Gujarat Fluorochemicals Ltd.'s subsidiary GFCL EV Products Ltd. raised Rs 1,000 crore from several marquee investors to expand battery chemicals business as transition to electric vehicles firms up. The fundraise values the unit at Rs 25,000 crore.
"The promoters of the INOXGFL Group led the round in the fund raise along with several marquee investors, including the family offices of some of the largest business groups in India," a statement said on Wednesday.
The funds will be utilised for the capex requirements of the company as it scales up to capitalise on the large-scale global opportunities in the electric vehicles and energy storage systems (ESS) space, it added.
GFCL EV Products' current portfolio caters to both EV and ESS ecosystem. It includes battery chemicals (electrolyte salts LiPF6, electrolyte formulations, additives for enhanced performance), cathode active materials (LFP) and binders (both PVDF and PTFE).
The company said it has fully integrated manufacturing capabilities with backward integration into AHF, LiF and captive fluorspar.
GFCL EV has already started the sampling and validation process and expects to commence commercial sales by the March quarter, said Bir Kapoor, deputy managing director and CEO of GFL.
Gujarat Fluorochemicals is part of the INOXGFL Group and a producer of fluoropolymers, fluorochemicals and battery materials. It has three manufacturing units in Gujarat, including one at Dahej, and a captive Fluorspar mine in Morocco.
The company is due to announce its September quarter results on Oct. 29.
Gujarat Fluorochemicals share price closed 2% lower at Rs 4,715 apiece on Tuesday, compared to a 1.25% decline in the benchmark Nifty 50.
EV Push
Last month, the government notified a new subsidy scheme for adoption of electric vehicles in the world’s third-largest automotive industry, even as the transition to electric mobility lags globally.
Called the PM Drive Revolution in Innovative Vehicle Enhancement, or PM E-Drive, the new EV subsidy scheme has a total outlay of Rs 10,900 crore to target nearly 30 lakh electric vehicles over a period of two years. Additionally, Rs 7,171 crore has been set aside for building the charging infrastructure in India—a first for the nascent electric mobility ecosystem.
India has set an ambitious target of 30% EV penetration by 2030. Automakers, both domestic and foreign, have in recent years beefed up their line-up of EV and hybrid cars to cater to rising demand.
Earlier this month, Exide Industries Ltd., a leading acid-battery supplier in India, made an additional investment of Rs 100 crore in its wholly-owned arm, Exide Energy Solutions Ltd., on a rights basis. The unit is engaged in the business of manufacturing and selling lithium-ion battery cells, modules and packs for India's electric vehicle market and stationary applications.
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