Key Points of Gujarat Fluorochemicals Investment in EV Batteries, Solar $ Green Hydrogen:
- Gujarat Fluorochemicals (GFL) is investing between ₹4500-5000 crore over the next three years to expand its portfolio in the EV industry.
- GFL’s integrated battery chemicals complex in Dahej is almost complete, and the first phase will produce LiPF6, an essential electrolyte salt for lithium-ion batteries, with an initial capacity of 1,800 tonnes per annum (tpa).
- GFL plans to enhance capacity over the next three to four years to capitalize on the $300 billion global EV battery chain opportunity projected by 2030.
- GFL aims to produce PVDF electrode binders, battery chemicals, LiPF6, additives, and electrolyte formulations from its integrated battery complex in the EV battery sector.
- GFL is also setting up India’s first PVDF Film plant for solar panels, which will be operational in the next financial year.
- GFL has an inherent advantage in emerging areas such as green hydrogen, and it is developing its own PEMs to capitalize on the upcoming green hydrogen opportunity.
- GFL anticipates doubling its revenue in the next three years and maintaining an EBITDA margin of 30-35% at least.
- The InoxGFL group has three listed companies with revenues of ₹5,305.26 crore for the nine months ended FY2023 and a market capitalisation of ₹37,166.93 crore as of 31st March 2023.
Details of Gujarat Fluorochemicals Investment in EV Batteries, Solar $ Green Hydrogen:
In a bid to expand its portfolio in the rapidly growing electric vehicle (EV) industry, solar panels, hydrogen fuel cells, and electrolysers, Gujarat Fluorochemicals (GFL), the flagship company of InoxGFL group and a leader in fluorine chemistry, is set to invest between ₹4500-5000 crore over the next three years. GFL’s integrated battery chemicals complex, located in Dahej, is almost complete, and the first phase will produce LiPF6, an essential electrolyte salt for lithium-ion batteries, with an initial capacity of 1,800 tonnes per annum (tpa). GFL plans to enhance capacity over the next three to four years, according to Devansh Jain, Group Executive Director of InoxGFL group and son of Group Chairman Vivek Jain.
Devansh Jain also noted that this investment would be in addition to the ₹2,500 crore spent over the past two to three years in enhancing various capacities and setting up new facilities at GFL. The global EV battery chain opportunity is projected to be worth $300 billion by 2030, and GFL has the advantage of being the first mover in India and can compete with other global players. According to Devansh Jain, about a dozen companies are looking to establish EV battery manufacturing facilities in India in the coming years.
GFL aims to produce PVDF electrode binders, battery chemicals, LiPF6, additives, and electrolyte formulations from its integrated battery complex in the EV battery sector. The company has already developed PVDF grades for cathode binder applications and is in discussions with both battery makers and vehicle original equipment manufacturers (OEMs) for supplies in India and globally.
GFL is also setting up India’s first PVDF Film plant for solar panels, which will be operational in the next financial year. GFL has integrated PVDF manufacturing facilities, and PVDF film-based backsheets are critical raw materials for making solar panels. Furthermore, GFL has an inherent advantage in emerging areas such as green hydrogen, according to Devansh Jain. Electrolysers convert renewable energy such as wind and solar power into green hydrogen, and fluoropolymers are critical to their operation. Additionally, fluoropolymer-based proton exchange membranes (PEM) form the heart of fuel cells and electrolysers. According to Devansh Jain, the company is developing its own PEMs to capitalize on the upcoming green hydrogen opportunity.
An ICICI Securities report stated that “GFL is well placed to increase its revenues on the back of its significant exposure to new-age industries of battery, solar, and green hydrogen. It aspires to double the revenue in the next three years and maintain an EBITDA margin of 30-35% at least.”
GFL, which has nearly doubled its turnover since FY2019, anticipates revenues of nearly Rs 6,000 crore in FY23, according to Devansh Jain. GFL’s revenues in FY19 were ₹2,729 crore, while FY22 revenues were ₹3,954 crore, and for 9M FY23, the company achieved ₹4,213 crore at 35% growth over the previous year.
The Inox group, which is over a century old, was amicably bifurcated between patriarch Devendra Jain’s two sons – Pavan and Vivek – in December 2021. Pavan Jain received the industrial gas and multiplex business, while Vivek Jain received GFL and renewable businesses. Currently, InoxGFL group has three listed companies with revenues of ₹5,305.26 crore for the nine months ended FY2023 and a market capitalisation of ₹37,166.93 crore as of 31st March 2023.
About Gujarat Fluorochemicals:
Gujarat Fluorochemicals Limited, based in India, is a manufacturer of industrial refrigerants. The company holds a significant position in the market as one of the largest producers of refrigerants, chloromethane, and polytetrafluoroethylene.
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