1. What is the business model of GFCL EV Products Limited?
GFCL EV Products Limited is a wholly-owned subsidiary of Gujarat Fluorochemicals Limited (GFL). Its business model is centred around capitalising on the global energy transition by becoming a key supplier of battery materials to Electric Vehicle (EV) and Energy Storage System (ESS) manufacturers globally.
Key Highlights of Business Model:
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Manufacturing & supply of battery materials across 50%+ of the lithium-ion battery value chain.
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Backward integration strategy to ensure supply chain resilience and reduce dependence on China.
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Product Portfolio includes:
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Cathode Active Material (CAM) — Mainly Lithium Iron Phosphate (LFP).
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Electrolytes — Salts, Additives, Formulations.
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Binders — PVDF and PTFE.
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Battery chemistry agnostic product development.
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Target Geographies: India, USA, and EU.
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Long-term supply contracts with leading EV OEMs and battery manufacturers.
2. Is GFCL EV a 100% subsidiary of Gujarat Fluorochemicals Limited (GFL)?
Yes.
GFCL EV Products Limited was incorporated on 11th June 2021 as a wholly-owned subsidiary of Gujarat Fluorochemicals Limited (GFL).
3. What is the opportunity size and Total Addressable Market (TAM)?
Global Battery Market:
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2023 TAM: USD 120.74 Billion
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2030E TAM: USD 300 Billion
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Expected CAGR: 15.4% (2023-2031)
Li-Battery Materials Market (Ex-China):
GFCL EV's Addressable Market:
4. What valuation did GFCL EV achieve in its recent fundraise?
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GFCL EV has raised ₹800 crore recently through equity issuance.
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Implied Valuation: As on 31.02.2024, total outstanding shares are 707,52,65,304 and shares are issued at INR 35 per share. So, Mcap is ~25000 Cr. After fund raise total shares outstanding are; 730,35,50,984
- It is subsidiary of GFCL ( Listed Player ).
5. What is the expected Asset Turnover Ratio?
6. Has commercial production started?
Yes, partially.
Status:
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Initial capacities have been commercialised at Jolva, Gujarat.
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Commercial supplies to start from Q4 FY25 for:
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LFP Cathode Plant is expected to be commissioned in Q4 FY25 (post longer qualification cycle).
7. Who are the investors in the recent funding round?
GFL has invested ₹650 crore (till Dec 2023) and is expected to infuse ₹800 crore by FY24 end.
External Investors:
8. What are the key risks involved?
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Competition from global players, especially China.
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Delays in customer qualification processes.
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Execution risk in scaling production rapidly.
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Heavy dependence on USA market & IRA incentives.
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High valuation risk considering minimal current revenue.
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Supply chain risk — securing raw materials (especially lithium).
9. Who are the potential customers of GFCL EV?
GFCL EV is targeting:
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Global & domestic EV OEMs.
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Battery manufacturers for long-term supply contracts.
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Actively engaged with 20+ potential customers globally.
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Focus geographies — India, USA, and EU.
10. What is the total Capex plan for the next 2-3 years?
11. What are the revenue and PAT projections of GFCL EV?
Revenue Projections:
PAT Projections:
12. Where are GFCL EV's manufacturing facilities located?
Primary Facility:
Support from Parent GFL Facilities:
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Dahej, Gujarat
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Ranjitnagar, Gujarat
(For production of intermediates & battery materials)
Summary View:
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