Inox Air Products gets P1+ rating

• Commercial paper programme- Rs 15 crore Rating : P1+ 

A "P1+" (pronounced P one plus) rating has been assigned to the Rs. 150 million (mn) commercial paper programme of Inox Air Products Limited (formerly known as Industrial Oxygen Company Limited).

The rating reflects Inox’s business strengths arising out of a strong market position with a well entrenched customer base, technical and financial strength arising out of association with Air products Plc, predictability of business due to long term contracts and the dependence of the company’s customers on supply of gases which is a critical input in most processes. The rating also takes into cognisance its relatively high exposure to the cyclical steel and chemical sector where many corporate are having cash flow problems, intensifying competition from multi-national companies for new projects and necessity to incur capital expenditure for growth.

Inox is engaged in the business of manufacturing and marketing various gases primarily for industrial users. The company also manufactures air separation plants, nitrogen plants, LPG cylinders and disposable cylinders. It has manufacturing facilities at 25 locations in India. Nearly 80% of Inox’s income comes from the sale of Industrial gases, and this is expected to fuel Inox’s growth in the future.

The company has reported a net profit of Rs 145 mn on a sales of Rs 756 mn in H1 1999-2000.