Gujarat Fluorochemicals Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMIC OVERVIEW

In 2024, the global economy expanded at a moderate pace of 3.3%, indicating a period of relative stability, though growth remained subdued. However, as 2025 progresses, the global landscape is undergoing a significant shift, driven by countries reordering their policy priorities in response to rising geopolitical tensions and growing economic challenges.

The U.S. has introduced a series of new tariff measures, prompting swift and forceful retaliations from major trading partners. This culminated in the implementation of near-universal tariffs in April 2025. As a result, effective tariff rates have surged to levels not seen in over a century, delivering a sharp and damaging shock to global growth.

The situation has been compounded by the pace and unpredictability of these policy changes, which have significantly heightened economic uncertainty and made the near-term outlook increasingly volatile. This growing instability has also undermined the reliability of traditional forecasting models, making it difficult to base projections on previously dependable assumptions.

Amidst this uncertainty, global headline inflation is expected to decline more slowly than earlier anticipated. It is now projected to ease to 4.3% in 2025 and further to 3.6% in 2026. The revision reflects higher inflation estimates for advanced economies, partially offset by marginal downward adjustments in emerging markets and developing economies.

Global Economic Growth (in %)

	2024	2025	2026 (P)
Global Economy	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Markets and Developing Economies	4.3	3.7	3.9

P: Projected

(Source: World Economic Outlook. April 2025)

Performance of Major Economies in 2024 United States: The U.S. economy is now expected to grow at 1.8% in 2025, reflecting a downward revision driven by the combined impact of restrictive monetary policy and escalating trade disruptions. Inflation is likely to remain elevated at around 3%, with recent tariff measures alone adding an estimated one percentage point. Domestic consumption is losing momentum, while the manufacturing sector is grappling with rising input costs amid persistent global supply chain pressures.

China: Chinas growth is also moderating, with forecasts revised to 4% in 2025, reflecting the impact of subdued external demand, ongoing internal deleveraging, and structural transitions towards a consumption-led economy. Inflation is expected to remain low, and could even turn deflationary. This trend raises concerns over underlying demand weakness and the potential for renewed credit stress, particularly within the property sector.

Euro Area: The eurozone remains weighed down by sluggish consumption and exports, with GDP growth revised to 0.8% in 2025. Political instability in some regions and persistent energy insecurity continue to undermine investor confidence, especially in Germany and France.

Emerging Markets and Developing Economies (EMDEs):

Growth across emerging market and developing economies is showing signs of moderation, with the impact particularly pronounced in countries such as Mexico, South Africa, and Argentina.

High debt levels and depreciating currencies in these markets are intensifying inflationary pressures and constraining policy flexibility. At the same time, many developing nations are grappling with tighter financing conditions and declining investor interest, further deepening economic vulnerabilities.

Concerns are rising over increasing financial system fragility, particularly in emerging markets and among non-bank financial institutions (NBFIs). Volatility in equity markets, stretched asset valuations, and persistently high corporate debt levels across several economies are contributing to an ncreasingly uncertain financial outlook. Central banks face a delicate balancing act as they attempt to manage inflation without triggering financial instability.

Emerging market economies are particularly exposed under current conditions. Rising sovereign debt servicing costs, capital outflows driven by widening interest rate differentials, and depreciating currencies are compounding inflationary pressures and macroeconomic vulnerabilities. Collectively, these factors increase the risk of abrupt investment halts and potential debt distress. Without timely multilateral support and the activation of structured debt resolution frameworks, financial stress in these economies could intensify further.

Road Ahead

Despite the challenges facing the global economy, this period offers a unique opportunity to strengthen resilience and chart a more sustainable path forward. The adaptability shown by many economies under pressure signals that recovery is possible with the right mix of coordinated policies and proactive reform.

By working together to establish a stable and transparent trade environment, advancing timely debt resolution, and addressing structural imbalances, countries can support a more balanced and inclusive global recovery. Maintaining clear monetary policy direction, using macroprudential tools as needed, and implementing credible fiscal plans will help restore financial stability and protect long-term growth.

International cooperation will be essential in navigating the road ahead. With aligned strategies, strong leadership, and a commitment to shared progress, the global economy can regain momentum, rebuild buffers, and open up new opportunities for prosperity across regions.

(Sources: https://www.imf.ora/en/PubHcations/WE0/lssues/2025/01/17/worlcl-economic-outlook-updateuanuarv-2025. https://busincsscconomics.in/imf-world-economic-outlook-januarv-2025-%E2%80%93-analvsisrcvicw. https://apnews. com/articlc/imf-tanff-trump-economic-growth-07f3afdcdld9c0df5c02c9c47a 13f264)

INDIAN ECONOMIC OVERVIEW

In 2024, global financial markets reflected contrasting trends, equities rallied across advanced economies, while emerging markets endured instability amid ongoing capital outflows and a resilient U.S. Dollar. Persistent inflation concerns and evolving interest rate expectations continued to weigh on economic outlooks, as prolonged policy tightening cast a shadow over growth prospects. Those nations with well-calibrated economic strategies and active participation in global cooperative frameworks were better equipped to navigate uncertainties and safeguard economic stability.

GDP Growth Projections (in %)

2020-21	2021-22	2022-23	2023-24	2024-25
9.05	7.0	7.2	8.2	6.5

Sector-wise Performance in 2024-25 Agriculture and Allied Sectors: in 2024-25, the agriculture and allied sectors are expected to regain momentum, registering a growth rate of 3.8% following a period of modest expansion. This resurgence is largely attributable to beneficial monsoon patterns that yielded a strong Kharif crop, thereby uplifting rural earnings and invigorating domestic consumption. Government-led programmes targeting farmer welfare and rural infrastructure development have further reinforced this upward trajectory, positioning the sector for sustained vitality and adaptive resilience.

Industrial Sector: The industrial sector is expected to grow by 5.2% in 2024-25, supported by strong growth in construction and marked improvements across core utilities, including electricity, gas, and water supply. The manufacturing segment has held firm, with higher output across key industries adding momentum to the broader industrial landscape. This revival points to a gradual strengthening of economic fundamentals and a more confident investment environment.

Services Sector: The services sector continues to play a central role in driving Indias economic growth. In the year ahead, financial, real estate, and professional services are expected to grow by 7.2%, pointing to steady demand and investment in these areas. Trade, transport, and communication are also set to expand by about 6.4%, a sign of improving business conditions and stronger consumer activity.

Construction Sector: Construction is set to grow by 8.6% in the upcoming fiscal year, propelled by accelerated nfrastructure rollout and rising investment levels. Public sector outlays on major development schemes have played a key role, spurring job creation and lending momentum to a range of supporting industries.

Between April and December 2024, India witnessed a decline in retail inflation, which fell to 4.9%, thanks in large part to stable food and fuel prices. This downward trend enabled the Reserve Bank of India (RBI) to implement a 25-basis points rate cut in February 2025, marking the first reduction in nearly five years. The central bank expects this more accommodative approach to foster greater investment and consumption, thus propelling further growth in the Indian economy.

In terms of fiscal policy, the government has set a target of 4.9% for the fiscal deficit relative to GDP for the 2024-25 period, a positive shift from the previous years 5.6%. To drive infrastructure development and promote economic growth, the Union Budget for 2025-26 has dedicated Rs. 11.21 Lakh Crores (approximately 3.1% of GDP) for capital expenditure. This considerable investment highlights the governments focus on enhancing infrastructure, creating employment opportunities, and fuelling growth across interconnected industries.

Indias trade performance for 2024-25 is likelytoseea positive shift, with merchandise exports set to grow steadily driven by solid global demand in industries such as engineering goods, pharmaceuticals, and electronics. Simultaneously import growth is expected to moderate, owing to falling crude oil prices and the expansion of domestic manufacturing, driven by the Production-Linked Incentive (PLI) schemes. As a result, the trade deficit is projected to narrow, reflecting a more balanced external trade scenario compared to the previous fiscal year. Additionally government-led initiatives such as export promotion strategies and free trade agreements are anticipated to further enhance Indias competitive edge in global trade.

Indias economic trajectory for 2024-25 is promising, supported by strong domestic consumption, expanding infrastructure, and favourable policy frameworks. While global uncertainties and trade-related challenges remain, Indias ongoing structural reforms, digital evolution, and manufacturing growth are expected to strengthen the countrys economic resilience in the long term. With a commitment to fiscal discipline, enhanced productivity and continuous innovation, India is determined to sustain its status as the fastest-growing major economy, fostering inclusive and sustainable growth.

Road Ahead

It is projected that the Indian economy will grow by 6.3% to 6.8% in the fiscal year 2025-26, with growth driven by ongoing structural reforms, digital innovation, and an expanding consumer base. Initiatives such as Make in India and the Production-Linked Incentive (PLI) programmes are integral to fostering a thriving manufacturing ecosystem. These initiatives are not only encouraging domestic production but also attracting substantial investments into strategic industries such as electronics, semiconductors, and renewable energy.

In addition, the development of large-scale infrastructure projects, including highways, ports, and smart cities, is expected to stimulate economic activity and generate significant employment opportunities. With continued government backing and strategic investments, India is well positioned to achieve sustainable growth, further solidifying its standing as a rising global economic powerhouse.

(Sources: https://pib.gov.in/PressReleasePage. aspx Rs.PRID=7098447&utm source=chatgpt.com. https:// www.reutei7com/world/india/indias-centml-hank- de.live.rs-frst-rate.-cut-ne.arly-B-ye.ars-7D7B-D7-D7/. https://www. ft. com/content/ace560e2-794c-4627 -a 57c- cc828c6f91 e4. https://pib. gov. in/PressReleaselframePage. aspx Rs.PRID=2098353&utm. https://www.reuters.com/ world/india/indias-economic-growth-picks-up-rising- aovernment-consumer-spending-2025-02-28. https:// www2.deloitte.com/us/en/insights/economy/asia-pacific/ india-cconomic-outlook)

INDUSTRY OVERVIEW Fluoropolymers Industry

The Global Fluoropolymer market is expected to witness substantial expansion, with its value projected to grow from USD 3.87 Billion in 2024 to USD 5.67 Billion by 2029, marking a compound annual growth rate (CAGR) of 7.92%. The key drivers of this growth are five emerging, high- mpact industries: electric vehicles (EVs), advanced battery technologies, semiconductor fabrication (semi-fabs), green hydrogen, renewable energy and artificial intelligence (Al). This trajectory is underpinned by rapid technological progress, rising cross-sectoral demand, and an intensified focus on environmentally responsible manufacturing.

Sustainability and Regulatory Landscape

The pursuit of sustainability is now a defining theme within the Fluoropolymer industry spurring innovation in cleaner manufacturing processes as well as foolproof end of life disposal techniques. Regulatory momentum, particularly in Europe, is reshaping industry norms. The 2023 REACH PFA restriction dossier imposed stringent limitations on Fluoropolymer applications, catalysing dialogue among policymakers and industry leaders. The Fluoropolymer Product Group (FPG) has been vocal in seeking exemptions, pointing to the limited maturity of alternative technologies and the inconclusive nature of environmental evidence. These discussions have culminated in concrete regulatory actions that restrict low molecular weight chemicals, while exempting long-chain fluoropolymers, which the OECD has classified as polymers of low concern.

Technological Advancements and Market Expansion

Fluoropolymer technology is evolving rapidly altering its role across numerous industries, its unique characteristics continue to be critical in aerospace and other high-demand sectors. To maintain their competitive edge, manufacturers are accelerating research and development efforts aimed at improving durability, optimising performance, and exploring new applications— particularly in renewable energy systems and modem manufacturing.

Raw Material Innovation and Supply Chain Optimisation

As sustainability concerns continue to rise, companies are prioritising innovations in raw materials and improving supply chain effectiveness. A notable advancement is the production of PVDF grades using anhydrous hydrogen fluoride (AHF) derived from fluosilicic acid, a byproduct of the phosphatic fertiliser industry, which significantly reduces the reliance on fluorspar mining. This innovation not only enhances resource utilisation but also reduces the environmental footprint, ensuring that product quality remains uncompromised.

Industry-wide Growth and Investment Trends

The Fluoropolymer market is gaining significant momentum across various sectors, driven by the rapid growth of infrastructure and technological advancements. Demand from the electrical and electronics industries continues to rise, fuelled by ongoing digitalisation and innovation. Simultaneously, the expansion of the construction sector highlights the increasing demand for durable, high-performance materials. In response, companies are ramping up their efforts in developing specialised products and refining existing formulations to meet evolving industry needs and performance standards.

(Source: https://www.mordorintelligence.com/industry-reoorts/fluoroDolymer-markct)

KEY FLUOROPOLYMERS Polytetrafluoroethylene (PTFE)

Polytetrafluoroethylene (PTFE) is the leading Fluoropolymer, commanding around 50% of global fluoropolymer consumption. This semi-crystalline polymer is celebrated for its resistance to ultraviolet radiation, superior dielectric strength, and exceptional chemical stability. Such properties render it invaluable in diverse industries, including construction, automotive, and medical fields. The growth of the PTFE market is largely fuelled by its unparalleled insulating capabilities in high-voltage and high-temperature environments, such as for electric vehicle technology.

USD 2.8 Billion	USD 3.5 Billion	4.3%
Market Size in 2024	Projected Market Size by 2029	Anticipated CAGR between 2024 and 2029

(Source: https://www.marketsandmarkets.com/Market- Reports/polytetrafluoroethvlene-market-22472807. html#:~:text=0verview.versatile%20material%20across%20 different% Rs.0sectors.)

Downstream Industries Served by GFL

-> Oil and Gas -> Pharma and CPI -> Food

Automotive

-> Chemical Industry -> Construction and Mechanical Parts -> Aerospace and Defence -> Electricals

-> Electronics and Semiconductors

Polyvinylidene Fluoride (PVDF)

The Polyvinylidene Fluoride (PVDF) market is on track for significant expansion, driven by continuous advancements in technology that have resulted in new PVDF grades with better performance. These developments are especially important for high-purity applications in semiconductor manufacturing and advanced electronics, responding to the rising demand for materials that can handle high performance. PVDFs broad appeal comes from its excellent chemical resistance, UV stability, and flame resistance, making it indispensable across industries. Its growing importance is further highlighted by the global shift towards smart manufacturing, particularly in China, where the government plans to digitise 70% of large firms by 2025. This transition opens up fresh possibilities for PVDF in precision equipment and components for smart manufacturing.

Significant capital is being channelled into expanding PVDF manufacturing and advancing related technologies, with significant momentum in EV batteries as a binder for cathodes and anodes, and in the electrical and electronics sector. As industries place increasing value on high- performance materials, PVDF stands at the forefront of innovation, driving progress in cutting-edge manufacturing processes and tech-forward applications.

USD 0.54 Billion	USD 1.23 Billion	18.05%
Market Size in 2024	Expected Market Size by 2029	Projected CAGR between 2024 and 2029

(Source: https://www.mordormtelhaence.com/mdustrv- reports/polyvinylidcnc-fluoridc-pvdf-markct)

Downstream Industries Served by GFL

-> EV Batteries -> Chemical Processing -> Electronics -> Architecture -> Pharma -> Solar Panels -> Water Treatment -> Membranes -> Oil and Gas

Fluorine Kautschuk Material (FKM)

Fluoroelastomers (FKM) represent a class of premium synthetic elastomers, renowned for their unparalleled resistance to heat, chemicals, and various fluids. These materials are extensively utilised in critical industries, including automotive, aerospace, oil and gas, and chemical processing, where they deliver highly effective sealing solutions for some of the most challenging environments.

Sectoral growth is being driven by the increasing need for high-performance elastomers, with particular emphasis on the automotive industry, where FKM contributes to improved fuel efficiency and greater durability in seals and gaskets. The aerospace and oil and gas industries also depend on FKM for its resilience in extreme conditions.

As technological advancements continue, material improvements are accelerating industry expansion. Plowever, the high manufacturing costs and complex production methods pose challenges, particularly for small and medium-sized enterprises (SMEs). The rising cost of raw materials and the intricate nature of production processes could limit market entry and slow down sector-wide growth.

USD 1.41 Billion	USD 1.81 Billion	2.8%
Market Size in 2025	Anticipated Market Size by 2034	Projected CAGR between 2025 and 2034

(Source: https://www. aminsiahts. com/industrv-analysis/ fluoroclastomcrs-market)

Downstream Industries Served by GFL

-> Automotive

Chemical Refineries

-> Refineries

-> Semiconductors

-> Aviation

Food and Pharma

Perfluoroloxy Alkanes (PFA)

The Perfluoroalkoxy Alkane (PFA) market is on track for significant growth, driven by its expanding use in the semiconductor, automotive, and aerospace industries. PFA stands out for its excellent resistance to heat, chemicals, and corrosion, which makes it an ideal choice for high- performance applications that demand both durability and reliability. Ongoing research and innovation are broadening the materials potential, enhancing its quality and discovering new areas where it can be applied. As industries continue to explore its diverse capabilities, demand for PFA is steadily increasing.

A significant shift within the industry is the adoption of environmentally sustainable production technologies, prompted by stricter regulations on perfluorinated compounds (PFCs). Manufacturers are embracing cleaner and more eco-friendly practices to align with these regulations. At the same time, the growing demand for smaller, more adaptable electronic devices has accelerated the use of PFA films and coatings, prized for their flexibility and resistance to heat. With continuous technological advancements and expanding applications, the PFA market is set for steady and sustained growth.

USD 1.56 Billion	USD 3.17 Billion	8.20%
Market Size in 2025	Forecasted Market Size by 2034	Expected CAGR between 2025 and 2034

(Source: https://www.marketresearchfuture.com/reports/ perfluoroalkoxy-alkane-market-25861)

Downstream Industries Served by GFL

• Semiconductors

• Aerospace

• Chemical Processing

• Corrosion Resistant Fluid Transfer

• Wire and Cables

• Telecom

Fluorochemicals Industry

Fluorochemicals continue to gain traction globally, driven by their essential applications in sectors such as refrigeration, aluminium refining, and high-performance industrial processes. Their unique resistance to extreme physical and chemical conditions makes them foundational to modem manufacturing ecosystems.

The rise in demand is primarily driven by the need for refrigerants in industries such as food preservation, commercial refrigeration, and automotive. The market is also benefitting from increased demand for HVAC systems, the rapid pace of consumer goods innovations, and the expansion of the construction sector. Additionally, recent innovations in waterproof garment technologies are introducing fresh avenues for industry development.

Asia-Pacific is quickly becoming a hotspot for growth, driven by rapid industrialisation and infrastructure development. In India, the market is being shaped by a booming construction industry, more widespread use of PIVAC systems, and a growing automotive sector. Government initiatives encouraging foreign investment in metals and construction are helping drive this momentum. As industries keep evolving and new uses for materials emerge, the fluorochemicals market is set to grow, thanks to technological advancements and an increasing global demand for high-performance materials.

USD 30.832 Billion	USD 26.620 Billion	3.06%
Market Size in 2025	Anticipated Market Size by 2030	Expected CAGR between 2025 and 2030

(Source: https://www. globenewswire. com/news-relea se/2025/01 /10/3007819/28124/en/2024-Research- Fluorochemicals-Market-Proiected-to-Reach-US-30-832- R:ll:on-by-2D3D-Rapid-Growth-Projected-as-lndustry- Apphcations-Fxpand.html)

KEY FLUOROCHEMICALS Hydrogen Fluoride

Hydrogen fluoride (HF), a colourless yet highly corrosive substance, exists as a gas or liquid depending on environmental conditions. When combined with water, it forms hydrofluoric acid, a powerful agent capable of dissolving materials as resilient as glass. Owing to its aggressive reactivity, HF requires meticulous handling. Despite its hazardous nature, hydrogen fluoride plays an indispensable role in modern industry. It is primarily used in the synthesis of fluorocarbons and fluoropolymers, which are essential to applications ranging from refrigeration and air conditioning to non-stick cookware. Moreover, its precision etching properties have made it a cornerstone material in semiconductor manufacturing, a sector that continues to expand rapidly alongside technological innovation.

Hydrogen fluoride continues to gain prominence as industries seek materials that offer both performance and adaptability. It is particularly vital in alkylation processes used in refining high-octane fuel, an application seeing steady growth due to global energy needs. The electronics sector relies on HF for its precision in manufacturing components, while pharmaceutical companies leverage it to create complex fluorinated compounds, essential to a wide array of therapeutic drugs. Together, these factors underscore HFs expanding role across future-focussed industries and its growing strategic importance in global markets especially for solar power as well as semi-fabs.

USD 2.88 Billion	USD 4.31 Billion	5.1%
Market Size in 2023	Anticipated Market Size by 2031	Forecasted CAGR between 2024 and 2031

(Source: https://www.vcrifiedmarketresearch.com/product/ hydrogcn-fluoride-markct/)

Downstream Industries Served by GFL

-> Agrochemical, Majorly Insecticides, Herbicides and Fungicides

-> Plant Growth Regulators -> Pharmaceutical Intermediates

Tetrafluoroethylene (TFE)

The Tetrafluoroethylene (TFE) market underpins numerous technological advancements, serving as a key raw material in the formulation of polytetrafluoroethylene (PTFE) and other specialised fluoropolymers. TFEs gaseous form, combined with its impressive thermal endurance and chemical inertness, allows it to meet the rigorous demands of industries such as electronics, automotive, and chemical processing.

In response to a shifting global focus on resilience and sustainability, there is a growing call for materials capable of meeting elevated performance benchmarks. TFE, recognised for its essential contribution to the fluoropolymer ecosystem, fulfils this demand through its robustness and adaptability. From advanced automotive components to precision electronics, TFE-based materials are enabling industries to innovate with confidence. This steady demand reinforces the growth prospects of the global TFE market, especially as efficiency and environmental compatibility become non-negotiable.

USD 3.75 Billion	USD 5.80 Billion	5.2%
Market Size in 2024	Expected Market Size by 2033	Projected CAGR between 2026 and 2033

(Source: https://www. verifiedmarketreports. com /product/ tetrafluorocthvlene-tfe-market/)

Downstream Industries Served by GFL

-> Pharmaceutical Intermediates -> Agrochemical Pesticides and Intermediaries

Potassium Fluoride (KF)

The global potassium fluoride solutions market is experiencing strong growth, driven by increasing demand across several industries. A major factor fueling this growth is the rising use of potassium fluoride in electronics, particularly in the production of semiconductors and flat-panel displays. As technologies like 5G and artificial intelligence continue to expand, the demand for electronics grows, boosting the potassium fluoride market. In addition,

the healthcare sector is contributing significantly to market expansion, with potassium fluoride being used in dental care, medical imaging, and pharmaceuticals. The glass industrys ncreasing use of potassium fluoride in the manufacturing of specialty glasses, such as low-emissivity glass and optica fibers, is also expected to drive market demand.

Emerging trends indicate that potassium fluoride is finding applications in new sectors like automotive and aerospace, capitalising on its unique properties such as high therma stability and chemical resistance. These industries aredriving nnovation and expanding the market further. Additionally, the growing focus on sustainable manufacturing practices and the adoption of environmentally friendly alternatives are contributing to the positive growth trajectory of the potassium fluoride market.

USD 0.32 Billion	USD 0.42 Billion	2.87%
Market Size in 2025	Anticipated Market Size by 2034	Projected CAGR between 2025 and 2034

(Source: https://www. promarketreports. com/reports/ potassium-fluoride-solutions-4 7202#summarv. https:// www.marketresearchfuture.com/reports/potassium- fluoride-market-22253#:~:text=The%20Potassium%20 Fluoride%20Market%20Si7e.period%20(2025%20%2D%20

2034).

Downstream Industries Served by GFL

-> Pharmaceutical Intermediates

Agrochemical Pesticides and Intermediaries

Refrigerants

Refrigerants are specialised chemical blends used in refrigeration and heat pump systems, where they undergo phase transitions typically from liquid to gas to transfer heat effectively. These compounds are prized for their high latent heat of vaporisation, chemical stability, non-corrosive nature, and favourable density characteristics. Common refrigerant types include hydrofluorocarbons (HFCs), hydrochlorofluorocarbons (HCFCs), hydrofluoroolefins (HFOs), and select inorganic substances. Their primary applications span across building air conditioning, and essential processes in the chemical, pharmaceutical, and food industries.

The growth of the refrigerant market is being fuelled by increasing demand across several end-use sectors, most significantly the automotive industry. Contributing further to this upward trajectory are rapid urbanisation in emerging economies, the proliferation of cold storage infrastructure, and a growing preference for environmentally sustainable refrigerants. Collectively these dynamics are expected to sustain market momentum over the forecast horizon.

USD 6.99 Billion	USD 9.56 Billion	6.5%
Market Size in 2024	Anticipated Market Size by 2029	Expected CAGR between 2024-2029

(Source: https://www. fortunebusinessinsiahts. com/ industry-reports/rcfrigcrant-markct-101 745)

Downstream Industry Served by GFL

-> Air Conditioners

BULK CHEMICALS INDUSTRY REVIEW

Bulk chemicals are large-scale industrial inputs vital to the fabrication of a wide array of goods, including pharmaceuticals, plastics, textiles, and construction products. Divided into organic and inorganic types, these chemicals are valued for their unique properties that align with diverse industrial uses, making them indispensable in global supply chains.

Renowned for their consistent quality, high purity, and precise formulations, bulk chemicals serve as the foundation of efficient industrial production. Their widespread availability and adaptability make them essential to sectors ranging from automotive and electronics to packaging. Used in everything from coatings and adhesives to tailored chemical blends, these materials are engineered to integrate smoothly into automated handling and logistics systems. Innovations in processing and distribution continue to elevate their role, offering improved reliability and performance in large-scale industrial applications.

USD 619.48	USD 802.30	3.4%
Billion	Billion
Market Size in 2024	Expected Market Size by 2032	Projected CAGR between 2025-2032

(Source: https://www. consegicbusinessintelligence. com/ bulk-chemical-market)

KEY BULK CHEMICALS Caustic Soda

Sodium hydroxide (NaOH), commonly referred to as caustic soda, is a highly reactive and vital chemical used across a broad spectrum of industries, it is central to the production of items such as paper, textiles, detergents, and chemicals, and also plays an important role in water treatment processes. Additionally, caustic soda is indispensable in the manufacturing of chlorine, plastics, and pharmaceuticals. Its strong alkaline properties make it highly effective in neutralising acids and decomposing organic substances, which explains its widespread use in industrial cleaning applications. Given its corrosive nature, careful handling is essential to prevent any potential harm or damage.

Downstream Industry Served by GFL

-> Textiles

-> Soaps and Detergents -> Alumina Chloroform

Chloroform, also known as trichloromethane, is a colourless liquid widely used in the production of refrigerants, medicines, and industrial solvents, it serves as a precursor for the manufacturing of fluorocarbon gases which are essential for refrigeration and air conditioning systems, as well as various chemicals and agrochemicals. The demand for chloroform is primarily driven by the chemical, pharmaceutical, and agricultural sectors, with refrigerant production playing a pivotal role in its consumption. However, growing concerns over its environmental and health effects, particularly its contribution to ozone depletion and its carcinogenic properties have prompted more stringent regulations and a search for safer alternatives. The future of chloroform will largely depend on the adoption of cleaner, more sustainable chemical processes and viable substitutes.

Downstream Industry Served by GFL

Feedstock for Refrigerant Gas -> Solvent Pharma

Methylene Dichloride (MDA)

Methylene Dichloride (MDC), also known as Dichloromethane (DCM), is a transparent, volatile liquid with a mild, sweet scent. It is a widely used solvent in industries, particularly for tasks such as paint removal, degreasing, and the manufacture of adhesives and pharmaceuticals, its exceptional solvency properties make it crucial in processes ike chemical manufacturing, metal cleaning, and food extraction, including caffeine removal in decaffeinated coffee. Despite its usefulness, growing concerns about its toxicity and environmental consequences have prompted tighter regulations and a transition towards safer, more sustainable alternatives in various industrial applications.

Downstream Industry Served by GFL

-> Pharma Active and Pharmaceutical Ingredients -> Foam Manufacturing -> Agri-chem and Pharma Formulation.

Carbon Tetrachloride

The carbon tetrachloride market is experiencing consistent growth, primarily driven by its versatile applications across a broad range of industries. Renowned for its sweet fragrance and excellent chemical stability, carbon tetrachloride plays an integral role in chemical synthesis. It is widely used in fire extinguishers, solvents, cleaning agents, paints, fertilisers, and pesticides, among other applications.

This market expansion is primarily driven by the increasing demand from the chemicals industry especially in the manufacture of agrochemicals and cleaning products. In addition, the rising focus on agricultural productivity and the growing trend towards organic farming are intensifying the need for insecticides and fertilisers, further bolstering the growth trajectory of the market.

(Source: https://www.industrvarc.com/Report/15676/ carbon-tctrachlondc-markct.html)

Downstream Industry Served by GFL

-> Pesticides -> Agricultural Chemicals -> Plastics Resins

Battery Chemicals Industry Review

The worldwide battery market is changing due to rising demand and reducing prices. Annual battery consumption exceeded 1 terawatt-hour (TWh) in 2024 as electric car sales rose 25% to 17 Million. The cost of electric car battery packs went below USD 100 per kilowatt-hour, a key criterion for cost parity with traditional vehicles. Battery mineral costs, particularly lithium, have dropped by almost 85% since 2022, driving this price decline. Plowever, quick battery technological breakthroughs and large-scale manufacturing investments have also been important. Global battery production capacity reached 3 TWh in 2024, with predictions predicting a threefold increase over the next five years assuming all projects succeed. One once-fragmented and regional market has become a seamless global ecosystem as the sector evolves. Standardisation is replacing technological diversity, and future competitiveness will depend on economies of scale, strategic supply chain relationships, and rapid invention commercialisation.

This trend is projected to encourage consolidation in the sector, even as governments strive for geographic diversification of battery supply chains, changing the industry for years.

(Source: https://www.iea.org/commentaries/the-battery- industry-has-cntcrcd-a-ncw-phasc)

USD 125.35	USD 680.85	16.6%
Billion	Billion
Market Size in 2023	Anticipated Market Size by 2034	Projected CAGR between 2024- 2034

(Source: https://www. globenewswire. com/news- release/2074/Q8/78/793716S/Q/en/Rattery-Market-Si7e- Expcctcd-to-Re.ach-USD-68Q-8S-Bn-by-7.034 html)

Cross-section of a Lithium-ion Battery

Value Chain of Components

KEY DOWNSTREAM SECTORS Electric Vehicles Industry

Unprecedented growth in the electric vehicle (EV) market is being spurred by advancements in battery technology supportive government legislation, and a global drive towards sustainable mobility. The adoption of electric powertrains is outpacing the transition from internal combustion engines, with increasing consumer demand and expanding charging infrastructure. As battery production costs decline and both energy density and charging speeds mprove, EVs are becoming more widespread. Additionally regulations promoting zero-emission vehicles, along with financial incentives such as tax breaks and subsidies, are significantly boosting market growth.

Both publicand private investments in charging infrastructure and battery supply chains are on the rise, providing a strong foundation for the future of electric vehicles (EVs). Innovations in batteries, battery recycling, and rapidly evolving technologies are poised to significantly enhance efficiency and sustainability in the sector. Additionally, the integration of renewable energy sources with EV charging stations is further strengthening the industrys efforts to reduce its carbon footprint. Despite challenges related to raw material sourcing and supply chain complexities, EVs are set to experience long-term growth, reshaping the future of clean transportation worldwide.

17.1 Million	25%	20%
Electric Vehicles Sold Globally	Global Growth in Electric Vehicles Sales in 2024	Growth in Electric Car Sales in India in 2024

(Source: https://economictimes. indiatimes. com/mdustry/ renewables/electric-car-sales-in-india-iump-20-in-2024- tata-motors-retains-top-spot/articleshow/17 7045559. cms Rs.from=mdr. https://www.virta.global/global-electric- vehicle-market)

GFLs Response

Gujarat Fluorochemicals Limited (GFL) is focused on expanding its manufacturing capabilitiesto meetthegrowing demand in the electric vehicle (EV) and energy storage systems (ESS) sectors. To support this, GFLs subsidiary, GFCL EV Products Limited, has been ramping up production capacity for critical materials used in lithium and sodium- ion batteries. The Companys expansion plans include leveraging its backward integration into the production of key raw materials such as anhydrous hydrogen fluoride (AHF) and lithium fluoride (LiF), which strengthens its supply chain and ensures a steady supply of high-quality materials. This ntegrated approach enhances manufacturing efficiency and helps reduce dependency on external suppliers, ultimately enabling more competitive pricing and faster delivery times in response to the rapidly growing global demand for ithium-ion batteries, particularly in the EV sector, GFCL EV is ncreasing its production capacity. This expansion will allow the Company to meet the projected surge in lithium battery demand, which is expected to grow significantly in the coming years. With strategic investments and expansions, GFL is poised to solidify its position as a key player in the global EV and ESS markets, aligning with the global shift towards cleaner energy and sustainable transportation solutions.

Products Catering to the EV Segment

PVDF Electrode Binders	PTFE Electrode Binders	LIPF6 Salt	LIFSI Salt
Additives VC, and FEC, among Others	Electrolyte Formulations	Cathode Active Materials (CAM) LFP for LFP Battery & ESS

Solar Panels Industry

In 2024, global solar energy capacity reached a record- breaking 585 GW, marking a 14% year-on-year increase. China was the largest contributor, accounting for almost 374 GW, or 64% of the total global growth. This increase in solar capacity reflects the broader global trend of transitioning to renewable energy. Flowever, challenges persist, particularly concerning forced labour practices in Chinas Xinjiang region, a major supplier of polysilicon for solar panels. Geopolitical tensions, shifting regulations, and the complexity of global supply chains may slow the sectors progress, with some forecasts estimating a more conservative increase of 493 GW by 2025.

While there are still challenges to address, solar energy plays a crucial role in reaching global climate targets. The key to growth in this sector lies in continued innovation and investment. As the worlds need for clean energy solutions grows, the solar panel industry is positioned to contribute significantly to a more sustainable energy future. The path forward will require collaboration across industries and nations, as well as the continued advancement of solar technology to help it overcome current challenges.

(Source: https://carboncredits.com/global-solar- growth-to-stabilize-at-493-gw-in-P0P5-predicts-wood- mackenzie/)

GFLs Response

Gujarat Fluorochemicals Limited (GFL) has successfully commissioned its Polyvinylidene Fluoride (PVDF) film plant, which is designed to manufacture essential back- sheets for solar panels. The facility is currently undergoing the validation process, with commercial production set to begin shortly. This project aligns with GFLs strategic focus on the solar energy sector, where it seeks to establish itself as a prominent supplier of high-quality PVDF films, known for their exceptional durability and efficiency in solar applications. GFLs substantial investments in this plant underscore its commitment to meeting the rising demand in the solar panel industry.

Products Catering the Solar Panel Segment

PVDF Solar Film

Hydrogen Fuel Cells and Electrolysers Industry

The hydrogen fuel cells and electrolysers sector has experienced notable progress in 2024-25, propelled by technological improvements, considerable investments, and a worldwide transition towards sustainable energy alternatives. The global electrolyser market, estimated at over USD 8.9 Billion in 2024, is anticipated to expand at a compound annual growth rate (CAGR) of 44.2% from 2025 to 2034, driven by rising demand for green hydrogen and governmental policies promoting renewable energy utilisation. The hydrogen electrolyser market is projected to attain USD 40.12 Billion by 2032, exhibiting a CAGR of 56.4%, propelled by the emphasis on decarbonisation and sustainable energy transitions. The fuel cell market, valued at USD 12.91 Billion in 2024, is projected to expand at a CAGR of 18.89%, reaching USD 51.53 Billion by 2032, driven by increasing usage in transportation, stationary, and portable applications.

The remarkable growth forecasts highlight the revolutionary capacity of hydrogen fuel cells and electrolysers in the worldwide shift to sustainable energy. Technological breakthroughs are reducing prices and enhancing efficiency, positioning the hydrogen industry as pivotal in meeting climate objectives and transforming global industries. With ongoing investment and favorable policy frameworks, the hydrogen economy is poised to establish itself as a cornerstone of sustainable energy systems, presenting significant prospects for innovation, job development, and environmental impact mitigation in the future.

GFLs Response

In alignment with its strategic commitment to sustainability, the Company has been expanding its presence in the renewable energy domain, exemplified by the launch of GFCL

Solar and Green Hydrogen Products Limited in December 2021. This entity is dedicated to the integrated development of solar energy systems and green hydrogen production, formi ng a crucial component of the Companys clean energy roadmap.

In tandem with GFLs sustainability efforts, its parent organisation, 1NOXGFL, has announced an investment programme amounting to Rs. 20,000 Crores, spanning multiple sectors, including green hydrogen. This strategic approach reaffirms the Groups unwavering dedication to fostering renewable energy proliferation and strategically aligns it to seize emergent opportunities in the green hydrogen value chain.

Products Catering the Hydrogen Fuel Cells/Electrolysers Segment

Fluoropolymers (FKM, PTFE, and FEP)

Proton Exchange Membranes (PEM) for Fuel Cells and Electrolysers

Charging Accessories

Company Overview

A key entity within the INOXGFL Group, Gujarat Fluorochemicals Limited (also referred to as GFL, GFCL or The Company), is a leading global manufacturer of fluorine- based products. Established in 1987 and headquartered in Noida, Uttar Pradesh, GFL operates advanced manufacturing facilities in Gujarat, complemented by a fully owned captive fluorspar mine in Morocco to ensure consistent raw material availability. The Companys diverse offerings encompass fluoropolymers such as PTFE, PVDF, and FKM, in addition to fluoro-specialty chemicals, refrigerants, and industrial chemicals. These products serve a wide array of ndustries, including pharmaceuticals, agrochemicals, and automotive. Emphasising environmental responsibility, GFL holds multiple internationally recognised certifications and is actively engaged in reducing greenhouse gas emissions, a commitment acknowledged by the Carbon Disclosure Project (CDP).

Driven by a philosophy of continuous innovation and strategic diversification, GFL has entered into emerging sectors such as renewable energy and electric vehicle (EV) battery solutions through its network of subsidiaries. In doing so, the Company positions itself as a key participant in the global shift towards sustainable energy. The Companys enduring commitment to excellence is manifest in its advanced research divisions and state-of- the-art manufacturing facilities, which support the delivery of next-generation fluorochemical solutions to international markets. With operational bases spanning Europe and U.S., and a strong presence in India, GFLs global footprint continues to expand. Additionally, steered by the goal to be the foremost provider of fluoropolymers and refrigerants globally, GFL remains committed to innovation, operational precision, and environmentally conscious advancement.

Enhancing Capabilities across Segments Fluoropolymers

GFCL enhanced its market position in the high-performance fluoropolymer category by astutely responding to the market gap left by a departing legacy player. The Company has developed and received industry gualifications for an array of value-added fluoropolymers catering to critical industries such as automotive, semiconductors, and electric vehicles (EVs). These efforts are expected to unlock higher-margin opportunities as GFCL scales up production and drives greater capacity utilisation, targeted for completion by the end of 2025-26.

The impending departure of a key international competitor by late 2024 has enabled GFCL to expedite the gualification of diverse grades poised for commercial launch. In the ethanol blending vertical, GFL has made material headway, with multiple grades currently in the approval pipeline and awaiting OEM endorsements. The Companys commercial discussions are unfolding as envisaged, gradually establishing a firm foothold for GFL in what is shaping up to be a strategically important market.

Fluorochemicals

After a period of adjustment, the Company has resumed its capital expenditure initiatives for R-32 refrigerant production, encouraged by a more favourable pricing environment and a promising long-term market outlook. With highest guota availability among Indian producers and adeguate time for capacity expansion, GFL remains optimistic about the enduring potential of R-32, especially as prices show strength and are unlikely to dip back to historical lows.

A planned capacity expansion of 30,000 MT will unfold in phases through a combined Rs. 1.5 Billion investment. The groundwork for this phase has been completed, and commissioning is projected in phases by the close of 2025-26. Further phases will be underpinned by additional investments. The fluorochemicals segment, backed by strong demand visibility, is well-positioned for robust growth. In the specialty chemicals segment, GFL anticipates a recovery in volumes and improved performance, supported by stable demand trends and operational efficiencies.

Bulk Chemicals

The bulk chemicals segment displayed strong operational efficiency, consistently operating at high-capacity levels during the year. With enhanced realisations for caustic soda, GFL concentrated on maximising production to deliver improved returns.

While pricing for methylene dichloride (MDC) remains relatively weak in the short term, the Company is effectively leveraging its internal integration capabilities. Upon completion of the R-32 expansion, GFL intends to utilise about 50% of its MDC production for in-house consumption, with the remainder allocated for merchant sales. This strategic approach enhances the Companys margin stability while maintaining flexibility in the market.

Battery Chemicals (GFCL EV)

GFCL EV, the battery chemicals arm of GFL, stands on the threshold of becoming a pivotal axis of the Companys long-term expansion. The worldwide momentum towards electrification-especially across electric mobility and energy storage-is catalysing sustained interest and investment. The U.S. market is experiencing a significant inflection point, marked by a surge in EV adoption, while Europe pursues its vision of establishing a robust battery manufacturing ecosystem. Concurrently, Indias announcement of more than 300 GWh in projected capacity serves as a testament to the expansive potential across both energy storage and electric transport sectors.

Leveraging its early-mover advantage, GFL has secured vital client endorsements, enhancing its market positioning with a distinct strategic edge. The Company continues to steadfastly pursue its planned capital outlay of Rs. 6,000 Crores through 2027-28. Once operating at full capacity, the business is poised to yield an asset turnover ratio of 2:1, complemented by resilient EBITDA margins of approximately 25%.

The segment will initiate operations with the production of battery-grade salts, while parallel efforts are advancing in the development of electrolytes and binders. GFLs Lithium Iron Phosphate (LFP) project is nearing mechanical completion and remains on track for commissioning by the close of FY 2024-25. In tandem, the fluoropolymers division stands to gain meaningfully from the accelerating adoption of high- performance materials in electric vehicle (EV) and energy storage system (ESS) technologies.

Product Range

Drawing on over three decades of industry experience, GFL has developed a comprehensive portfolio focused on fluorine chemistry. Its deep understanding of the market, alongside continuous investments in capacity expansion and technological advancements, has firmly positioned the Company as a leader in the field. Driven by a commitment to excellence, GFL delivers meticulously crafted products to markets around the world, consistently upholding the highest guality standards.

Building on its core expertise, GFL is proactively venturing into high-growth sectors such as electric vehicle batteries, solar energy, and green hydrogen, fuel cell technologies, offering innovative products that cater to these emerging markets. The Companys operations are strategically organised into four key verticals:

• Fluoropolymers

• Fluorochemicals

• Bulk Chemicals

• New-age Industries (Including Battery Chemicals, Solar Energy, Semiconductor Materials, Green Flydrogen, and Energy Storage Systems)

Cutting-Edge Manufacturing Units

With modem, high-tech manufacturing plants located in Ranjitnagar, Dahej, and Jolva, GFL is committed to optimising production efficiency and product specialisation. Ranjitnagar is focussed on specialty chemicals and refrigerants, while the Dahej and Jolva facilities specialise in fluoropolymers, specialty chemicals, bulk chemicals, and next-generation chemical solutions. With seamless vertical ntegration at all its sites, GFL stands as a dependable leader in the fluoropolymer industry. To keep pace with growing product demand, the Company plans to further expand its presence by establishing one or two additional plants within India.

GFLs global footprint extends well beyond India, strategically enhancing its supply chain and adding value for customers worldwide. The Companys Moroccan facility is a key player in the fluorspar mining sector, handling both the extraction and beneficiation of this vital raw material to ensure a secure and consistent supply. As part of its growth strategy, GFLs Dubai facility is set to introduce an HFC blending plant in the near future, further broadening its product offerings.

Manufacturing Locations

• Ranjitnagar, Gujarat, India

• Jolva, Gujarat, India

• Dahej, Gujarat, India

• Casablanca, Morocco Dubai, UAE

Key Financial Highlights and Ratios

Particulars	Year Ended 31st March 2025	Year Ended 31st March 2024	Variance (%)	Reason for Variance for >25%
Current Ratio (in Times)	1.62	1.37	18.25	Not applicable
Debt-Equity Ratio (in Times)	0.31	0.34	(8.82)	Not applicable
Debt-Service Coverage Ratio (in Times)	2.99	3.29	(9.12)	Not applicable
Return on Equity (RoE) (in %)	9.29	7.31	27.09	On account of increase in earnings
Inventory Turnover Ratio (in Times)	3.64	3.39	7.37	Not applicable
Trade Receivables Turnover Ratio (in Times)	3.14	2.91	7.90	Not applicable
Trade Payable Turnover Ratio (in Times)	5.46	4.69	16.42	Not applicable
Net Capital Turnover Ratio (in Times)	2.14	2.07	3.38	Not applicable
Net Profit Ratio (in %)	12.95	10.55	21.60	Not applicable
Return on Capital Employed (RoCE) (in %)	10.40	8.41	23.65	Not applicable
Return on Investment (Rol) (in %)	8.68	(12.72)	168.24	On account of profit on investment in current year as compared to loss on redemption of venture capital fund in the previous year
Interest Service Coverage Ratio (in Times)	5.78	5.84	1.03	Not applicable
Operating Profit Margin (in %)	19.00	15.79	20.33	Not applicable

New Opportunities

The global energy and technology landscape is experiencing a profound shift, propelled by rapid innovations in battery technology semiconductors, solar energy, and green hydrogen.

Battery Demand in Mobility Applications

As electric vehicles (EVs) become more widespread, the demand for lithium-ion batteries is growing at a remarkable pace. By 2030, it is projected that the need for EV batteries will hit about 3.7 terawatt-hours (TWh), marking a sevenfold increase from current figures. This growing need for batteries is a clear indicator of their vital role in the future of transportation.

Semiconductor Industry Expansion

The semiconductor industry is fundamental to innovation in a variety of fields, including automotive, industrial, and consumer electronics. In 2024, sales grew by 19.1%, and this upward trend is expected to continue into 2025. The ongoing rise of artificial intelligence (Al), automation, and high-performance computing is pushing the demand for semiconductors, solidifying their position as the key enabler of the next wave of technological advancements.

Indias Solar Photovoltaic (PV) Manufacturing Growth

Indias rapid progress in solar PV manufacturing has positioned the nation as a pivotal player in the clean energy landscape, achieving approximately 63 GW of installed capacity by December 2024. With an aim to expand this to 125 GW-and solar cell capacity to 40 GW by 2030- the country is laying the foundation for a future rooted in sustainability, technological self-sufficiency, and global climate leadership.

Green Hydrogens Role in Decarbonisation

In sectors where decarbonisation remains elusive-such as steelmaking, shipping, aviation, and heavy-duty logistics- green hydrogen is emerging as a vital enabler of cleaner operations. Its exceptional energy potential and ability to produce zero emissions position it as a promising substitute for conventional fossil fuels in these hard-to-electrify domains.

Indias National Green Hydrogen Mission

Indias National Green Hydrogen Mission aspires to establish a production capacity of at least 5 Million metric tonnes (MMT) of green hydrogen annually by 2030. The initiative is set to catalyse investments exceeding Rs. 8 Lakh Crores, create over 6 Lakh employment opportunities, and reduce greenhouse gas emissions by nearly 50 MMT each year. These ambitious targets reflect Indias determination

to lead the global green hydrogen movement, advancing both environmental stewardship and long-term energy resilience.

(Sources: https://www. semiconductors, org/global- semiconductor-sales-increase-19-1 -in-2024-double-digit- growth-proiected-in-2025/. https://www.idc.com/getdoc. isp Rs.containerld=pr AP52837624 &utm. https://timesofmdia. indiatimes.com/business/india-business/india-to-expand- solar-pv-module-capacitv-to-125-gw-bv-2030-pralhad- ioshi/articleshow/n 971 Rs.459.cms. https:// spectra.mhi. com /the-road-to-decarbonization-hydrogen-in-heavy- dutv-transport. https://www.nsws.gov.in/portal/scheme/ grccnhydrogcnpolicv)

Key Threats

The fluorochemicals industry is navigating a complex landscape shaped by tightening environmental regulations, particularly those targeting PFAS, often referred to as forever chemicals. However, based on extensive scientific studies, it is concluded that the main threat is only to a few small water soluble PFAS molecules whereas the Fluoropolymers are proven to be polymers of low concern by OECD. In parallel, supply chain fragilities—such as heavy reliance on fluorspar and geopolitical uncertainties-pose persistent risks. Rising energy costs and increasing pressure to decarbonise are further compelling manufacturers to adopt cleaner, though often more expensive, production technologies. Meanwhile, competition from emerging markets, fluctuating prices, and mounting health-related concerns have invited legal scrutiny and reshaped consumer expectations. With industries increasingly embracing green technologies, including the growth of green hydrogen, the long-term outlook for conventional fluorochemicals remains uncertaindemanding strategic realignment in response to evolving global dynamics.

Human Resources

At GFL, building an inclusive and forward-thinking workplace is a key priority. The Company supports this goal by investing in extensive training initiatives, championing diversity and equity, and actively engaging with its workforce. The Companys learning and development programmes are thoughtfully designed to strengthen technical competencies, enhance leadership capabilities, and promote continuous career advancement. From specialised skills to managerial excellence and soft skills, employees are equipped with the resources to excel and evolve.

Guided by the principles of fairness and respect, GFL is committed to nurturing a workplace defined by diversity, inclusion, and equal opportunity. The Companys practices emphasise equitable recruitment, advancement without bias, and a culture where varied perspectives are welcomed and valued. The Companys policies supporting gender eguity, dignified conduct, and inclusive leadership reflect a broader commitment to cultivating a workforce aligned with both ethical standards and progressive business values.

GFL places strong emphasis on fostering a workplace culture where employees feel connected, motivated, and heard. The Company implements numerous engagement initiatives—such as team cohesion programmes, leadership roundtables, and reward schemes-to acknowledge exceptional performance and strengthen interpersonal bonds. Through transparent communication and structured feedback mechanisms, GFL ensures every employee feels respected and supported. As of 31^st March 2025, the Company proudly employed 3,405 individuals.

Risk Management and Internal Audits

GFL takes pride in its team of highly competent professionals, whose commitment to proactive risk management ensures that potential threats to the business are identified and addressed in a timely manner. The Companys Enterprise Risk Management (ERM) system provides a structured and consistent framework for mitigation efforts across all functions, enabling seamless collaborations among crossfunctional teams to navigate emerging challenges.

The Board of Directors, made up of accomplished senior members, is integral to evaluating strategic and macro risks, reinforcing the strength of GFLs ERM framework. The Internal Audit Department, with in-house experts in finance, analytics, and chemical engineering, ensures rigorous compliance and risk vigilance. Partnering with top internal audit and assurance firms, the team drives efficiency, uncovers improvement opportunities, and embeds global best practices to support long-term, sustainable growth. For more information on the Risk Management framework, see Page No. 49.

Cautionary Statement

This document contains statements about expected future events and the financial and operating results of Gujarat Fluorochemicals Limited, which are forward-looking. By their nature, forward-looking statements reguire the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions, and other forward- looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward- looking statements, as a number of factors could cause assumptions, actual future results, and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and gualified in its entirety by the assumptions, gualifications, and risk factors referred to in the Management Discussion and Analysis Report of Gujarat Fluorochemicals Limiteds Integrated Annual Report, 2024-25.