India is a significant market for the automotive sector and the Indian government is encouraging automobile firms to manufacture electric vehicles for sustainable growth. However, just 1 percent of all automobiles produced in India each year are Electric Vehicles.
The government intends to improve this to 30 percent by 2030. The EV market is expected to exceed 300,000 units by 2025, with a compound annual growth rate (CAGR) of 59 percent.
Here are three such companies investing to enter the EV business
Neogen Chemicals Ltd
Neogen Chemicals Limited is a leading manufacturer of Bromine-based and Lithium-based specialty chemicals, Company has three decades of expertise in lithium salts.
The company belongs to the small-cap category with a market capitalization of Rs 3,988 crore. Shares were trading at Rs 1600.80 a share on June 27, down 1.39 percent from the previous close price.
In April 2023, Neogen Chemicals partnered with Japan’s MU Ionic Solutions to make electrolytes for EV batteries in India.
The company has announced to invest Rs 150 crore as capex for a 250 MT pilot battery electrolyte manufacturing project.
The company’s revenue increased by 41 percent yearly, from Rs 487 crore in FY 21-22 to Rs 686 crore in FY 22-23. Net profit has grown by 11 percent, from Rs 44 crore to Rs 49 crore.
Himadri Speciality Chemical Ltd
Himadri Speciality Chemical Ltd., one of India’s leading specialty chemical conglomerates, was the country’s first manufacturer and pioneer of the anode material required for lithium-ion batteries.
The company belongs to the small-cap category with a market capitalization of Rs 5,878 crores. Shares were trading at Rs 133.70 a share on June 27, up 1.32 percent from the previous close price.
In recent years, the company invested Rs 5.75 crores in Sicona Battery Technologies, an Australian startup that specialises in high-capacity silicon anode technology for lithium-ion batteries used in electric vehicles.
This investment will assist Himadri Speciality in accelerating Sicona’s product and technology development, as well as the commercialization of its silicon anode technology.
From Rs 2,791 crores in FY 21–22 to Rs 4,171 crores in FY 22–23, the company’s revenue climbed by 50 percent annually. From Rs 39 crores to Rs 215 crores, net profit increased by 415 percent.
Gujarat Fluorochemicals Ltd
Gujarat Fluorochemicals (GFL), is a leader in Fluorine chemistry. It is one of the top five worldwide fluoropolymer players, exporting to Europe, the Americas, Japan, and Asia.
The company belongs to the Mid-cap category with a market capitalization of Rs 33,184 crore. Shares were trading at Rs 3,018 a share on June 27, up 0.30 percent from the previous close price.
The company is expected to invest up to Rs 5000 crore in electric car batteries, solar panels, hydrogen fuel cells, and electrolyzers during the next three years.
GFL plans to make PVDF electrode binders (an important material to make higher-performance lithium-ion batteries), battery chemicals, LiPF6, additives, and electrolyte formulations from the integrated battery complex which are mainly used in electric vehicle batteries.
The company’s revenue increased by 44 percent yearly, from Rs 3,953 crore in FY 21-22 to Rs 5,684 crore in FY 22-23. Net profit has grown by 71 percent, from Rs 775 crore to Rs 1,323 crore.
Written by Omkar C
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