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SHUBINVESTS I SEBI RA

5th Aug · SEBI-Registered Analyst

The 2028 Refrigerant Race: Why India's Chemical Companies Are Expanding Before Time Runs Out

The government announces that after 1 January 2028, no new mining licenses will be issued. Suddenly, everyone starts building as fast as possible—not because demand explodes overnight, but because the window to secure future production is closing. That is exactly what's happening in India's refrigerant industry. Refrigerants are the invisible chemicals inside air conditioners, refrigerators, automobile ACs and cold-storage systems. They don't get consumed during normal use—they continuously circulate inside a sealed system. But many widely used refrigerants, especially Hydrofluorocarbons (HFCs) such as R32 and R134a, have a high global warming impact. Under India's commitment to the Kigali Amendment, HFC production will be frozen from January 2028 based on the country's average production during 2024-2026. The national production limit will then reduce gradually until 2047. That's why manufacturers are racing to commission new capacity before the deadline. The biggest uncertainty? The government has not yet announced how future production quotas will be allocated among individual companies. Building capacity today improves preparedness, but it does not automatically guarantee future production rights. • Navin Fluorine International

NAVINFLUOR
– Specialty fluorochemicals and refrigerant manufacturing expertise. • Gujarat Fluorochemicals (GFL)
GMDCLTD
– One of India's largest fluorochemical producers with expanding capacities. • SRF Ltd.
SRF
– Strong refrigerant portfolio, integrated fluorochemicals business and export opportunities. • Deepak Nitrite (Indirect) – Specialty chemical ecosystem beneficiary through downstream chemical demand. It's about who secures long-term manufacturing rights before India's production ceiling becomes a scarce and valuable asset. When supply is capped but cooling demand keeps rising, efficient and compliant manufacturers could enjoy a meaningful competitive advantage.

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