INOXGFL sees value unlocking opportunity in chemicals business, says Executive Director Jain

Inox Group Gujarat Fluorochemicals Limited (INOXGFL) sees value unlocking opportunities in its chemicals business, executive director Devansh Jain told Moneycontrol in an interview.

“We like to list companies,” said Jain, who along with his father Vivek has built a business in chemicals and renewable energy after a split in the INOX group. “In chemicals for sure, within the two businesses we spoke of, which are SPVs of GFL, Plus, there are various other things which we're doing in the chemical space, which could also potentially lead to more unlocking opportunities as we move forward,” Jain said.

Also read: INOXGFL to branch out into more chemical segments, sees strong growth in wind energy business: ED

GFL is a leading producer of fluoropolymers, fluorospecialities, refrigerants and chemicals for applications in various industries. It has three manufacturing facilities in India, a captive fluorspar mine in Morocco, and offices and warehouses in Europe and the USA.

It is one of the key players in fluoropolymers, which are used in lined pipes, pumps, tank and reactor linings, among others, and fluorospecialities markets.

Fluorochemicals are used in various sectors such as cooling, refrigerants, dyeing, automotive, electronics, agriculture, textiles, electronics, and pharmaceuticals.

Capex 

Asked about the GFL spending plans, Jain said, "GFL would only need about Rs 200-Rs 300 crore of capex in a year. All our primary capex is in GFCL EV, which is in GFL. So, while we may have announced in the next four to five years a capex plan of about six to seven thousand crores, GFL itself would need only two to three hundred crore of incremental capex."

GFCL EV Products has announced plans to invest Rs 6,000 crore over the next four to five years to boost the production capacity of electric vehicle battery materials.

“As EV chemicals kick in, they will be part of our high-end fluoropolymer business," Jain added.

The company expects fluoropolymers capacity to be 1,500 tonnes a month in the fourth quarter, which will then get utilised over a period of time, an executive said in a call with analysts.

Growth opportunity

The group's revenue rose 44 percent to Rs 5,685 crores in 2022-23 from the previous year. The company reported a revenue of Rs 3,954 in FY22, Rs 2,651 crore in FY21 and Rs 2,606 crore in FY20.

The demand for fluorochemicals has grown significantly with emerging sectors like electric vehicles, fuel cells and the coating of printed circuit boards increasingly adopting fluorine.

During 2022-23, the company has filed 26 patents in the fields of fluoropolymers, electric vehicles (EV) and fluorospeciality chemicals. Of the 26, four have been granted, the company's annual report said.

Talking about partnerships, Jain said GFL is in talks with some global and domestic companies but declined to name any.

Rachita Prasad heads Moneycontrol’s coverage of conventional and new energy, and infrastructure sectors. Rachita is passionate about energy transition and the global efforts against climate change, with special focus on India. Before joining Moneycontrol, she was an Assistant Editor at The Economic Times, where she wrote for the paper for over a decade and was a host on their podcast. Contact: [email protected]

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