Inox banks on green tech to double business to ₹18k crore in 4 years – EQ Mag Pro
Mumbai: The renewables and chemicals arms of Inox Group are set for expansion with its chairman Vivek Jain aiming to double the size of the businesses. Vivek inherited the two businesses after the group split in 2021, with the other half going to his older brother, Pavan.
Vivek is also gearing up to raise Rs 740 crore from the primary market through Inox Green Services, which will be the first entity from his portfolio to launch an initial public offering (IPO) after the separation. Vivek has three listed companies — Gujarat Fluorochemicals (GFL), Inox Wind Energy and Inox Wind — under his fold. The Gujarat Fluorochemicals stock grew 142% in the last one year, vaulting Vivek among the top 10 biggest gainers in the IIFL Hurun India Rich List 2022 with a wealth of Rs 29,200 crore.
“We aim to double our group revenues to Rs 18,000 crore in the next three to four years from Rs 9,000 crore and keep profit margins high as we step up efforts to develop value-added chemical products that are used in high-potential segments like electric vehicle battery manufacturing, hydrogen fuel cells and semiconductors,” said Vivek’s son & InoxGFL Group director Devansh Jain.
While both the brothers continue to use the Inox label for their respective businesses, Vivek has added GFL to the Inox tag to distinguish his group. The two factions don’t have a non-compete arrangement and, hence, are free to enter any business activity.
Pavan has gained the industrial gases manufacturing business Inox Air Products (unlisted) and film exhibition firm Inox Leisure (listed). Vivek owns about 3% in Inox Leisure, which is in the midst of being merged with Ajay Bijli’s PVR. The stake, however, will fall once the merger is concluded. He subsequently plans to step down from the board of Inox Leisure to spend more time on his business ventures.
Devansh said the InoxGFL Group aims to be net debt-free soon by selling non-core assets, among other moves, to strengthen its balance sheet. He added that the IPO fund-raise at Inox Green Services will also help in paring the enterprise’s consolidated debt.