Tanfac Industries Secures Seven-Year Fluorinated Chemicals Contract and Signals Expansion at Cuddalore

Tanfac Industries Limited has entered a seven-year supply contract for fluorinated chemicals with a Japanese customer. The agreement, effective from January 1, 2027, has an expected annual value of Rs 337.5 crore. Over the full term, the contract value is around Rs 2,362 crore, providing long-range visibility on cash flows for the company.

Under this long-term deal, Tanfac Industries Limited will supply 7,500 metric tonnes of fluorinated chemicals each year. The assured volumes are expected to support stable plant operations and improve earnings predictability. Management views the arrangement as strengthening both domestic and export portfolios, while reinforcing the company’s status as a reliable global supplier.

Managing Director Mr Afzal Malkani said: "This contract represents a significant step in deepening our engagement with global customers and reflects the confidence placed in our manufacturing capabilities and quality standards. The long term structure of the agreement provides revenue stability, representing 37.5% of the recently announced fluorinated chemical plant capacity and aligns with our strategy of expanding a value-added downstream fluorinated chemicals portfolio and building durable relationships with global customers."

The contract follows an earlier decision by the Board of Directors to expand downstream fluorinated chemicals capacity at Cuddalore. On January 9, 2026, the Board approved a new facility with an installed capacity of 20,000 tonnes a year. This plant, at the existing manufacturing site, is expected to be completed by November 2026 with an estimated cost of about Rs 495 crore.

At the same Board meeting on January 9, 2026, Tanfac Industries Limited directors also approved a stock split proposal. Each equity share with a face value of Rs 10 would be subdivided into two equity shares of Rs 5 each. The 1:2 subdivision remains subject to shareholder consent and other statutory and regulatory clearances before implementation.

Once the required approvals are obtained from shareholders, the company will set a record date for the 1:2 stock split. Management expects the split to improve liquidity in Tanfac Industries Limited shares and make the stock more accessible for small investors. The Board also cleared plans to raise up to Rs 500 crore through equity, including qualified institutional placement or other permitted routes, to support the fluorinated chemicals expansion.

Company profile and operations in fluorinated chemicals

Tanfac Industries Limited (BSE: 506854, ISIN: INE639B01015) operates as a joint sector enterprise. The promoters are Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation. The company runs its manufacturing operations within the SIPCOT Industrial Estate at Cuddalore, focusing on hydrofluoric acid and various downstream derivatives that feed into fluorinated chemicals value chains.

Commercial production at Tanfac Industries Limited began in March 1985, and the company now holds ISO 9001, ISO 14001, and OHSAS 18001 certifications. These standards reflect structured systems for quality, environmental management, and occupational health and safety. The business follows internationally recognised safety practices, which is important for handling hydrofluoric acid and fluorinated chemicals at industrial scale.

The recent decisions on capacity expansion, the long-term fluorinated chemicals supply agreement and the proposed stock split together outline Tanfac Industries Limited’s current growth path. The combination of confirmed volumes, planned funding and new downstream facilities points to a stronger position in fluorinated chemicals markets, while also potentially broadening the company’s equity investor base.

Parameter	Details
Annual contract value	Rs 337.5 crore
Total contract value	Around Rs 2,362 crore
Contract duration	Seven years from January 1, 2027
Annual supply volume	7,500 metric tonnes of fluorinated chemicals
New plant capacity	20,000 tonnes per annum
Estimated project cost	About Rs 495 crore
Planned funding limit	Up to Rs 500 crore via equity