KUALA LUMPUR: Integrated engineering solutions provider, Kelington Group Bhd, through its wholly-owned subsidiary, Ace Gases Technologies Pte Ltd, has announced the investment of approximately US$29.3 million (equivalent to approximately RM120 million) to construct a 300 tonnes per day merchant air separation unit (ASU) plant in Maharashtra, India.
The ASU plant will be developed as a standalone merchant plant on a site spanning approximately 20,000 square metres, enabling Kelington to serve a broad base of industrial gas customers across Maharashtra and neighbouring markets.
The development will also include the supporting infrastructure, utilities, storage facilities and distribution systems required for the production and supply of industrial gases.
The investment is expected to strengthen the group’s industrial gas presence in India by providing a local source of supply to support demand from industrial and manufacturing customers in the region.
Development works are expected to commence in August 2026 and are targeted for completion by Q3 of 2028, subject to the necessary certificates, licenses, permits and approvals required for the construction and operation of the ASU plant.
The investment will be funded through a combination of internally generated funds and bank borrowings.
Kelington CEO Lim Seng Chuan said this marks the group’s first industrial gas production facility in India and represents a meaningful milestone in its regional expansion strategy.
“Maharashtra offers a compelling combination of strategic location, growing industrial base and an underserved industrial gas market.
“By establishing a local ASU plant, Kelington will be well positioned to capture rising demand from customers seeking reliable and locally available industrial gases,” he said.
An ASU plant is an industrial facility that separates atmospheric air into its primary component gases, such as nitrogen, oxygen, and argon.
These gases serve as critical inputs across a wide range of industries, including medical oxygen, electronics, healthcare, metallurgy, chemicals, automotive, pharmaceuticals, food processing, engineering and other manufacturing activities.
Strategically located in Maharashtra, the investment positions Kelington to capitalise on the region’s established industrial base and continued industrial expansion.
Maharashtra is India’s largest state economy by nominal gross state domestic product, accounting for 14.0% of India’s nominal GDP.
Anchored by Mumbai, India’s financial capital, the state remains a key driver of the country’s economic growth.
According to the Economic Survey of Maharashtra 2025-26, the state’s industrial sector is expected to grow by 5.7% in 2025-26, with manufacturing projected to expand by 5.9%.
This growth trajectory is expected to support rising demand for reliable industrial gas supply.
The plant’s location is also expected to provide logistical advantages in serving customers across key industrial areas within Maharashtra and surrounding regions, while positioning Kelington to support the state’s future manufacturing and industrial development.
Maharashtra is one of India’s leading industrial states, supported by a sizeable manufacturing base.
Maharashtra is also strategically connected to major industrial and commercial centres such as Mumbai and Pune.
The wider region attracts a diverse range of manufacturing activities, including automotive and auto components, engineering, steel, pharmaceuticals, chemicals, food processing, defence, and aerospace-related manufacturing.
Building upon that, the investment is underpinned by a supportive policy and infrastructure foundation.
The plant site is expected to benefit from reliable grid and open-access power, which is critical to ensuring a stable and cost-effective electricity supply, complemented by attractive foreign direct investment incentives and tax rebates.
In addition, the region’s continued industrial development, including the expansion of Maharashtra Industrial Development Corporation (MIDC) industrial zones, is expected to support long-term demand for industrial gases in the region.
Ace Gases managing director Ryan Chong Ann Tsun said the Maharashtra ASU plant is designed to address a clear market need for reliable, locally produced industrial gases.
“The standalone merchant model gives us the flexibility to serve a wider base of customers across multiple industries, while the plant’s location provides logistical advantages in reaching key industrial clusters within Maharashtra and neighbouring markets.
“As the project moves toward construction and commercial operations, our priority will be to deepen engagement with industrial customers across the region and build a diversified customer base across multiple sectors,” he said.
This expansion reflects the group’s long-term strategy to scale its industrial gas segment and reinforces its commitment to delivering sustainable value to shareholders.
The group looks forward to playing an active role in India’s industrial growth, supported by rising demand for locally produced industrial gases.
.jpg)