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Gujarat Fluorochem has announced to expand refrigerant capacity

ICICIdirect Research 30 Jun 2026 DISCLAIMER

News: Gujarat Fluorochem has announced to expand refrigerant capacity and fully utilize its refrigerant gas entitlement under the Montreal Protocol and the Kigali Amendment. GFL’s refrigerant gas portfolio currently comprises R32, R22, R125, and R410A. The planned addition of R134A capacity will further strengthen this portfolio, enabling the company to offer a more comprehensive product basket, address diverse customer requirements, optimize its product mix, and maximize the utilization of its refrigerant gas entitlement as per the designated quota under the Kigali Amendment

View: While there is no specific rationale specified by the management other than the quota entitlement play, we think this is an opportunist kind of a move to capture the global non-Chinese void in the backdrop of recent Chinese embargo to restrict bulk Chinese R134A allocation besides anti-dumping by India on Chinese imports. There will be a manufacturing restriction from the Ministry of Environment in India as well post December 2027. Adding R134A is expected to strengthen GFL’s Ref Gas portfolio and also the overall Fluoropolymers segment (63% of the revenues). We will get some more insights in Q1FY27 earnings call.

Impact: Positive

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