Gujarat Fluorochemicals (GFL) has said that its subsidiary, GFCL EV Products (GFCL EV), raised ₹1,000 crore at an equity valuation of ₹25,000 crore. The capital will be used to expand its battery chemicals business as the transition to electric vehicles firms up, the parent company says in an exchange filing today.
“The promoters of the INOXGFL Group led the round in the fundraise along with several marquee investors, including the family offices of some of the largest business groups in India,” the release notes.
The funds will be used to meet the subsidiary’s capex needs for scaling up to capture major global opportunities in the electric vehicles (EV) and energy storage systems (ESS) sectors, as per the release.
GFL says that the subsidiary aims to capture a significant share of the global battery materials market and become a preferred partner for EV and ESS battery manufacturers. GFCL EV aims to leverage global opportunities, particularly driven by the US Inflation Reduction Act (IRA) and the strategic diversification of supply chains.
With fully integrated manufacturing capabilities, including backward integration into AHF (Active Harmonic Filter), LiF, and captive fluorspar, the company offers a diversified product portfolio that includes battery chemicals like LiPF6 electrolyte salts, electrolyte formulations, performance-enhancing additives, cathode active materials (LFP), and binders (PVDF and PTFE).
“At INOXGFL Group, we are playing a significant role in the entire energy transition space, be it EV, green hydrogen, wind or the solar ecosystem. GFCL EV is on the path to deliver exponential growth going ahead, as it scales up and becomes the preferred supplier of some of the largest global OEMs in the auto industry,” said Devansh Jain, Executive Director, INOXGFL Group in an official statement.
“We are delighted to have the backing of some of the largest and most esteemed investors in the fundraise for GFCL EV. GFCL EV has already started the sampling and validation process and expects to commence commercial sales by Q4 FY25,” said Bir Kapoor, DMD & CEO, GFL in the statement.
Part of the INOXGFL Group, Gujarat Fluorochemicals produces fluoropolymers, fluorochemicals, and battery materials. It operates three manufacturing units in Gujarat, including one at Dahej, and owns a captive fluorspar mine in Morocco. The company is set to announce its September quarter results on October 29.
The global EV battery market is projected to reach $300 billion by 2030, with lithium battery demand expected to grow from around 1,100 GWh to 5,000-6,000 GWh by 2030.
India recently introduced the PM E-Drive subsidy scheme, with a total outlay of ₹10,900 crore, aimed at boosting the adoption of nearly 30 lakh electric vehicles over two years. An additional ₹7,171 crore has been allocated to develop charging infrastructure, marking a significant step in the country's electric mobility push. With a goal of 30% EV penetration by 2030, automakers have expanded their EV and hybrid offerings to meet rising demand.
