But there seem to be many suppliers, even in India, just googling found this, actually quite good study by Ashok Leyland about the type-4, comparing it to 1, 2 and 3 in weight and costs. There are more actually since the report is ~4 years old!
Also, a cascade is a substitute for a full-sized tanker, that’s it and it does not look economical to me.
It only makes sense to save weight while transporting and not for static use.
A 6 ton gross weight truck (LCV) can only transport 1.5 ton of CNG in cascade config!
2.2 Ton is the weight of steel frame-work supporting the 24 cylinders!
There are some metal CNG cylinder manufacturers at present but they will not be commercially viable due to certain advantages of Type IV Composites.
Right now Indoruss Synergy is importer, soon planning to start manufacturing in India may be with technological tie up with foreign player.
we dont know Indoruss Synergy’s abilities and techno-commercial terms with foreign player.
If foreign player find it more beneficial to directly bid, then we know what can happen.
So overall its going to be large market and every one will enjoy their pie.
The Company has adapted its successful Composite Cylinder technology for developing Carbon Fibre reinforced Composite Cylinders (Type 3) for Oxygen.
The first prototype has been developed in 10 ltr capacity at 200 bar pressure can
carry sufficient medical grade Oxygen to serve for 7 hrs to a patient @ 5 ltr per minute. The fully
filled feather weight Composite Cylinder weighs approx. 6 kgs with valve and regulator as against
conventional Steel Cylinder of equivalent capacity weighing approx. 18 kgs. I
Once the present crisis for Oxygen Cylinder is over, Company would offer these Composite Oxygen
Cylinders for other major areas of applications for high altitudes, fire fighters and Self-contained
breathing apparatus ( SCBA) .
I think you are getting confused b/w CNG composite Type 4 cylinder and O2 Type3 cylinder. For former, they have already all approvals and have also got mini order of 41 crs.
I attended analyst meet yesterday. It was very useful. They are No.1 & 2 in many products they manufacture. The next big opportunity is expected from composite CNG cascade and onboard vehicle cylinders. This is high technology product. Pressure rating is 700 bar.
Management explained very well about the upcoming opportunities in CNG and LPG composite Type 4 cylinders. Conservative estimate from this opportunity is 2200Cr per year for next 5 to 6 years.
Management informed that they are planning divestment of non core/ less economical products and plants like furniture, battery etc. & concentrate o value added products.
Having been invested since long i will suggest to take management projections with pinch of salt. They built similar narrative on use of composite LPG cylinders in India, which still has not been approved by PSUs. They built similar narrative on pipes business with Jal jeevan mission. So i personally am waiting for the opportunity to play out.
Disclosure invested since 2017
Supreme is also a leading player in Type 4 composite LPG cylinder.
Disclosure : Tracking but not invested… Good to analyse this kind of Company for learning whether such kind of stocks are value traps or wealth creator…
Time is market leader in LPG cylinder in India. 2nd largest in the world.
Time Manufacture CNG cascade & cylinder. No one is manufacturing CNG type IV cylinder in India. It is highly technical product. CNG tank can withstand 700bar pressure. TTP is 4th manufacturer of type IV CNG c ylinder.
Supreme manfacture LPG cylinders which is 150 bar pressure.
irony with the Company is that it is one of the largest producer of Composite cylinders in the world but there there has been no demand from Oil Marketting company in India, however there seems to be a gradual shift and some OMC have now initiated for Composite cylinders. I believe cutomers would prefer safety over price and we can see a good demand picking up in future.
There main competitor in composite LPG cylinder can be Supreme Industries but the opportunity size can be so large that every body will have a decent share.
https://twitter.com/IndianOilcl?ref_src=twsrc^tfw|twcamp^tweetembed|twterm^1384014491122245632|twgr^|twcon^s1_&ref_url=https%3A%2F%2Fatznews.in%2F2021%2F04%2F21%2Findian-oil-introducing-the-all-new-composite-lpg-cylinders-from-indane-check-details-varpat%2F
Acceptability by IOCL is a big positive as customer acceptance will not be a issue as it is already accepted world over even in poor countries like Nepal, Bhutan etc For the last 4 to 5 years the Company was struggling to push through OMC but now it seems that the ice has been breaking…
There are decades where nothing happens and there are periods where decades happen…
may be the company might be at inflection curve… lets wait and see
Old but valuable report from Ashok Leyland :
This report explains various new and effective technologies in Cylinders that are available internationally, its regulatory requirements and usage. In India Type 1, 2, 3 have been
successfully used in Indian Automotive Industry .Chief Controller of Explosives (CCOE), Nagpur
is the approval authority for CNG Cylinders in India.
This unique report will also provide you with valuable information, insights about vehicles with Type 4 Cylinders, history of composite cylinders and detailed analysis of all the four types of
CNG Cylinders.
On January 12, the Bureau of Indian Standards (BIS) in New Delhi published a newly approved standard: Composite Cylinders for On-Board Storage of Compressed Natural gas (CNG) as a Fuel for Automotive Vehicle – Specification (IS 15935 : 2011).
and Time Technoplast is the first company to get PESO approval for Type 4 cylinders.
In a major step towards making India a gas-based economy and making CNG as the eco-friendly option for long distance transport in the country, Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel, today unveiled India’s first long distance CNG bus fitted with composite CNG cylinders, which can travel around 1000 kms in a single fill. The project has been executed by Indraprastha Gas Limited (IGL) and has been achieved through pioneering design of Type IV Composite Cylinders in buses, replacing traditional very heavy Type-I Carbon Steel cylinders. https://pib.gov.in/PressReleseDetail.aspx?PRID=1597433
@vikas_sinha I asked management about Indoruss Synergy, below is their reply,
Anil Jain:The answer is yes and no. They have got the approval for the assembly of the cascade because they don’t manufacture cylinder in India. And the Indoruss they have to get it from Korea. But incidentally, the import of composite cylinder is very expensive because of the import duty and approval process, etc. So we are pitching our composite cylinders to the CGDs and other OMCs, on the ground that we are the part of Atmanirbhar Bharat and I think the government directives are also very clear that high tech products which are available locally in India need to be preferred.
“INDORUSS SYNERGY PVT LIMITED in co operation with ROSTEC RT CHEMCOMPOSITE, RUSSIA ( a 50 Billion Euros Russian Conglomerate) & TK FUJIKAN CORPORATION, BUSAN, SOUTH KOREA have initiated the import and are shortly commencing set up of a fully automated Type 4 cylinder production line. Carbon Fibre based Type 4 Cylinders shall revolutionize the storage and transportation of CNG, HCNG, Hydrogen, BIOCNG in India.
These cylinders are technologically the most advanced High Pressure Cylinders and conform to ISO 1119-3:2013.
Indoruss Synergy is the 1st company in India to receive the PESO (Petroleum and Explosives Safety Organisation) for commercial sale of Type 4 CNG Composite Fiber based cylinders.”
Have they come up with any manufacturing facilities in India…
It apparently seems that Indoruss is merely a trading company…however it is mentioned that
INDORUSS SYNERGY PVT LIMITED in co operation with ROSTEC RT CHEMCOMPOSITE, RUSSIA ( a 50 Billion Euros Russian Conglomerate) & TK FUJIKAN CORPORATION, BUSAN, SOUTH KOREA have initiated the import and are shortly commencing set up of a fully automated Type 4 cylinder production line. Carbon Fibre based Type 4 Cylinders shall revolutionize the storage and transportation of CNG, HCNG, Hydrogen, BIOCNG in India.
These cylinders are technologically the most advanced High Pressure Cylinders and conform to ISO 1119-3:2013.
The goal of Indoruss is to supply new age Type 4 Carbon Fibre based CNG Cylinders to the wide network of City Gas Distribution and Automobile companies PAN India. Initially, these Type 4 cylinders are being imported from our import partner in Busan, South Korea. Subsequently, they will be produced indigineously in our own factory in India. Our partner plant has already been inspected and approved by the Petroleum & Explosive Safety Organisation (PESO) Govt of India.
The making of these cylinders is based on space technology and ensures a light-weight high-capacity container for CNG that is blast and shatter proof. Having this feasibility would make long distance travel on CNG a reality for all types of vehicles in near future.!
Peso approval , however it is for Korea Plant. Indoruss is their authorised distributors.
@shreyasnevatia I’m not really agree entirely with what he is saying in tweets,
his calculations are flawed and he did not even calculate maintenance capex when entire thread is written around it
and clearly he did not even calculate owners earnings
The CNG cascade buisness for the company appears to be:
i. Monopolisitc.
ii High entry barrier (in terms of time as PESO approval takes atleast 3 years plus product approval time of around 12 months from vendor institutions.) So any new entrant will be at least 4 years behind TTL).The slower the product approval from vendors the higher will be the entry barrier.
iii. Oppertunity size is very large.
iv. Government has focus and priority on CNG.
v. CNG is environmental friendly and has a long run way.
Recipes seems to be perfect but now it all depends on the Cheff(Management).
