Production Commenced — What It Means
Ellenbarrie Industrial Gases has officially commenced commercial operations of its new Air Separation Unit in Durgapur, West Bengal. The facility, which has a production capacity of 325 Tons per day, is situated within the manufacturing premises of Jai Balaji Industries. This commissioning is the culmination of an agreement signed in February 2025, where the company committed to establishing and operating the unit to provide a steady supply of industrial gases.
The project reinforces Ellenbarrie's operational footprint in Eastern India, which remains a critical hub for industrial manufacturing and metal production, particularly within the steel and engineering sectors.
Path to This Milestone
- Agreement executed on February 14, 2025, for a 15-year onsite supply tenure
- Project involved setting up, owning, and operating the ASU facility at the customer site
- Commissioning completed and announced on September 25, 2026
- Agreement was entered before the listing of the company's equity shares on stock exchanges
- Strategic shift toward long-term onsite business to ensure captive demand
Revenue Impact and Financial Context
Financial contributions from the Durgapur plant are expected to reflect in the company’s books starting from September 2026. The agreement is designed with a take-or-pay contractual structure, which ensures a minimum revenue stream regardless of the actual consumption levels by the client, provided the plant is available for supply. This provides the company with high cash flow predictability over the 15-year contract duration.
This steady income complements Ellenbarrie's existing financial performance, which saw a trailing twelve-month net profit of 120.65 crore and an operating profit margin of 38.12 percent in the most recent quarter.
Business Overview
Ellenbarrie Industrial Gases is a established player in the Indian industrial and medical gases sector, specializing in the production of oxygen, nitrogen, and argon. The company caters to diverse industries including steel, healthcare, and chemicals through both merchant sales and long-term onsite gas supply contracts. Headquartered in Kolkata, it maintains a strong presence in the Eastern and Southern regions of India.
By operating onsite units like the new 325 TPD facility, the company effectively reduces logistics and distribution costs while securing long-term demand from large-scale industrial manufacturers in high-growth corridors.
