Key snippets from the AR FY 22.
FY22 Annual Report Analysis:
GFL is now among the top five global manufacturers of fluoropolymers. In line with our expansion plans, we have announced a capex of about Rs 2,750 crore during 2022-24 for battery chemicals, new fluoropolymers, PTFE, backward integration and allied infrastructure. Focus is on adding PVDF and FKM and backward integration to ensure raw material availability and optimise costs. Our major outlays of PVDF binders for EV batteries, PVDF Film for Solar Panels, Battery Chemicals for EV batteries and Proton Excahnge Membranes (PEM) for hydrogen electrolysers and fuel cells are promising products. For penetration in the EV space, the Company has commenced activities for its expansion of establishing dedicated plant for EV sector; The Company is also in process of setting up India’s first PVDF solar film project which will be commissioned in the next financial year with its own integrated PVDF manufacturing facilities. This plant will be ideally suited to cater to both domestic and international markets - Company is agressively targeting EV market
GFL aims to be a part of the ecosystem and is excited about penetrating the EV space that will open new avenues of growth. Having commenced operations for establishing a dedicated plant for the EV sector, we are hoping to establish ourselves as a major player in this space in India. In the specialty chemicals business we are particularly focusing on battery chemicals and we believe they will be the major growth drivers for the company
The fluoropolymer industry can be classified into oil & gas, semi-conductor, automotive, healthcare, electronics, construction and industrial processing. The growing use of Fluoropolymers in the above sectors will propel growth in the markets globally. The global arena is witnessing a paradigm shift in the automobile and telecom sectors with requirements of batteries for electric vehicles, semi-conductors and 5G networking for communication. Given this backdrop, it is anticipated that the consumption of Fluoropolymers will increase significantly.
During the year under review, we increased the capacity for Fluoroelastomers, VDF, PVDF, and R 142b. Polytetrafluoroethylene (PTFE) dispersions and polyvinylidene fluoride (PVDF) are developed with the Green NFPA standard. We believe our future growth trajectory will be led by fluoropolymers and fluorochemicals needed for EVs, solar power and green hydrogen – products, which currently are under various phases of development - Focus on Green Chemistry driven products
We have filed new patents Li based salt in lithium-ion battery, I-SAN and Non fluorinated Processing Aid (NFPA) for PVDF & other fluoropolymers. We have further expanded our patent portfolio this year and have entered into various countries, including USA, United Kingdom, European Union, China, Japan, Korea, Russia and Switzerland for Dispersion PTFE & PTFE Micropowders. We received patent approval for Non fluorinated surfactant last year. We have filed 18 patents and 67 trademarks till date.
We commissioned a new state-of-the-art piloting facility for fluoropolymers at the Dahej plant. In our Ranjitnagar R&D center, we introduce a new operation of R142b and successfully commercialized it, as well as modified the old operation technique with modern advanced technology equipment.
R&D Technology Transfers
“• GFL has made further investments incapacity expansion of fluoroelastomers grades for automotive and highperformance sealing application. Business volume is expected to increase further from Q3 2022-23.
• As a part of Make in India drive, a novel fluoroelastomers was developed to make o-rings & tight joints which is used in pressure regulator used in domestic LPG cylinders.
• GFL has successfully developed environment friendly new age surfactant system for polymerization of PTFE dispersion. Product is accepted globally and commercialized.
• GFL has developed PVDF based grades for battery binder application. Initial results are encouraging and gaining acceptance.
• GFL successfully developed PTFE micropowder based grade for water based coating formulation. Product is endorsed by key global companies.
• GFL-Ranjitnagar has made further investments in capacity expansion of R142b refrigerants grades used for thermostatic control switches, the intermediate of aerial propellant, and the important raw material for vinylidene fluoride. Business volume is expected to increase further from 2022-23.
• The new chemistry is developed in-house to cut down the job work and outsourcing techniques e.g., Balz- Schiemann, Photochlorination chemistry.
• GFL has successfully developed a greener route process for new API and Agro-based products like CFT, MTA, and 4-TFMA. The product is accepted by customers and ready for commercialization.
• GFL has more focus on the additives EV grade molecules which have great market demands e.g., FEC, VC.
• GFL successfully launched DCTFMA, BTF, 1,4 DFB, and EDFA which are commercialized and manufacture at the site to meet the customer’s orders.”
Lot of work happening on the new products. Good sign
Related Party Transactions
Receivable of 240+ Cr; Advances of ~875+ Cr and Corporate Guarantees of ~1800 Cr - All to Inox Wind, Inox Green Energy and Resco Global Wind Services - One concern Area which management needs to take care of
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