INOX India prefers greenfield expansion over expensive acquisitions: Siddharth Jain

Siddharth Jain, Non-executive director, Inox India

INOX India, a part of INOX Group with roots in the industrial gases segment, is the largest manufacturer of cryogenic tanks and solutions. The company has set ambitious plans to capture markets in the international arena, with several innovations on the way, said Siddharth Jain, the company's non-executive director and promoter. In an exclusive interview with Moneycontrol, Jain discussed the company’s strategy to expand its LNG fuelling infrastructure, its expertise in cryogenic technology and its focus on emerging opportunities such as liquid air batteries. Edited excerpts: 

While we operate in a different space compared to rapid-growth tech companies, we are seeing steady and consistent growth. Industrial projects, particularly those that are capex-intensive, tend to take longer to materialise. However, we are focused on ensuring top-quality products and maintaining strong relationships with our clients. Our role is to be the trusted partner they turn to when they are ready to move forward with their projects. We believe that as the market matures and industries continue to prioritise sustainability and energy efficiency, the pace of contract awards will accelerate further.

Our capital allocation strategy is straightforward and highly disciplined. First and foremost, we prioritise business needs. We invest where necessary and prefer to leverage internal accruals first, as we are a debt-free company. However, we are not averse to taking on debt for viable opportunities that will help us grow strategically. We prefer greenfield expansions, as they allow us to create new facilities and tap into new markets, rather than making expensive acquisitions. We are also open to exploring opportunities in different countries to expand our global presence, especially in markets where we see long-term potential for growth.

Skilled labour is indeed a critical requirement for our operations, and we’ve taken proactive steps to address this challenge. We’ve partnered with local colleges through our skill academy in Baroda, where we train workers in welding, fitting, and other specialised skills that are essential for our manufacturing processes. One initiative we are particularly proud of is our “Women in Welding” programme, where we train women from rural areas to become welders. This programme not only empowers women but also ensures high-quality output for our projects. It’s an innovative solution that has helped us address the skills gap while contributing positively to our communities.

The US market is undoubtedly a significant focus for us, and we monitor policy developments closely, especially with regard to trade tariffs and regulations. While the changing global leadership landscape can create some uncertainty, we continue to focus on aligning our offerings with the market’s needs. We have established a strong presence in the US and are confident that as the demand for our products grows, we will continue to strengthen our position there. We are also closely watching how policy changes in both the US and other key markets will impact the broader industrial sector, and we are adapting our strategy accordingly to ensure sustainable growth in these regions.

Absolutely. We are actively building the infrastructure required to support LNG trucks, which are a significant step toward reducing the country’s dependence on diesel. Switching to LNG from diesel in India offers both financial and environmental benefits. It not only reduces operational costs but also significantly cuts CO2 emissions, aligning with India’s sustainability goals. Importantly, this transition is driven by sound economics and does not require subsidies, making it a sustainable solution in the long run. LNG infrastructure development along major highways, such as the Golden Quadrilateral, is a key initiative that will support the growing demand for LNG trucks across the country.

Cryogenics has immense growth potential for us, and we see it as a cornerstone of our future expansion. We have established a strong reputation globally for our cryogenic technology, particularly in the scientific and industrial sectors. Our cryogenic tanks are used for a range of applications, from LNG storage to biomedical uses like preserving vaccines. This has led to consistent referrals for high-value projects from global clients. While these projects are typically large and irregular, making their impact hard to predict on a percentage basis, the long-term potential is tremendous. As industries across the world continue to prioritise energy efficiency and sustainability, our cryogenic technology is poised to become increasingly integral.

This is a rapidly growing global market opportunity for us. We are seeing significant traction from international clients, particularly in the food and beverage industry. Our ability to manufacture high-quality stainless steel products at scale and at a competitive cost has proven to be a key factor in our success. The demand for eco-friendly beverage containers that are durable and sustainable is on the rise, and we’re positioning ourselves to meet that demand. This success is opening doors for us to explore additional large-scale stainless steel product categories, enhancing our product portfolio and market presence.

Certainly. This is an exciting and pioneering development. Our client, High View Power, is setting up the world’s first commercial liquid air battery, with a capacity of 50 MW, for the UK grid. Unlike traditional lithium-based batteries, which rely on scarce resources like lithium and cobalt, liquid air batteries use air as the raw material. This innovation eliminates the need for mining rare resources and is a much more sustainable option for energy storage. The project represents a significant step toward renewable energy storage solutions, and if it proves commercially viable, it has the potential to revolutionise the energy sector. The ability to scale liquid air batteries could provide a more efficient, cost-effective and sustainable energy storage solution for the future.

Our 30 years of experience in the industry provide us with a formidable moat. Establishing a reputation in this field, particularly in niche areas like cryogenics and specialised tanks, is extremely challenging. Over the years, we have built a legacy of trust, quality and technological expertise. We continuously invest in innovation, ensuring our products remain at the forefront of the industry. Additionally, we focus on cost competitiveness and operational excellence. While competition does exist, we stand out by offering superior products backed by our deep expertise and global network. Our focus on technological advancement ensures that we stay ahead of the curve in an increasingly competitive market.