About Ellenbarrie Industrial Gases Limited
BUSINESS OVERVIEW
Ellenbarrie Industrial Gases Limited is the largest 100% Indian-owned industrial gases company by installed manufacturing capacity, revenues, and profitability as of March 31, 2024 (Source: F&S Report). Operating for over 50 years, the company stands out in a sector largely dominated by multinationals.
The company manufactures and supplies a comprehensive range of industrial and medical gases—including oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon, nitrous oxide, as well as dry ice, synthetic air, fire-fighting gases, medical oxygen, LPG, welding mixtures, and speciality gases—catering to a broad set of end-use industries.
It holds a leadership position in West Bengal, Andhra Pradesh, and Telangana, and is among the largest manufacturers in East and South India (Source: F&S Report).
Service offerings include project engineering and turnkey solutions for tonnage air separation units (ASUs), medical gas pipeline systems, and medical equipment supply such as anaesthesia workstations, ventilators, spirometers, and sterilizers.
Supply modalities span onsite, bulk, and packaged formats, supported by one of the largest distribution networks, ranking third nationally in transport tankers, cylinders, and customer installations.
The client base spans steel, pharmaceuticals, healthcare, engineering, petrochemicals, railways, aviation, space, and defence—including major entities like Rashtriya Ispat Nigam Limited, Dr. Reddy’s Laboratories, AIIMS, GMM Pfaudler, and Hindustan Shipyard Limited. Supplies also extend to the Indian armed forces, railway workshops, and government labs across East, South, and West India.
The operational footprint includes eight facilities across West Bengal (4), Andhra Pradesh (2), Telangana (1), and Chhattisgarh (1). Key onsite plants are located at Kharagpur, Nagarnar, and Kurnool, backed by long-term contracts (up to 15 years) ensuring stable and contracted cash flows.
Two additional projects are underway: a new plant in Uluberia, West Bengal, and a capacity expansion at Kharagpur, both aimed at strengthening supply capabilities. As of March 31, 2025, the Company have total 281 employees on payroll. The Bankers to the Company are Axis Bank Limited and HDFC Bank Limited.
INDUSTRY ANALYSIS
India Industrial Gases Market Overview
India’s industrial gases market plays a critical role across diverse sectors, including steel, oil & gas, manufacturing, healthcare, pharmaceuticals, chemicals, fertilizers, and food & beverages. Key players include Linde, Inox Air Products, Air Liquide, Ellenbarrie, Air Water, and Goyal MG Gases.
Market Size and Growth Outlook
The Indian industrial gases market was valued at USD 1.2 billion in 2023, growing at a CAGR of 6% over the past five years. Growth has been fueled by rapid industrialization, infrastructure development, innovations in gas technology, and the push for clean energy, especially hydrogen. After a COVID-related spike in value during 2021–2022, the market stabilized in 2023.
Driven by initiatives like ‘Make in India’, import substitution, and rising demand from core sectors, the market is projected to reach USD 1.8 billion by 2028, with an expected CAGR of 7.5%. In volume terms, it expanded from 9.6 million tons in 2018 to 11.4 million tons in 2023.
Hydrogen Market
India’s hydrogen demand reached 0.15 million tons in 2023, mostly consisting of grey hydrogen (>99%). It is expected to grow to 0.23 million tons by 2028 at a CAGR of 9%. Market value rose from USD 0.15 billion in 2018 to USD 0.20 billion in 2023, and is projected to reach USD 0.32 billion by 2028.
India is advancing toward a hydrogen-based economy under its 2047 energy independence goal, with growing focus on green hydrogen, which is produced via electrolysis using renewable energy. Green hydrogen is gaining momentum as a clean substitute across power, fertilizer, shipping, and industrial sectors. New applications are expected to contribute up to 30% of hydrogen demand over the next decade.
Major players: Linde, Inox Air Products, Grasim, Ellenbarrie, Air Liquide, Tata Chemicals, GHCL, and Bhuruka Gas – with the top four holding 80% market share.
Nitrogen Market
India's nitrogen consumption increased from 3.9 million tons in 2018 to 4.5 million tons in 2023, growing at a CAGR of 3.1%. In value terms, the market rose from USD 0.22 billion to USD 0.29 billion (CAGR of 5.2%).
PSA-based nitrogen generators dominate due to cost-efficiency and high purity. Membrane separation technology is preferred in oil & gas operations. Rising fertilizer demand, food packaging expansion, and manufacturing investments are driving growth.
By 2028, the nitrogen market is expected to reach USD 0.39 billion, growing at a CAGR of 6.1%.
Top suppliers: Linde, Inox Air Products, Ellenbarrie (combined market share: 60%).
Oxygen Market
Oxygen demand rose from 1.8 million tons in 2018 to 2.2 million tons in 2023. Market value increased from USD 0.32 billion to USD 0.44 billion. Demand was temporarily boosted by COVID-19, and is now on a stable growth path.
Production is dominated by cryogenic air separation (ASUs), accounting for over 80% of supply. Applications span from steel and manufacturing to ultra-pure oxygen for semiconductors and labs.
By 2028, volume is expected to reach 2.8 million tons and value to USD 0.62 billion (CAGR of 7.1%).
Top players: Linde, Inox Air Products, Air Liquide, Ellenbarrie, and Air Water, holding over 60% market share. Ellenbarrie operates one of India’s largest oxygen plants (1,250 TPD capacity), with strong capabilities in steel and metal sector applications.
Argon Market
Argon demand rose from 0.16 million tons in 2018 to 0.21 million tons in 2023, driven by welding in automotive, steel, and construction industries. Market value increased from USD 0.08 billion to USD 0.12 billion, growing at CAGR of 8.7%.
Key growth factors include the rise of metal fabrication, electronics, and argon’s use as a helium alternative. By 2028, demand is projected to reach 0.28 million tons, and value to USD 0.19 billion, with CAGR of 9%.
Top suppliers: Linde, Inox Air Products, Air Liquide, Ellenbarrie, with a combined market share of 70%.
Carbon Dioxide (CO₂) Market
CO₂ demand grew from 3.4 million tons in 2018 to 4.0 million tons in 2023, with a CAGR of 3.1%. Market value increased from USD 0.11 billion to USD 0.14 billion (CAGR of 5.2%).
Key consumers include fertilizer producers, refineries, and the food & beverage sector. India’s large refining capacity (250 MTPA) supports strong industrial CO₂ consumption. Emerging applications include synthetic fuel production, pharma, fire safety, and construction materials.
By 2028, CO₂ demand is expected to reach 4.9 million tons and USD 0.18 billion, growing at a CAGR of 6.1%.
Leading players: Linde, Inox Air Products, Ellenbarrie – holding over 50% market share.
Conclusion
India’s industrial gases market is on a strong growth trajectory across hydrogen, nitrogen, oxygen, argon, and CO₂ segments. Supported by robust industrial demand, government policies, and technological innovation, companies like Ellenbarrie, Linde, and Inox Air Products are well-positioned to lead the transformation toward a cleaner, more self-sufficient industrial gas ecosystem.
BUSINESS STRENGTHS
1. Industry Leadership and Legacy
Established in 1973, Ellenbarrie Industrial Gases is the largest 100% Indian-owned industrial gases company by installed capacity and revenues as of March 31, 2024 (Source: F&S Report). With a legacy of over 50 years, the company is one of the oldest operating players in the sector and a market leader in West Bengal, Andhra Pradesh, and Telangana.
2. Comprehensive Product Portfolio
Offers a wide range of industrial gases—including oxygen, nitrogen, argon, helium, hydrogen, carbon dioxide, nitrous oxide, and acetylene—serving diverse sectors such as steel, shipbuilding, pharmaceuticals, aerospace, railways, energy, and defence (Source: F&S Report).
3. Stable Cash Flows from Long-term Contracts
Backed by long-term customer contracts (15–20 years), especially for onsite pipeline supplies, resulting in strong customer retention and predictable revenue streams. High entry barriers due to technical integration complexity and product criticality further reinforce customer stickiness (Source: F&S Report).
4. Diversified Customer Base
Served 1,836 customers in Fiscal 2024—one of the highest in the industry—indicating broad-based demand and low customer concentration risk.
5. Strong Operational Footprint in East and South India
Operates eight facilities across West Bengal (4), Andhra Pradesh (2), Telangana (1), and Chhattisgarh (1), including three bulk manufacturing plants, onsite facilities, and standalone filling stations. Runs one of India’s largest oxygen plants with a 1,250 TPD capacity as of March 31, 2024.
6. Experienced Leadership Team
Led by Managing Director Padam Kumar Agarwala (40+ years of experience) and Joint Managing Director Varun Agarwal (15+ years), the leadership has played a pivotal role in scaling operations and executing growth strategies.
BUSINESS STRATEGIES
1. Portfolio Expansion with Focus on Speciality and Green Gases
Plans are in place to broaden the product portfolio, especially in speciality gases and green energy solutions like green hydrogen and green ammonia, addressing evolving customer needs and sustainability demands.
2. Backward Integration through Plant Manufacturing
Intends to initiate in-house plant manufacturing, complementing existing project engineering capabilities. By producing key components, the company aims to offer end-to-end solutions to customers and reduce costs and time to market. A technology partnership is under discussion to support process design.
3. Manufacturing Capacity Growth and Pan-India Expansion
With demand for industrial gases projected to grow at a 7.5% CAGR (2023–2028) (Source: F&S Report), the company targets increased manufacturing capacity and aims to expand its footprint across India, leveraging high entry barriers and strong customer relationships.
4. Strengthen Onsite Business for Stable Cash Flows
Seeks to expand the onsite model—long-term gas supply agreements at customer premises—to enhance demand visibility and ensure assured cash flows, particularly targeting North and West India for further penetration.
5. Strategic Acquisitions and Alliances
Plans include inorganic growth through acquisitions of smaller, fragmented players to increase market share, enter new geographies, or introduce new product categories, capitalizing on consolidation opportunities in the industrial gases sector.
BUSINESS RISK FACTORS & CONCERNS
1. Dependency on Customer-Site Facilities
Three facilities are located at customer premises—Kharagpur (West Bengal), Kurnool (Andhra Pradesh), and Nagarnar (Chhattisgarh)—under long-term agreements. Any strain in relationships with these key customers may adversely impact operations, revenue, and cash flows.
2. Uncertainty in Government Contracts
Supply to government entities and PSUs is based on competitive bidding and qualification criteria. Changes in tender processes or delays in awards and payments may disrupt revenue streams and liquidity.
3. Regional Concentration Risk in West Bengal
Half of the total facilities (four out of eight), including upcoming projects, are concentrated in West Bengal. Adverse regional developments—political, economic, social, or environmental—could significantly impact manufacturing activities and overall business continuity.
4. Quality Risk in Outsourced Medical Equipment
Medical equipment offered under project engineering services is not manufactured in-house. Any quality issues or regulatory non-compliance in these third-party products could harm business reputation, financial performance, and legal standing.
Ellenbarrie Industrial Gases faces operational and financial risks due to dependency on customer-site facilities, reliance on government contracts, regional concentration in West Bengal, and the outsourcing of medical equipment. These factors could affect business continuity, revenue stability, and long-term growth.
