Refex tanks up profit from HFC

Venkatachari Jagannathan
12 May 2006

Chennai: Every time the huge empty ISO tank goes to Singapore for filling with the hydro fluorocarbon (HFC) gas, young Anil Jain, managing director, Refex Refrigerants Limited feel elated. For the tanks not only come filled with gas but also with profits.

According to him the domestic market for the HFC gas is at a high. "The demand growth is whopping 500 per cent." However, a clear demand figure is not available.

Cashing on the demand increase, Jain is planning to expand his Rs16-crore, 40-tonne per month (tpm) HFC storage and refilling facility near Chennai to 250 tpm at an investment of Rs40 crore. The company will be doubling its cylinder strength to 10,000 soon.

"In terms of revenue the 250-tonne facility would fetch a turnover of Rs140 crore at the current prices." A refilling facility near Delhi is also being planned. Closing last year with a turnover of Rs11 crore, Refex Refrigerants is targetting a revenue of Rs60 crore this year.

Jain has already identified bulk clients to take care of the existing and the proposed capacity. According to him, Refex Refrigerants will soon start catering to Hyundai Motors' requirements. The carmaker has decided to expand its facility near Chennai.

Other carmakers like General Motors India and Hindustan Motors Limited too have approved his product. "Each car air conditioner requires between 600 grams to1kg of gas. "Car manufacturers like Hyundai and Maruti have expressed their plans to increase their production. The market for our gas is bright," says a beaming Jain.