Have been getting some persistent requests for a comprehensive update on Gujarat Fluorochem.
My colleagues are diligently working on getting the Stock Story published soon. It’s probably one of the most complex businesses to put through “crisply” – like we try to do in VP style. So please bear with us for a few more days.
Meanwhile just to clarify/put some nerves at rest:
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We see no significant change in the business trajectory for Gujarat Fluorochem in the near to medium term, than has been outlined in great detail by @Anant @spatel @ganeshrpl @rupeshtatiya and many others in this excellent deep dive thread
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If anything, Industry Tailwinds continue to be strong and Gujarat Fluorochem Competitive Position has only got better/stronger every 6 months (as we unearthed more about its accomplishments); check out the exemplary handling of PFAS issues earlier compiled beautifully by @spatel
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Refrigerant Gases data points – our research shows Refrigerant Gases revenue contribution ~330 Cr in FY22 (similar to FY21), and ~600 Cr on TTM basis. R125 Sales contributed ~100 Cr and ~150 Cr in Q1 and Q2 FY23 respectively. We should come to know about Q3 FY23 contributions shortly, when results are announced
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LiPF6 vs LiPSI data points – Newly introduced Tesla 4860 batteries and CATL Kirin batteries are featured by fast charge battery cells. In term of conductivity and solubility, two key indexes for fast charge, LiFSI enjoys an advantage over LiPF6. Thus, the increasing demand for new type batteries will advance the development of LiFSI.
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By our reckoning though, to get to becoming a LiFSI vendor to Battery customers, one needs to go through the LiPF6 vendor approval route first. LiFSI use sure is increasing from high-end battery applications (Tesla 4860 and CATL Kirin batteries), but LiPF6 isn’t going away, and may remain clearly different segments. Read more here
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Following excerpt from Earnings Call July, 2022 is informative.
Not only LiFSI but company is working on evaluating several other additives
- LiPF6 here to stay data points – Lets’ examine LiPF6 new capacity additions by battery electrolyte manufacturers including Tianci
- Shinghwa Advanced Material – 100,000 MTPA liquid LiPF6 – 27 Oct 2022 announcement
- Tianci LiPF6 capacity addition
[will add in other capacity additions including Tianci post dinner break]
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