Inox CVA was the largest supplier of cryogenic equipment in India by revenue in 2023.
Inox CVA is the first Indian company to manufacture a trailer-mounted hydrogen transport tank in collaboration with the Indian Space Research Organisation (ISRO).
They successfully supplied a 238kl liquid hydrogen storage tank for a South Korean plant and recently dispatched four 311kl liquid hydrogen storage tanks for the development of three additional plants in South Korea.
In the last three years, Inox CVA has delivered its equipment and systems to a total of 1,255 domestic clients and 254 international clients across its three distinct divisions.
They have developed unique products like LNG vehicle fuel tanks, marine inland waterway barge tanks, and ultra-low temperature vapour freezers for biological products.
They provide custom-engineered solutions tailored to individual customer requirements. This includes unique projects like cryogenic tanks for LNG bunker barges and disposable cylinders that meet specific international standards.
Inox CVA has developed systems for cryogenic storage and handling, particularly in challenging fields like space research and cryogenic propulsion systems. They have been involved in projects, such as the ITER nuclear fusion research.
Their products are manufactured in compliance with various international standards, including ASME, EN 13458, and ISO 3824-Part 2.
Exporting to 66 countries, Inox CVA has established a significant international footprint.
The nature of cryogenic gasses stored at very low temperatures poses health hazards, including frostbite and lung damage. Leakage in an enclosed area could lead to oxygen deficiency, necessitating stringent design, testing, and maintenance standards to mitigate risks.
The company's use of the ‘INOX’ name, under a license agreement, is crucial for its branding. Any inability to comply with this agreement or its termination could adversely affect the company's business and reputation.
Certain members of the Promoter Group have not consented to provide necessary information for regulatory disclosures. This lack of cooperation and potential non-compliance with regulatory requirements could lead to incomplete or outdated information about the company's governance and operations.
The industries served by Inox CVA are subject to cyclical demand and vulnerable to economic downturns. This can lead to fluctuations in business performance and challenges in long-term planning.
Ongoing legal proceedings against the company, its Promoters, Subsidiaries, and certain Directors could result in liabilities or penalties if decided adversely, negatively affecting the company's operations and financial health.
The unsecured loans taken by subsidiaries INOXCVA Comercio E Industria De Equipamentos Criogenicos Ltd and INOXCVA Europe B.V. from the parent company are repayable on demand. If these subsidiaries lack adequate funds for timely repayment, it could adversely affect Inox CVA's cash flows and the operations of these subsidiaries.
Inox CVA’s 11.56% and 46.52% of revenue from operation was derived from its largest customer and top 10 customers, respectively, for Fiscal 2023. Cancellation by customers or delay or reduction in their orders could have a material adverse effect on the business, results of operations and financial condition.
The geographical concentration of manufacturing facilities in Gujarat and the Union Territory of Dadra and Nagar Haveli exposes Inox Limited to region-specific risks.
Inox CVA heavily relies on exports, constituting 62.18% and 45.83% of revenues from operations in the six months ended September 30, 2023, and 2023, respectively.