Shares of Ellenbarrie Industrial Gases Ltd soared around 8% in early trade on September 29 after the company secured a Rs 480.73 crore contract from Bharat Heavy Electricals (BHEL). 

Under the order, Ellenbarrie will design, engineer, supply, install, test and commission a 1,200 tonnes per day (TPD) cryogenic Air Separation Unit (ASU). The plant will be part of BHEL’s 2,000 TPD Coal to Ammonium Nitrate project at Bandhabal in Odisha’s Jharsuguda district. The contract is valued at Rs 480.73 crore excluding GST.

The project will be executed on a turnkey basis and includes pre-commissioning, trial runs, operator training, performance guarantee demonstrations, supply of spares and final handover. Ellenbarrie is expected to complete the project over eight quarters, with commissioning targeted for FY29. 

It is structured as a Build and Transfer project, meaning the company will not retain long-term ownership or operational responsibility for the plant.

The order is significant for Ellenbarrie as it marks its entry into large-scale coal gasification-related projects. According to the company, the plant will be its largest facility built so far and takes it into the group of companies capable of developing ASUs with capacity of more than 1,000 TPD.

Cryogenic ASUs are an important part of coal gasification projects as they produce oxygen and nitrogen required for the process. India’s National Coal Gasification Mission is aimed at increasing domestic coal gasification and reducing dependence on imported chemical and industrial feedstocks. The government has set a target of gasifying 100 million tonnes of coal annually by 2030.

For Ellenbarrie, the BHEL contract expands its engineering capabilities beyond its traditional industrial gas operations. The company had a market capitalisation of around Rs 5,060 crore, while its shares remained well above their 52-week low despite trading below the 52-week high of around Rs 501.

The contract therefore adds a sizeable order to Ellenbarrie’s pipeline while giving the company exposure to India’s emerging coal gasification infrastructure opportunity.

At 11:55 am, the shares of Ellenbarrie Industrial Gases were trading 2.52% higher at Rs 368.10 on NSE. 

Feeling overwhelmed by the markets? Let Tradz by EquityPandit be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!