Cryogenic OGS Limited (BSE SME)

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IPO Details

Key Performance Indicator

Company Financials In Crore

About Company

Cryogenic OGS Limited was incorporated in September 1997 and is engaged in the manufacturing and assembly of high-quality measurement and filtration equipment. It caters to industries such as oil, gas, chemicals, and other fluid-handling sectors. The company focuses on delivering innovative and customized solutions tailored to meet the specific requirements of its industrial clients.

Business Operations and Capabilities
The company offers a complete range of services, including product design, process engineering, fabrication, assembly, and testing. Leveraging tools like Auto-CAD ELD and supporting design software, Cryogenic OGS ensures precise and efficient development of its equipment.

Product Portfolio
Cryogenic OGS’s product offerings include:

• Basket Strainers: Protect downstream equipment by removing debris from pipelines.
• Air Eliminators: Eliminate trapped air/gases in liquid systems to support accurate metering and system performance.
• Prover Tanks: Facilitate flow meter calibration for accurate industrial measurements.
• Additive Dosing Skids: Fully automated systems for continuous dosing of additives into main product lines.
• Truck Loading/Tank Wagon Loading Skids (Liquid & Gas): Integrated systems for measurement, control, and filtration of liquids and gases.

Manufacturing Facility
The company’s manufacturing unit is based in Vadodara, Gujarat, and spans an area of 8,300 square meters. The facility supports complete in-house production and testing capabilities.

Certifications and Compliance
Cryogenic OGS has obtained several key certifications and registrations, which enhance its market credibility and ability to attract reputed clients. Its quality management system is certified for the production and supply of a wide range of skids and process equipment. The facility also complies with ISO standards for occupational health & safety and environmental management systems.

Workforce
As of March 31, 2024, the company employs 23 permanent staff members across its operations.

Strength

Strong and Reliable Product Technology: The company continuously delivers value to the industry by leveraging its core technologies and innovative ideas. Its wide range of products is built from high-quality materials, ensuring long-lasting and dependable performance tailored to meet client-specific needs.

Trusted Supplier Relationships: The company has established strong ties with its suppliers, enabling the timely and quality procurement of raw materials. These stable relationships support effective inventory management and ensure prompt delivery of quality products to customers.

Long-Standing Customer Relationships: The company has developed a stable customer base, particularly within top-tier oil and gas energy firms. These relationships have been built over decades, backed by a commitment to quality, on-time delivery, and continuous improvement through advanced technologies and efficient manufacturing practices.

Weakness

High Capital Requirements Due to Shift in Business Model: The company operates in a capital-intensive sector and is transitioning to a model that increases this intensity. Earlier, some components were supplied by customers, reducing capital needs. Now, under the new model, the company must provide all parts, significantly raising working capital requirements for project execution.

Dependency on Third-Party Manufacturers and Suppliers: The company relies on third-party manufacturers and suppliers for machine parts and materials. Risks such as labour shortages, strikes, or delays may impact project timelines and quality. Limited availability of skilled vendors or increased costs could require additional investment and adversely affect profitability.

Risk from Inaccurate Demand Forecasting: The company does not have long-term supply contracts and depends on short-term purchase orders, making accurate demand forecasting critical. Overestimating demand may lead to excess inventory, while underestimating it may cause production shortfalls and delayed deliveries—both negatively impacting financial performance.