National Oxygen Limited (**NOL**) is an **ISO 9001:2015** certified manufacturer and supplier of industrial and medical gases. The company is currently undergoing a strategic transformation, pivoting from a heavy manufacturing-centric model toward a leaner, high-margin healthcare and specialty gas provider. This transition is supported by aggressive asset monetization and debt reduction strategies. --- ### Core Product Portfolio and Market Segments NOL operates within a single primary business segment: **Industrial Gases**. The company provides essential gases in both **liquid and gaseous forms** to a diverse client base spanning the healthcare, steel, and chemical industries. * **Oxygen (Medical & Industrial):** High-purity medical oxygen for hospitals and industrial-grade oxygen for steel manufacturing and metal fabrication. * **Nitrogen:** Supplied for industrial cooling, food packaging, and inerting applications. * **Nitrous Oxide:** A specialty gas primarily used in medical anesthesia; production commenced at a new dedicated plant in **October 2024**. * **Dissolved Acetylene (DA) Gas:** Historically used for chemical synthesis and welding; however, manufacturing was discontinued at the Mathur unit as of **March 31, 2023**, as part of a strategic shift. * **Medical Equipment Trading:** A new revenue stream initiated in **August 2024**, focusing on the trading of medical devices to complement the gas supply business. --- ### Manufacturing Footprint and Operational Restructuring The company is transitioning toward a **"Liquid Compressing and Filling Station"** model to mitigate high overheads associated with full-scale manufacturing. | Facility | Location | Status & Recent Developments | | :--- | :--- | :--- | | **Factory 1** | Puducherry | **Operational.** Primary production hub. Experienced a major heat exchanger breakdown from **Jan 24, 2025, to Mar 07, 2025**, impacting FY25 output. | | **Factory 2** | Perundurai, Erode | **Operations Stopped (May 13, 2025).** Closed due to severe competition and unsustainable hikes in power, maintenance, and transport costs. | | **Factory 3** | Mathur, Pudukottai | **Repurposed/Sold.** DA Gas production ceased in 2023. **5.60 acres** of land/building sold in **July 2025** for **₹8.30 Crores**. | | **New Plot** | TANSIDCO Mathur | **Acquired (2023).** A **0.606-acre** plot dedicated to **Medical Oxygen Gas** compression and filling. | --- ### Strategic Financial Deleveraging NOL has aggressively utilized asset monetization to repair its balance sheet. The company’s net worth has historically been negative, but recent actions have significantly reduced financial liabilities. * **Debt Settlement:** The **₹8.30 Crore** proceeds from the Mathur property sale in July 2025 were fully utilized to settle **HDFC Bank term loans**. * **Exceptional Gains:** This sale resulted in a profit of **₹8.12 Crores**, recognized as an exceptional item in **Q1 FY2025-26**, drastically reducing interest burdens. * **Net Worth Trends:** * **March 31, 2023:** Net Worth **₹(-) 0.93 Crores** * **March 31, 2024:** Net Worth **₹(-) 0.99 Crores** * **March 31, 2025:** Net Worth **₹(-) 8.01 Crores** (Pre-asset sale impact) * **Capital Infusion:** In **March 2026**, the company proposed a preferential issue of **9,50,000 Equity Shares** to the Promoter Group (**Saraf Housing Development Pvt Ltd**) to further strengthen the capital base. This follows a **March 2024** allotment of **240,114 shares** at **₹130 per share**. --- ### Market Dynamics and Revenue Model NOL operates in a high-volume, low-margin environment characterized by intense regional competition. * **Contractual Stability:** The company secures **long-term contracts** with hospitals and industrial clients, providing a stable order book. * **Pricing Constraints:** Despite **repeated power tariff escalations** and rising transport costs, NOL has limited ability to raise retail prices due to aggressive price-cutting by competitors post-Covid-19. * **Regulatory Environment:** Operations are strictly governed by the **Explosives Act (1884)**, **Gas Cylinder Rules (2004)**, and the **Drugs & Cosmetics Act**. --- ### Governance and Leadership The company is led by the Promoter Group with long-term mandates to ensure strategic continuity. * **Mr. Rajesh Kumar Saraf (MD):** Re-appointed for **5 years** effective **August 1, 2024**. He holds a significant personal stake of **1,998,962 shares**. * **Mr. Gajanand Saraf (WTD):** Appointed for **5 years** effective **April 1, 2024**. * **Corporate Structure:** NOL has **no subsidiaries, associates, or joint ventures**, maintaining a simplified corporate structure. * **Compliance Status:** Operates under **SEBI (LODR) Regulation 15(2)** exemptions as paid-up capital is below **₹10 Crores** and net worth is below **₹25 Crores**. --- ### Risk Profile and Mitigation NOL manages risks through a formal framework integrated with its business planning. * **Competitive Risk:** The primary threat is rival manufacturers reducing prices to capture market share. NOL mitigates this by focusing on service reliability and expanding into specialty gases like Nitrous Oxide. * **Liquidity and Credit Risk:** Managed by a centralized treasury. As of March 2024, trade receivables stood at **₹6.11 Crores**, with **₹67.46 Lakhs** outstanding for over 180 days. * **Legal Contingencies:** The company is involved in various appeals with Tribunals. Management has made **no financial provisions** for these, asserting a strong legal position. * **Operational Risk:** Dependence on aging machinery (as evidenced by the Puducherry breakdown) is being addressed through the shift toward filling stations rather than heavy manufacturing.