### **Company Overview** Tanfac Industries Limited, formerly known as Tamil Nadu Fluorine and Allied Chemicals Limited (incorporated in 1972), is a leading Indian chemical manufacturer specializing in fluorine-based chemicals. Established in 1985, the company operates a 60-acre integrated manufacturing facility at the SIPCOT Industrial Estate in Cuddalore, Tamil Nadu—strategically located approximately 180–200 km from Chennai. Tanfac is a joint-sector enterprise promoted by **Anupam Rasayan India Limited** and the **Tamil Nadu Industrial Development Corporation (TIDCO)**. Since Anupam Rasayan acquired a significant stake in May 2022, the company has undergone a strategic transformation, shifting from commodity chemicals toward **specialty and high-value fluorinated products**, enhancing technical expertise, R&D capabilities, and market diversification. --- ### **Core Business Segments & Product Portfolio** Tanfac operates in two primary revenue segments: 1. **Hydrofluoric Acid (HF) and Derivatives** (70% of revenue): - Serves refrigerant gas, surface treatment, advanced intermediates, and solar cells. - Key products: Anhydrous Hydrofluoric Acid (AHF), Dilute Hydrofluoric Acid (DHF), and fluorocarbon feedstocks. 2. **SAP and HF-Based Chemicals**: - Supplies agrochemicals, pharmaceutical intermediates, specialty gases, glass etching, and metallurgical applications. **Major Products Include:** - Anhydrous & Dilute Hydrofluoric Acid (DHF) - Aluminum Fluoride - Potassium Fluoride & Potassium Bifluoride - Boron Trifluoride Complexes - Sulfuric Acid, Oleum, Calcium Sulphate (Gypsum) - Iso Butyl Acetophenone --- ### **Strategic Expansion & Recent Milestones (2023–2025)** 1. **HF Production Capacity Doubled (2024):** - Commissioned a new 52 TPD hydrofluoric acid plant in October 2024, increasing AHF capacity from 14,850 TPA to **29,700 TPA**. - Investment: ₹100 crore (fully funded via internal accruals). - Outcome: Enhanced in-house HF supply for downstream value-added products, improved cost efficiency, and stronger vertical integration. 2. **India’s First Solar-Grade Dilute HF Facility (2025):** - Commissioned a **10,000 TPA Solar-Grade DHF (50% HF)** plant in June 2025—first of its kind in India. - Certified by a leading Indian solar wafer manufacturer, validating product purity. - **Phase II underway**, doubling capacity to **20,000 TPA** by FY26, supporting India’s renewable energy and solar manufacturing growth. 3. **Entry into Refrigerant Gases (2025):** - Signed a long-term supply agreement with a U.S.-Japan-India consortium to manufacture refrigerant gases. - **Annual revenue potential: ₹750 crore (~USD 86 million)**. - Investment: ₹370 crore (via internal accruals and equity). - Initial supply expected in **H2 FY27** from the Cuddalore facility with upgraded infrastructure. - Strategic move to diversify into high-growth, regulated specialty markets. 4. **Downstream & Specialty Chemical Growth:** - Focus on **high-value fluorine derivatives** for electronics, pharmaceuticals, renewables, and agrochemicals. - Investing in R&D for **organic synthesis, custom fluorinated molecules, and fluoropolymers**. - Planned commissioning of **new specialty inorganic fluoride plants in FY26**, using in-house technology. --- ### **R&D and Innovation** - Active R&D center with **over 10 scientists** driving innovation in both organic and inorganic fluorine chemistry. - Focus areas: - Development of new fluorinated intermediates for pharma and electronics. - Process optimization and energy efficiency (e.g., **low-cost steam-driven fluorspar dryer** installed). - Custom molecule design for niche customer needs. - Collaborating with global technology providers to access cutting-edge fluorine specialties and polymers. --- ### **Operations & Sustainability** - **Advanced Technology:** Uses licensed tech from BUSS Chemtech (Switzerland) and CHENCO (Germany) for high-purity HF production. - **Hazardous Material Expertise:** Specialized infrastructure for safe storage, handling, and logistics of hazardous chemicals—ensuring compliance, reliability, and safety. - **Sustainability Initiatives:** - Strong focus on **energy and water conservation**, **waste reduction**, and **carbon footprint management**. - Recognized as a **Responsible Care signatory**, reflecting commitment to environmental, health, safety, and ethical standards. - **Workforce & Productivity:** - Increased training hours and incentive programs have improved employee productivity and reduced attrition. - Manpower rationalized over time to enhance efficiency. --- ### **Market & Customer Reach** - **Global Footprint:** Supplies **20 international clients across 10–12 countries**. - Customer base spans pharmaceuticals, agrochemicals, solar, electronics, glass, and metallurgy sectors. - **Export Strategy:** - Facing short-term decline in export turnover (₹17.8 crore in FY24, down 4%) due to strong domestic demand. - **Future focus: Expand exports** in Asia-Pacific and new global markets, especially for specialty-grade HF and VAPs. --- ### **Raw Material & Risk Mitigation** - **Fluorspar & Potassium Carbonate:** Diversified sourcing away from China to reduce supply chain risk and dollar volatility. - **Sulfur Supply:** Secured long-term supply agreement with a refinery for molten sulfur, ensuring cost stability. - **Procurement Efficiency:** Negotiated pricing below international benchmarks for key raw materials.