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According to the IMARC Group, In 2020, the Indian industrial gases industry will be worth $2.8 billion. The market is expected to increase at a CAGR of 11.3 percent between 2021 and 2026.
Pre–covid the growth rate in the gas industry was at a very natural pace. With the onset of covid, there was a disproportionate increase in demand for medical oxygen. An all time high registered during lockdowns with increasing incidences of covid positive cases. The fear the covid virus instilled in peoples minds also triggered panic buying of medical oxygen, further putting pressure on the medical gases industry. Quick ramp ups were needed to meet this demand.
Seeing the sudden surge in demand of medical oxygen created the impression in the minds of prospective investors that this was a sure shot investment opportunity. Many new companies sprouted over night with the subsidies, facilities and the priorities that the Government extended to the industry in order to meet the ever rising demand for medical oxygen. Overnight the industry faced a shortage in the availability of cylinders, transport tankers and gas manufacturing equipment. What these new entrants did not realise was that this was only a temporary surge in demand. Once the vaccine cover kicks in; and the prevention and cure of the covid virus becomes a reality; the demand would automatically drop down to a more natural pace.
Moreover, the gestation time to put up a new facility for a new entrant was also nothing short of 8-12 month, by which time there is no telling how the demand would sway. The more rational and effective option would have been for the Government to extend full support to the existing manufacturers to up the game. The high demand for medical oxygen during the peak of the covid crisis made most of the state Governments to stop the production of industrial gases and solely focus on the production of medical gases. The industrial gases industry naturally came to a grinding halt with very limited industrial gases only permitted to be produced to cater to the needs of the pharma and diagnostic fields.
As per the trade information from the past three to four months, the number of COVID cases has been steadily declining. The industry will naturally return to a more natural rate of growth. The
industrial gases market will gradually be opening up and will start growing after that. The phenomenal demand for medical oxygen will only again be triggered if and when another health threat bombards us. Which hopefully never ever happens again.
In the present scenario, industrial and medical gas manufacturing supplies are dominated by MNCs, Local players generally contribute to meeting the local demand. Liquid plant installations involve higher investments. Hence, more MNCs are found in this space. Most local manufacturers may not be able to make such investments and therefore, limit themselves to gaseous plant installations.
Sterling Gases has positioned itself as a consistent manufacturer in quality industrial and medical gases. The firm embraces technology and ensures that it is reflected in its processes right from manufacturing to the end-user stage, thus making the system run smoothly and effectively. Sterling Gases is one of the most reputed companies in the field of industrial gases and has been able to sustain its credentials for the past 37 years, a testimony to our eminence in the field. We are regular suppliers to industries including oil and gas, petroleum, chemicals, power, mining, medicine, biotechnology and food & water in the region.
Significant Characteristics That Set Sterling Apart
Sterling Gases has already embarked on a significant diversification path. The firm are planning to set-up liquid industrial gas stations across the country to meet the needs of those industries that have been out of our reach. We are also planning to rope in the latest technology to upscale the production efficiency at our plants.
Sterling gases embraces technology and ensures that it is reflected in its processes right from manufacturing to the end-user stage, thus making the system run smoothly and effectively
Furthermore, Hemalatha Madathil adds, “Sterling Gases started operations in 1987; at that point in time, there were only two gas manufacturing facilities in the state of Kerala. The very fact that the company has survived this long speaks volumes of its credibility, which the peers cannot boast of. Sterling Gases also manufactures a few exclusives in the state, such as Forming Gases, Mixture Gases and High Purity Nitrogen Gases in Kerala. We believe in absolute client satisfaction and have demonstrated it through high-quality products and dependable services. Our commitment to the ecologically sustainable company and operations is yet another component, but it is the most important. We have been able to achieve practically zero hazardous emission limits in our manufacturing processes as an aware and responsible corporation".
Sterling Gases was able to demonstrate its worth in two situations: the 2018 floods and the current COVID 19 pandemic in Kerala.
In the 2018 floods, Sterling Gases was the only factory operating in the entire state of Kerala. All other manufacturing facilities were flooded and the interstate highways were cut off, preventing any gas tankers and trucks from entering into the state. Our professional team ran the manufacturing facility 24/7 to ensure that the state’s demand for medical oxygen was met. Sterling alone continued to supply the hospitals and health centres throughout the state.
“Sterling Gases has been concentrating on its operations in the state of Kerala only. Going forward we envisage our operations across Tamil Nadu, Andhra Pradesh, Telangana and Karnataka. We will be opening more manufacturing facilities, increasing the supply of gases ensuring consistency in supply," conludes Hemalatha.
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