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Chemplast Sanmar announces foray into a key component of SRF, Navin FluorineChemplast Sanmar Managing Director Ramkumar Shankar said the company has announced a greenfield capex of ₹340 crore for the production of R32 refrigerant gas.By Meghna Sen   May 14, 2025, 1:32:54 PM IST (Published)2 Min ReadShares of both SRF Ltd. and Navin Fluorine Ltd. are down 2% each on Wednesday, May 14. SRF stock is down for the second day in a row, while Navin Fluorine shares are down for third day running.

The decline comes after Chemplast Sanmar announced foray into R32 refrigerant gas segment.

Chemplast Sanmar Managing Director Ramkumar Shankar said the company has announced a greenfield capex of ₹340 crore for the production of R32 refrigerant gas.

"This project, along with the ongoing MPB expansion under the CMC business, reinforces its strategy to grow in the specialty chemicals space," he said in an investor presentation.

"R-32 has zero ODP (Ozone Depletion Potential). R-32 (Class 2L) has a low burning velocity, minimizing flame spread and reducing fire hazards," the company said.

This development led to drop in share prices of SRF Ltd and Navin Fluorine on May 14. Both companies are major producers of R32, a refrigerant widely used in air conditioning and refrigeration systems.

This development led to decline in share prices of SRF and Navin Fluorine. Both these companies are major producers of R32, which is used in air conditioning and low-temperature refrigeration systems. It absorbs heat and creates cool air.

While announcing its March quarter results, SRF pegged its capex guidance for FY26 at ₹2,200-2,300 crore, up sharply from ₹1,200 crore in FY25, but this primarily relates to projects already announced.

SRF's management guided to "flat-to-slightly positive" pricing moves in R32 and other HFC refrigerants (R134a, R125) from current levels. R32 export prices are seen eventually catching up with import prices. Management further said that it does not expect a major downturn in HFC prices, even after new capacities by competitors such as Gujarat Fluorochemicals are commissioned.

For the refrigerant R32, brokerage firm Kotak institutional Equities now assume a more gradual 5% inflation in price each year versus its previous assumption of 15% per annum; this is consistent with management’s near-term outlook.

Navin Fluorine has successfully commercialised additional R32 capacity in March 2025, which is now running at optimal levels. Management highlighted sustained demand and favorable pricing trends for both HFOs and R32s.

For FY26, NFIL has planned a capex outlay of ₹500–600 crore. The company aims to sustain EBITDA margins above current levels, expected to range between 23–27%, by focusing on operational efficiency, enhancing product mix, and controlling fixed costs.

Shares of SRF are now down 1.65% at ₹2,876.55, while those of Navin Fluorine are also down 0.92% at ₹4,295.90.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsChemplast SanmarNavin Fluorineshare market todaySRF