A P1 plus rating was assigned to the Rs. 25 crore short term debt programme of India“s Inox Air Products by rating firm Crisil. This reflects Inox Air Products“ strong market position in the industr…
A P1 plus rating was assigned to the Rs. 25 crore short term debt programme of India“s Inox Air Products by rating firm Crisil. This reflects Inox Air Products“ strong market position in the industrial gases business, technological and financial benefits arising from its association with a leading international company, Air Products and Chemicals Inc (S&P rated A/Negative/A1), and an above average financial position. The rating is constrained by the capital intensity in the industry, high level of competition and dependence on cyclical end-user segments in chemical and steel industries. Inox is engaged in manufacturing and marketing various gases mostly for industrial users. The company also produces air separation plants, nitrogen plants, LPG cylinders and disposable cylinders. It has manufacturing facilities at over 25 locations in India and has also acquired Superior Air Products, through which it has an entry into the profitable medical gases businesses. About 75% of Inox“s income comes from the sale of industrial gases and this is expected to fuel its growth in future. The company is an equal partnership venture between the original promoters, the Jains, and Air Products Inc.