Section 1 – Overview

GFCL EV Products Ltd is a 100% subsidiary of GFL (Gujrat Fluorochemical Limited) part of INOXGFL Group. The company is involved in manufacturing intermediate materials for lithium-ion batteries. The business focuses on chemicals and renewable energy that includes Fluoropolymers, Specialty Chemicals, Wind Energy & Renewables. The company operates in India but also focuses on US and EU catering to EV OEMs and battery manufacturers globally. It is one of the few large manufacturers globally covering 50% plus LFP cell bill of materials. Growing interest in GFCL EV Products Ltd Share and GFCL EV Products Unlisted Share reflects strong market focus on its future growth and potential listing journey.

Section 2 – How the Company Makes Money?

2A – Operational Model

• Procurement of Raw Materials & Backward Integration

This is the first and foremost step, here the company procures raw materials such as Fluorspar mines and in-house Anhydrous Hydrofluoric Acid / AHF via their parent – GFL. It helps the company minimize raw material price volatility risk, reduce reliance on global suppliers, protection from other players in the market. 

• Advanced Chemical Processing

After the raw material is procured, company proceeds with manufacturing of internal materials required in the making of battery cell. It includes:

• Electrolyte Salts & Additives - (LiPF6, NaPF6, LiFSI, VC)

• Fluoropolymers - Inoflar PVDF binders

• Cathode Active Material - Lithium Ferro Phosphate (LFP) as Cathode Active Material (CAM)

• Quality Testing combined with R&D

Internal materials required battery manufacturing are hazardous and require quality testing. Quality assurance is utmost important; hence the final product goes through rigorous in-house lab testing. 

• Customer Audit 

Once the final product is tested and ensured that quality meets the global standard, customer audit and validation stage follows. This part involves deep vetting process by global OEM. Customer audit may take months and even years before placing commercial order. 

• Supply and B2B Distribution

Here, the commercial orders are placed by automakers, and gigafactories across domestic and global landscape. Apart from India, GFCL also targets US and EU markets, providing opportunity to de-risk their supply chain – which dominated by China – those commands more than 95% of the global battery material supply.

2B – Revenue Model

Global concern for environment stimulated EV adoption – and EV runs on batteries. Revenue model of GFCL runs on manufacturing internal chemicals and materials required in the formation of battery that forms upto 50% of the battery cost. Since, battery is the powerhouse for EV – the business and revenue model of GFCL is sustainable and future oriented. Sectoral Tailwinds are in favor. 

GFCL generates revenue from the following streams:

• Fluoropolymers: 40-50% of the company’s revenue comes from fluoropolymers – they are highly known for their outstanding chemical resistance, durability and thermal stability. 

• Refrigerants: GFCL is one of the largest refrigerant gases manufacturers in India – producing gases like R22, R32, R125, R410A and sold under the brand Rafron. It targets industries like air conditioning, refrigeration, automotive HVAC systems and etc. It constitutes upto 25% of the total revenue.

• Fluorospecialities: It also supports other industries like pharma and agrochemical. Combining molecule of fluorine to drugs and pesticides increases the metabolic stability and effectiveness. It constitutes 10-15% of the total revenue. 

• Bulk Orders: Company also makes money by securing bulk orders of low margin chemicals such as caustic soda, chlorine and chloromethanes. This segment constitutes upto 5-10% of the revenue. 

Section – 3 Competitive Landscape

India is a minority supplier in fluorochemical global market. It accounts for approx. 5-7% of global supply. India is a rising hub within Asia-Pacific region and is expected to scale at 10% CAGR. 

 Global Players

Chemours (US), Daikin (Japan), AGC (Japan), Syensqo (Belgium) are some of the major global players in fluorochemical industry. They are highly specialized and advanced material producers. 

• Chemours (US): The company produces and sell chemical and related products such refrigerants, titanium dioxide pigment, and industrial fluoropolymer resins. It has global footprints in more than 110 countries. It commands approx. 12% of global market share.

• Daikin (Japan): Daikin is the worlds leading manufacturer in heating, ventilation, air conditioning, and refrigeration (HVAC&R) solutions. Headquartered in Osaka, Japan. The company has presence in more than 170 countries and employs 96000 employees. It commands appr. 11% of market share. 

• Syensqo (Belgium): Established and headquartered in Brussels, Belgium, the company is involved in the production of specialty polymers, and chemicals and aids industries like automotive, aerospace and electronics. It constitutes approx. 8% of market share. 

While all of these global players command the international market, but GFCL has been able to compete on prices due to domestic supply of raw material with backing of parent.

Domestic Peers

• Neogen Ionics: It is a fully-owned subsidiary of Neogen Chemicals, that specially focuses on manufacturing of battery chemicals and intermediate materials such as lithium battery ions, electrolyte salts and additives. 

• Himadri Specialty Chemical ltd: With the market capitalization of approx. INR 30,000 Cr. the company operates in two verticals: Carbon material & Chemicals and Power. The company is a market leader holding almost 70% of domestic market share in coal tar pitch manufacturing. 

GFCL stand apart from its competitors due to its combining ability of electrolyte cells, PVDF binders, and cathode materials under the one roof. GFCL EV is heavily funded – INR 6000 Cr, the company is absorbing loses to secure its long-term position and market share.

Section – 4 Key People

Following are the key managerial persons defining the growth story of GFCL:

• Vivek Kumar Jain — Managing Director, GFL

• Devansh Jain — Executive Director, InoxGFL Group

• Dr. Bir Kapoor — CEO & Whole-Time Director, GFL

• Manoj Agrawal — Chief Financial Officer (CFO), GFL

Section – 5 Financial and Shareholding Pattern

Market participants continue to monitor GFCL EV Products for potential future listing developments, including a possible GFCL EV Products IPO, given its concentrated promoter holding and strategic sector positioning.