industrial activity, and domestic energy needs—thereby playing a pivotal role in sustaining India's growth momentum. As of 2023, India is the third-largest consumer of oil globally, a testament to the sector’s criticality.

With the country’s economic growth directly tied to rising energy demand, the Indian government has undertaken progressive reforms to boost both domestic capacity and foreign investment. 100% FDI is now permitted in crucial areas like natural gas and petroleum product marketing, while FDI in public sector refining projects has been raised to 49%. These measures have catalyzed investments from major players like Reliance Industries Limited (RIL) and Cairn India, contributing to a projected US$ 25 billion investment in exploration and production.

Downstream Sector and Industrial Integration

The downstream segment—encompassing refining, processing, and distribution of oil and gas products—plays a crucial role in transforming raw hydrocarbons into valuable, consumer-ready products like gasoline, LPG, lubricants, and synthetic materials. Indian companies in this segment rely on precision metering and filtration equipment to maintain efficiency and safety in operations.

With 23 refineries in operation and expansion underway, India is evolving into a refining hub in the Asia-Pacific region. IOCL, BPCL, and HPCL dominate downstream activities, supported by a growing network of pipelines and retail outlets.

Growth Outlook and Market Demand

India's energy demand is poised for sustained growth:

• Crude oil consumption is projected to rise at a CAGR of 4.59%, reaching 500 million tonnes by FY40 (from 223 million tonnes in FY23).

• Oil consumption is expected to climb from 4.05 million barrels per day (MBPD) in FY22 to 9.2 MBPD by 2050.

• Diesel demand is forecasted to double by FY30, hitting 163 million tonnes, with diesel and petrol comprising 58% of total demand by 2045.

This robust growth trajectory signifies increasing opportunities for both public and private sector participation across the value chain.

Key Developments and Government Initiatives (2023–24)

1. Crude & Refined Pipelines:

   • 10,941 kms of crude pipeline network with 153.1 MMTPA capacity as of March 1, 2024.

   • 12,581 kms of refined products pipeline led by IOCL with 53.86% share.

2. Production & Refining:

   • Crude oil production stood at 22.71 MMT (April 2023–Jan 2024).

   • Refining capacity reached 235.9 MMT, with IOCL contributing 66.7 MMT.

3. Retail and Distribution Network:

   • OMC retail outlets increased from 59,595 in FY17 to 89,396 by March 2024.

   • IOCL operates the most outlets (37,224), followed by HPCL (21,762) and BPCL (21,676).

   • 25,460 LPG distributors (under PSUs) in India as of March 2024.

4. Natural Gas Infrastructure:

   • GAIL leads with 62.14% of the gas pipeline network (17,099 kms out of 27,516 kms).

   • Unified Tariff System introduced by PNGRB with three tariff zones and a flat rate of Rs. 73.93/MMBTU, streamlining gas distribution.

5. Investments & Innovations:

   • Jio-bp introduced diesel with cleaning agents at Rs. 1 less/litre than PSUs.

   • Tata Mining & GAIL partnered for natural gas supply to reduce emissions.

   • Oil India Ltd. initiated drilling in Mahanadi Onshore Basin under the OALP scheme.

Future Outlook

India’s oil and gas sector is transitioning rapidly in response to domestic demand, global energy trends, and sustainability goals. The growing emphasis on infrastructure development, refining capacity, and clean energy transitions (like natural gas and CBM) sets the stage for India to become a self-reliant energy powerhouse. With strong government backing, increasing private participation, and rising demand, the sector is poised to remain a major contributor to India's GDP and industrial resilience for decades ahead

BUSINESS STRENGTHS

1. Strong & Unique Product Technology
Cryogenic OGS delivers innovative, value-driven solutions by leveraging proprietary technologies and original design concepts. Products are built from high-quality materials, ensuring durability and consistent performance.

2. Experienced Leadership & Skilled Workforce
Led by Promoter and Managing Director Mr. Nilesh Natwarlal Patel, with over 22 years of industry experience, the company benefits from a seasoned management team and a well-trained employee base, positioning it to capitalize on market opportunities effectively.

3. Certified Quality and Service Standards
The company is certified under ISO 9001 (Quality Management), ISO 14001 (Environmental Management), and ISO 45001 (Occupational Health & Safety), reflecting a commitment to excellence, sustainability, and workplace safety.

4. Strong Supplier Relationships
Established supplier partnerships enable timely procurement of quality materials, supporting efficient inventory management and consistent product delivery.

5. Stable and Reputed Customer Base
Long-standing associations with leading oil and gas companies underline the company’s reliability. Continuous adoption of advanced technologies and process improvements enhances customer satisfaction and loyalty.

BUSINESS STRATEGIES

1. Building Strategic Partnerships
Collaborating with key industry players to strengthen market presence and drive mutual growth.

2. Adopting Emerging Technologies
Leveraging advanced technologies to deliver innovative, future-ready solutions tailored to evolving client needs.

3. Customer-Centric Focus
Prioritizing customer satisfaction and relationship-building to ensure long-term engagement and repeat business.

4. Global Market Expansion
Targeting international markets through strategic alliances, backed by a strong domestic reputation for quality and innovation.

BUSINESS RISK FACTORS & CONCERNS

1. Product Concentration Risk
A significant portion of revenue is dependent on Air Eliminators and Oil & Gas Metering Skids, contributing 29.65% and 27.31% respectively to revenue from operations in FY25. Dependence on a limited product portfolio and on a few top customers makes the company vulnerable to fluctuations in demand, potential technological substitution, and challenges in product upgradation. Inability to innovate or expand into high-growth categories could adversely affect long-term growth and profitability.

2. Geographic Concentration Risk
Operations are highly concentrated in Gujarat and Maharashtra, accounting for 46.72% and 34.95% of revenue respectively in FY25. Adverse regional developments, such as economic downturns, increased competition, or regulatory challenges, may have a disproportionate impact on business continuity and financial results. Expansion into other regions remains a challenge.

3. Raw Material Supply and Pricing Risk
The business relies heavily on critical raw materials like ball valves, pumps, motors, mass flow meters, gaskets, cables, and pipes, with material cost constituting 64.60% of revenue in FY25 (₹2,125.59 lakhs). Price volatility or supply disruptions—due to macroeconomic factors, logistics, or geopolitical issues—can affect cost structure and product pricing. Continued dependence on vendor relationships and fluctuating input costs introduces operational and financial uncertainty.

Cryogenic OGS faces key risks related to product concentration, geographic revenue dependency, and raw material volatility. These factors may materially impact the company’s operations, financial performance, and future growth.