Key highlights from Gujarat Fluorochemicals Q3FY23 concall:
CMP: โน 2,856
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CMP: โน 2,856
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1. The company has reclassified its business into 3 business divisions which are as follows:
a) Bulk Chemicals which will contain caustic soda and chloromethanes.
b) Fluorochemicals which will refrigerant gases and fluoro specialties.
a) Bulk Chemicals which will contain caustic soda and chloromethanes.
b) Fluorochemicals which will refrigerant gases and fluoro specialties.
c)Fluoropolymers which will have the entire fluoropolymer product portfolio of PTFE, PVDF, PFA, FKM, FEP and others.
The bulk chemical plants are running at full capacity.
2. For fluoro specialties, the capex which was to come online in has now come online in Q3FY23.
The bulk chemical plants are running at full capacity.
2. For fluoro specialties, the capex which was to come online in has now come online in Q3FY23.
The delay in commissioning of this capex was due to severe rains in Gujarat. Under this capex, the company has done 2 sets of investments where one set is for backward integration and the other set is for new products. The new products are under the qualification process by the
companyโs customers and customers are expected to come on-board in the next 1-2 quarters.
3. For the refrigerant gases, the company is allowed to add R-22 capacities only for feedstock purpose and not for emissive purpose.
3. For the refrigerant gases, the company is allowed to add R-22 capacities only for feedstock purpose and not for emissive purpose.
The company uses refrigerant gases as a backward integration for making fluoropolymers and as per the norms for refrigerant gases there is no limit to adding capacities for feedstock purpose however, there is a limit to adding capacities for emissive use.
4. R-142b which is a refrigerant gas will majorly be used by the company as a backward integration for VDF and PVDF as has been indicated by the company earlier.
5. The company has complete backward integration for all its intermediate chemicals hence
5. The company has complete backward integration for all its intermediate chemicals hence
they would be insulated from all kinds of raw material price fluctuations.
6.The company is continuously expanding capacities of its fluoropolymer product portfolio to cater to the new age verticals like EV, green hydrogen, semiconductors, solar energy and 5G applications.
6.The company is continuously expanding capacities of its fluoropolymer product portfolio to cater to the new age verticals like EV, green hydrogen, semiconductors, solar energy and 5G applications.
7. The demand for fluoropolymers continues to remain stable along with stable prices. The investments on the fluoropolymer side are progressing well except some delays in equipment supply and the sales from fluoropolymers are expected to increase post-ramp up.
8. PTFE market right now is at 2,00,000 tons and is expected to go at a good rate going forward. The company is in process of debottlenecking its PTFE capacity which will increase to 21000 MTPA once the debottlenecking is done.
The plan of the company to quarters. on the growing PTFE market would be to first complete the debottlenecking of PTFE, get the capacity utilisation, then look for further debottlenecking or add more reactors as and when the demand comes up.
The company has adequate TFE capacity so they wonโt have any issue in capacity ramp-up of PTFE.
9. The company is doing capacity expansions for new fluoropolymers which include PVDF, FKM and PFA . The PFA made by the company will be used for semiconductor grade applications.
9. The company is doing capacity expansions for new fluoropolymers which include PVDF, FKM and PFA . The PFA made by the company will be used for semiconductor grade applications.
In PFA semiconductor grade applications, there are 4 players in the market and now 3M has made its exit from this market. The company has adequate TFE capacities and they are expanding PFA capacities by reactor addition.
The company expects to commence sales of PFA semiconductor grade in the next 3 quarters.
10. The battery chemicals project of the company is going as per their plan and is expected to come online by Q1FY24 as guided by the company earlier. Post the commissioning of this capex,
10. The battery chemicals project of the company is going as per their plan and is expected to come online by Q1FY24 as guided by the company earlier. Post the commissioning of this capex,
few quarters will be needed to get the product approvals for LiPF6 and the company is in discussions with battery manufacturers in India and overseas. The company expects to receive validation from its customers by Q4FY24.
The company initially will start with 1000 TPA of LiPF6 and they eventually plan to enter into battery chemicals other than LiPF6 to expand their battery chemicals product portfolio .LiPF6 will be the major battery chemical that will be used in EV batteries for now and for quite
sometime going forward. The company has already made arrangements for the other materials which will go into manufacturing of LiPF6 and for Lithium carbonate which will be the key starting material the company expects to get a long-term supply arrangement.
soon as lithium carbonate is not mined in India.
11. The company is planning to make PVDF films which will go into the back sheet of solar panels. The solar facility of the company is expected to be completed by July 2023.
11. The company is planning to make PVDF films which will go into the back sheet of solar panels. The solar facility of the company is expected to be completed by July 2023.
12. The company is developing the technology for Proton Exchange Membrane(PEM) for fuel cell and electrolyzers .The current progress is satisfactory and the company will take around 1 year to complete this project.
The company expects to complete the initial sample in the next 1-2 quarters
The company is expecting a 20-25% revenue CAGR every year.
The company is expecting a 20-25% revenue CAGR every year.
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