Investment Scale-Up

SRF Increases Capex to ₹2,285 Crore for Next-Gen Refrigerant Facilities

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BSE

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SRF Limited has revised and increased its capital expenditure plan from ₹1,100 crore to ₹2,285 crore for setting up next-generation refrigerant facilities, including HFO and AHF plants, strengthening its fluorochemicals value chain.

PRICE-SENSITIVE TRIGGER

Event: Capex Revision & Expansion

Type: Investment Scale-Up

Impact: Positive

Immediate Effect: Signals strong demand outlook and aggressive expansion in high-value fluorochemicals segment

Key Metrics:

Previous Capex: ₹1,100 Crore
Revised Capex: ₹2,285 Crore
Increase: ₹1,185 Crore (~2x expansion)
HFO Capacity: 20,000 MTPA
AHF Capacity: 30,000 MTPA

Highlight:

Capex more than doubled to ₹2,285 crore, indicating strong growth confidence

What Happened ?

SRF Limited announced that its Board has approved an enhanced capital expenditure of ₹2,285 crore for setting up production facilities for fourth-generation refrigerants, following a revision in project scope.

key highlights

Capex Scope & Strategic Expansion:

Establishment of 20,000 MTPA HFO (Hydrofluoroolefins) plant
Setting up 30,000 MTPA AHF (Anhydrous Hydrogen Fluoride) plant
Forward integration into value-added VHF products
Development of supporting infrastructure and utilities
Project location: Gopalpur, Odisha
Completion target: February 2028
Funded via debt and internal accruals

Note:

The expansion focuses on next-generation refrigerants aligned with global environmental regulations

Risk Analysis

Key Risks

Execution risk in large, complex chemical projects
Demand uncertainty in HFO markets
Regulatory changes affecting refrigerant demand
High capital intensity impacting return ratios

Worst Case Scenario

If demand or pricing weakens, returns on the expanded capex may be delayed

Risk Level: Medium

Company Commentary

Capex revised due to project scope expansion
Focus on next-generation refrigerants
Strengthening integrated fluorochemical value chain
Investment aligned with anticipated global demand

Official Exchange Filing: SRF Limited