INOX Air Products plans to add 5,235 tonnes per day (TPD) of industrial gas capacity by March 2027 through 12 new locations, as it seeks to capitalise on rising demand from India’s steel, solar and semiconductor industries.
The expansion will increase its on-site capacity by 27 per cent to 20,388 TPD from 16,074 TPD as of March, 2026, while merchant liquid gas capacity will rise 18 per cent to 6,027 TPD from 5,106 TPD, according to its Draft Red Herring Prospectus filed with SEBI.
Of the proposed addition, 4,314 TPD will be in the on-site segment and 921 TPD in merchant liquid gases. The company expects 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 will account for nearly 84 per cent of the upcoming on-site capacity, followed by solar at 7 per cent, non-ferrous metals at 5.5 per cent and electronics and semiconductors at 2.5 per cent. Steel contributed 41 per cent of the company’s revenue in FY26, against 37 per cent in the previous fiscal.
The company has secured a contract worth about $150 million from Tata Steel for two Air Separation Units at Meramandali in Odisha. It has 10 on-site contracts under execution, in addition to 41 commissioned contracts.
INOX Air Products is also expanding its speciality gases business to tap opportunities in India’s semiconductor and solar manufacturing sectors. It has commissioned ultra-high-purity gas plants at Hosur and Manali and is developing a speciality gas hub at Dholera, Gujarat, involving an initial investment of around ₹500 crore.
According to the CRISIL report, India’s industrial gases market is expected to grow at 9–12 per cent annually between FY26 and FY32.
The proposed IPO comprises an offer for sale of up to 7.72 crore shares by existing shareholders. The company will not receive any proceeds from the issue.
Published on November 13, 2026
