Embedded sustainability, innovation, and technology in our long-term strategic vision: Kartik Bharat Ram, Joint Managing Director, SRF

Our strategic objectives include developing new technologies and products to meet emerging customer needs and deliver long-term value

 SRF Limited is a chemical-based, multi-business enterprise with a diversified portfolio including chemicals, packaging films, and technical textiles, with a global presence in over 100 countries.Kartik Bharat Ram, Joint Managing Director, SRF talks about company's performance and growth plan... 

Overall performance of SRF Limited in FY24-25 and expectations in FY25-26? 

SRF Limited delivered a mixed performance in FY24–25, with revenue growing by 12 per cent to Rs. 14,693 crore and EBIT rising 6 per cent to Rs. 2,336 crore. The chemicals business faced early challenges due to weak demand and inventory issues but showed recovery in the second half, while the packaging films (renamed as Performance Films & Foil) business faced challenges due to global overcapacity, offset by a focus on value-added products and cost efficiencies. In FY25, the technical textiles business recorded a stable performance.  

Looking ahead to FY25–26, SRF is cautiously optimistic, driven by new product launches, improved capacity utilization, and a projected ~20 per cent growth in the chemicals segment. The company remains vigilant about global uncertainties but is confident in its innovation-led strategy and operational resilience.  

In October 2024, SRF approved capital expenditures totaling approximately Rs. 1,500 crore. What were the primary projects identified for this investment? 

In October 2024, SRF approved capital expenditures totalling approximately Rs. 1,500 crore. The primary projects identified for this investment include production facilities for fourth-generation refrigerants. This project aims to establish new production facilities for fourth-generation refrigerants at Dahej, Gujarat. These refrigerants have a much lower Global Warming Potential (GWP) and a reduced carbon footprint. The estimated cost for this project is Rs. 1,100 crore. 

Another significant project involves setting up a manufacturing facility for BOPP-BOPE film production, in Indore, India. This initiative allows SRF to expand its BOPP substrate production while exploring the new BOPE substrate. It also aligns with the company’s sustainability goals, as polyolefin substrates like BOPP and BOPE are known for their recyclability and environmental benefits due to their mono-family composition. The projected cost for this project is Rs. 445 crore. These projects reflect SRF's commitment to sustainability and innovation, aiming to enhance production capabilities while reducing the environmental impact. 

How does the establishment of new production facilities for fourth-generation refrigerants at Dahej, Gujarat, align with SRF's long-term strategic goals? 

The establishment of new production facilities for fourth-generation refrigerants at Dahej aligns closely with SRF’s long-term strategic goals, particularly those outlined in our Aspirations 2030. SRF's long-term strategic goals emphasize sustainability, innovation, and technological leadership. The new production facilities for fourth-generation refrigerants will have a much lower Global Warming Potential (GWP) and carbon footprint, which directly supports SRF's commitment to environmental sustainability.  

Moreover, SRF's strategic objectives include developing new technologies and products to meet emerging customer needs and deliver long-term value. The production of fourth-generation refrigerants represents a significant technological advancement in the refrigerants industry, positioning SRF as a leader in innovation and technology. Overall, the establishment of new production facilities is a strategic move that supports SRF's long-term goals, while also enhancing market position and reputation.  

What potential benefits does SRF anticipate from expanding its BOPP substrate production and exploring new BOPE substrates? 

Expanding its BOPP substrate production and exploring new BOPE substrates offers several potential benefits for SRF. This initiative aligns with SRF's sustainability goals and enhances its production capabilities. Firstly, polyolefin substrates like BOPP and BOPE are known for their recyclability and environmental benefits due to their mono-family composition. This means that these substrates can be recycled more easily, reducing the environmental impact and supporting SRF's commitment to sustainability. Secondly, expanding BOPP substrate production allows SRF to meet the growing demand for this material, which is widely used in varied packaging applications. By increasing its production capacity, SRF can better serve its customers and capture a larger market share.  

Exploring new BOPE substrates also provides SRF with an opportunity to innovate and offer new products to its customers. BOPE substrates have unique properties that make them suitable for various applications, and by venturing into this new area, SRF can diversify its product portfolio and stay ahead of market trends. Overall, these initiatives are expected to enhance SRF's production capabilities, support its sustainability goals, and provide new opportunities for growth and innovation. 

How did SRF navigate economic or industry-specific challenges in 2024 to maintain or enhance its revenue streams? 

In 2024, SRF faced macro-economic and industry-specific challenges but managed to navigate them effectively to maintain and enhance its revenue streams. The company operates across different business segments, including fluorochemicals, specialty chemicals, performance films & foil, technical textiles, and coated and laminated fabrics. This diversification helps mitigate risks associated with any single segment and provides a more stable revenue base.  

SRF's focus on innovation and research and development (R&D) plays a crucial role in overcoming challenges. The company invests in developing new products and technologies to enhance its competitive edge and allow it to tap into new markets. SRF emphasizes operational excellence by optimizing its production processes, reducing costs, and improving efficiency. This approach helps the company maintain profitability even in the face of economic uncertainties. At SRF, operational excellence is a cornerstone of its strategic and manufacturing philosophy, deeply embedded through the principles of Total Quality Management (TQM).  

The company’s commitment to excellence is reflected in its globally certified plants, robust quality systems, and continuous improvement culture. The company has made strategic investments in expanding its manufacturing facilities and capabilities. For example, SRF’s recent foray into Cast Polypropylene (CPP) film marks a strategic expansion of its Performance Films and Foil Business (PFB), aligning with the company’s dual focus on growth and sustainability. SRF's commitment to sustainability and environmental responsibility resonates well with global customers and stakeholders. The company's efforts to reduce its environmental impact and promote sustainable practices has strengthened its reputation and market position. These strategies and actions enabled SRF to navigate the economic and industry-specific challenges of 2024 effectively, ensuring continued growth and profitability. 

With 19.8 per cent of SRF's electricity mix coming from renewable sources in 2024, what steps has the company taken to increase this percentage? 

SRF has embedded sustainability into its long-term strategic vision, particularly under its "Aspirations 2030" framework. The company is actively pursuing a multi-pronged approach to enhance its renewable energy footprint. This includes investments in solar and wind energy projects, both on-site and through power purchase agreements (PPAs), to reduce dependency on conventional energy sources. SRF is also exploring energy efficiency upgrades across its manufacturing units and integrating green building practices to lower overall energy consumption. Additionally, the company’s sustainability roadmap emphasizes decarbonization and circularity, aligning with global ESG benchmarks and India’s national renewable energy goals.