Navin Fluorine bags a multi-year contract worth Rs 800 crore
Navin Fluorine International Limited manufactures and sells speciality fluorochemicals in India and internationally. The speciality chemical has rallied 41% in last one year but was out of favour recently on account of quarterly results which failed to impress the market participants.
An Arvind Mafatlal Group company, it primarily focuses on fluorine chemistry - producing refrigeration gases, inorganic fluorides, speciality organofluorines and offers Contract Research and Manufacturing Services. Its manufacturing facilities are located at Surat in Gujarat and Dewas in Madhya Pradesh.
Navin Fluorine Advanced Sciences Limited (‘NFASL’), a wholly-owned subsidiary of the company, has entered into a multi-year contract with a large multinational company for the manufacture and supply of a key agrochemical fluoro intermediate, the company informed in its exchange filing on November 10.
The project is expected to strengthen the product offerings as well as customer relationships along with providing building blocks for future growth with a peak revenue potential of Rs 150 to 170 crore per annum. The project will entail an investment of Rs 125 crore, which includes an approximate investment of Rs 14 crore for the expansion of the effluent treatment plant. The facility will be located at Dahej, in the state of Gujarat and will be funded through a mix of internal accruals and debt. The supplies are expected to commence by end of FY23.
“We continue to strengthen our leadership position in fluorine chemistry and look forward to further growing our key partnerships,“ stated Radhesh Welling, Managing Director of Navin Fluorine.
The Rs 800 crore multi-year deal is touted as a tailwind for the speciality chemical manufacturer and such the stock has shown some strength amid the positive sentiment for the bagged deal.
The stock is currently trading at Rs 3600.85 with a gain of 3.01% at 12.41 pm.
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