SRF Share Price

SRF Ltd

Founded in 1970, SRF Limited is a chemical-based multibusiness entity engaged in the manufacturing of industrial and specialty intermediates. It is a market leader in most of its business segments in India and overseas. SRF Ltd has operations in four countries – India, Thailand, South Africa, and Hungary. SRF has commercial interests in more than ninety countries and classifies its businesses as Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB), and Other Businesses. The principal activities are manufacturing, purchasing, and selling technical textiles, chemicals, packaging films, and other polymers.

Evolution and Growth

SRF Limited was incorporated on January 9, 1970, under the name Shriram Fibres Ltd. The company began its journey with the Nylon Tyre Cord Fabric Plant at Manali, Chennai, in 1974. It later expanded its product portfolio with Fishnet Twines (1977) and Nylon Engineering Plastics (1979).

Throughout the 1980s, SRF made significant strides:

• 1983 & 1986 – Commissioned the Industrial Fabrics Plant and Coated Fabrics Project at Tiruchirapalli.

• 1986 – Launched SRF Finance Ltd.

• 1989 – Commenced commercial production of fluorochemicals at Bhiwadi.

The 1990s revolutionized SRF Limited and how, with astounding growth throughout the decade. In 1990, the company showed an aggressive approach by changing its name from Shriram Fibres Limited to SRF Limited, and along with the name, a new vision also came forward.

Over the years, SRF actively pursued growth, exploring new business areas while strengthening its foothold in the market. A crucial milestone came in 1993 when it introduced Total Quality Management (TQM) practices. This move laid a strong foundation for efficiency, consistency, and long-term operational excellence.

Things started to move quickly after 1995, as SRF began acquiring CEAT's Nylon Tyre Cord Plant in Gwalior, which added significantly to CEAT's manufacturing size. Additionally, the company began producing chloromethane at the Bhiwadi plant, which also increased the range of activities being undertaken by the company. However, SRF was not thinking only at the local level; the company was already looking to expand internationally. In 1996, the company took a major step by establishing its first international operation in Dubai. This was the company's first step towards international expansion.

Along with dealing with the streamlining of its business, SRF decided to move away from financial services. Therefore, in 1997, it offloaded SRF Finance Ltd to GE Capital while making certain that its resources remained concentrated on the core industries. This enabled the company to focus more on manufacturing and expansion across the globe.

The momentum didn’t slow down. In 2000, SRF further consolidated its presence in the global market by purchasing DuPont’s tyre cord fabric conversion unit located at Gummidipoondi, Chennai. By the end of the decade, it had become one of the world’s top ten suppliers of nylon tyre cords and digitalized business operations through the establishment of SRF EBiz, an online procurement system.

Strategic Business Moves

The early 2000s were pivotal for SRF as it executed strategy-based initiatives to enhance its market presence and broaden its portfolio. The company went for its first international acquisition in 2002 when it purchased a refrigerant manufacturing plant located in Thailand. This purchase marked SRF’s entry into the global chemicals market.

This step bolstered SRF’s presence in the fluorochemicals market and set the stage for future global expansions. In 2006, SRF established an R&D center focused on specialty chemicals and process optimization. This was well complemented by the new Indore polyester plant opened in 2004. Along with new core competencies being set, the company also wanted to enter the fast-growing packaging industry.

A significant milestone came in 2007 when the company commissioned a chemical complex at Dahej, Gujarat, a move that cemented its position in the specialty chemicals domain. The same year, SRF reinforced its international presence by acquiring an overseas plant for technical textiles in South Africa. By the end of the decade, the company had evolved from being a leading manufacturer of technical textiles to a diversified industrial player with strong global operations in chemicals, packaging, and textiles. This period of calculated expansion and strategic acquisitions laid the foundation for SRF’s next phase of growth.

Expansion into Chemicals and Packaging

• 2012 – Commissioned a chemical complex at Dahej, Gujarat.

• 2015 – Acquired Dymel HFC 134a, a regulated medical pharmaceutical propellant business from DuPont.

• 2016 – Became the first company outside the US and Europe to develop HFO 1234yf, a next-gen refrigerant gas for car air-conditioning.

• 2017 – Acquired HFC125 assets to expand its fluorochemical portfolio.

• 2018 – Invested $60 million in a BOPET film line and resin plant in Thailand.

• 2019 – Expanded global operations, increasing its wholly owned subsidiaries to six.

Recent Developments

The onset of the COVID-19 pandemic in 2020 brought unprecedented challenges to businesses worldwide, and SRF was no exception. The national lockdown imposed in India on March 25, 2020, had a significant impact on the company's business activities. However, despite these challenges, SRF demonstrated remarkable resilience and continued to expand.

In the financial year ending March 31, 2021, the company successfully raised ₹750 crore by issuing 1.76 million fully paid-up equity shares to qualified institutional buyers at ₹4,250 per share, reinforcing investor confidence. The following year, SRF announced a substantial bonus share issuance in a 4:1 ratio, further strengthening shareholder value. By March 31, 2022, SRF had expanded its subsidiary network to seven wholly owned entities, with both domestic and international subsidiaries playing a crucial role in its global operations.

In 2023, SRF continued its aggressive expansion strategy by commissioning multiple facilities, including a Multi-Purpose Production (MPP4) facility for agrochemical and pharmaceutical intermediates, a thermal oxidation unit at Dahej, and a second chloromethane (CMS) plant. The company's Fluorochemicals Business also saw the commissioning of new plants, including those for chloromethanes, calcium chloride, and a captive power plant at Dahej.

Meanwhile, the Packaging Films Business expanded with a second BOPP film line and metallizer at Indore. The Belting Fabrics segment also enhanced its production capacity, increasing its output from 1,100 to 1,800 metric tons per month. These developments underscore SRF's ability to navigate market uncertainties while continuing to strengthen its position as a leader in industrial and specialty intermediates.

Brief Overview

Over the decades, SRF Limited has established itself as a leader in technical textiles, chemicals, and packaging films, with a strong domestic and global presence. With continuous investments in research, manufacturing, and sustainability, the company remains focused on innovation and expanding its footprint in key international markets, thus positively influencing the SRF Ltd share price.