Air Products buys stake in Inox

The US-based industrial gases major Air Products and Chemicals has acquired a 23.36 per cent stake in Industrial Oxygen Company Ltd., or Inox, Mumbai, from its promoters, the Jains, for Rs. 91 crore. The Jains had held 73.36 per cent of the company's Rs. 10.37-crore equity. The deal was finalised for a premium of about 10 per cent.

Inox is a leading manufacturer of industrial gases, with 17 plants across the country. It has a 19 per cent share in the Rs. 800-crore organised (non-captive) industrial gas market.      Air Products is the fourth-largest supplier of gases in the world, with an employee strength of 17,000 in 30 countries. The company's turnover in 1998 was $4.92bn and operating income $845 million.

The agreement will result in the two groups jointly managing Inox. The position of managing director will remain with P.K. Jain until 31 March 2004, and each group will have three nominees on the Inox board.

Mr. Jain believes that "Inox will now have access to Air Products' latest technology. This will enhance the company's range of products and help improve market share." Air Product will enter the industrial gases market in India through Inox. The others with an established presence in India's gases market are British Oxygen, Praxair, Greisham and Air Liquide.

In 1997-98, Inox made a net profit of Rs a6.74 crore on a turnover of Rs 152 crore. In 1996-97, it had made a net profit of rs 14.49 crore on a turnover of Rs 134 crore.