From 1.5 Billion In FY22 To Over 12 Billion In FY25Q4: What Powered INOXGFL's Exuberant Growth

Summary

In this insightful discussion, Dvanch of Inox GFL Group shares the company’s journey from a strong chemical foundation to becoming a renewable energy and EV powerhouse. Highlighting ambitious growth across Inox Wind, Inox Green, Inox Solar, and GFCL EV, he emphasizes integrated solutions, hybrid RTC/FDR projects, and strategic acquisitions. The conversation reveals a calculated entrepreneurial mindset shaped by past challenges, focusing on aggressive yet prudent risk-taking. With a net cash philosophy, lean operations, and independent entity growth, Inox GFL is poised to scale rapidly while exploring new opportunities, combining financial discipline with a visionary approach to energy transition and sustainable expansion.

Takeaways

• 🌱 Inox GFL Group operates across multiple verticals: chemicals (GFL), EV battery chemicals (GFCL EV), wind energy (Inox Wind), solar (Inox Solar), renewable services (Inox Green), and end-to-end solutions (Inox Clean).
• ⚡ The renewable energy segment is rapidly growing, with wind and solar markets projected at 8–10 GW and 30–40 GW respectively in the next 1–2 years in India.
• 🔋 GFCL EV is setting up the world’s largest battery chemical complex outside China, representing one of the fastest-growing verticals in the group.
• 🌍 Inox Wind is targeting 1.2 GW by FI25 and 2 GW by FI27, with potential for even higher market share due to India’s growing renewable energy demand.
• 🤝 Inox Clean is pursuing acquisitions, including IP from Sky Power (Canada), and aims to provide end-to-end hybrid renewable solutions (wind + solar + battery).
• 💰 The group maintains a net cash approach, avoids debt, and raises capital within each entity without cross-guarantees, ensuring financial resilience and operational independence.
• 📈 Rights issues, such as in Inox Wind, are primarily used to convert promoter loans to equity and strengthen the balance sheet, rather than to raise fresh capital for operations.
• 🏗️ Operational strategies include maintaining project site inventory, lean cost structures, and forward/backward integration to ensure timely execution and efficiency.
• 🧠 Entrepreneurial mindset emphasizes calculated risk-taking, leveraging sector expertise, and strategic timing to enter markets when opportunities align with policy and capacity.
• 🚀 The group is positioned for both organic growth and inorganic expansion, with each entity focused on maximizing market potential while maintaining transparency and shareholder fairness.
• 📊 Inox GFL Group’s market cap grew from under ₹6,000 Cr to over ₹1,00,000 Cr in 2.5 years, reflecting successful execution across multiple verticals and resilient business strategies.
• 🔄 Cash generated in mature businesses like GFL and Inox Wind will be deployed strategically: growth reinvestment in emerging verticals (EV, Clean) and potential dividends when surplus accumulates.

Q & A

What are the primary business verticals of the Inox GFL Group?

The Inox GFL Group operates mainly in chemicals (GFL), renewables (Inox Wind, Inox Green, Inox Solar, Inox Clean), and electric vehicles (GFCL EV).

How has the renewable energy vertical grown in comparison to the chemical vertical?

Currently, the renewable energy vertical and the chemical arm are nearly on par, but in the next 5 years, renewables are expected to be 2–2.5 times larger than the chemical business.

What are Inox Wind’s capacity targets over the next few years?

Inox Wind targets 1.2 GW by FY25, 2 GW by FY27, and potentially more as the Indian wind market grows to 8–10 GW.

What is hybrid RTC-FDR, and why is it important for Inox GFL’s projects?

Hybrid RTC-FDR combines wind, solar, and battery storage to provide round-the-clock, fixed dispatch renewable energy. It ensures grid stability and firm power supply.

Why is the rights issue being conducted for Inox Wind?

The rights issue is primarily to convert promoter funding (approximately 560–600 Cr) into equity, strengthen the balance sheet, and ensure net cash status without taking fresh capital for growth.

What is the group’s approach to debt and capital allocation?

The group maintains minimal debt, prioritizes cash flow, and allows each entity to generate or raise its own capital independently, with no cross-guarantees between arms.

How does Dvanch view risk-taking as an entrepreneur?

Dvanch approaches risk through careful calibration, leveraging sector knowledge and past cycles, ensuring sufficient capital to absorb potential losses, and focusing on lean operations with high returns.

What is the strategy for solar and battery integration within the group?

Solar capacity is being expanded through module and cell plants in Gujarat and Orissa. Batteries, whose chemicals are manufactured by GFCL, are integrated with renewable projects to support hybrid RTC-FDR setups.

How does the group plan to grow inorganically?

The group is actively acquiring complementary entities across solar and renewable portfolios, such as assets from SkyPower in Canada, and intends to continue selective acquisitions to accelerate growth.

What is the expected top-line revenue for Inox Wind by FY27?

Inox Wind is projected to reach approximately ₹15,000 Crores in topline revenue by FY27, combining turnkey equipment, O&M services, and hybrid project contributions.

How does the group manage cash generated from mature businesses?

Cash from mature businesses like GFL may be reinvested into growth opportunities such as EV or used for acquisitions, while dividend policies and further expansion plans will be determined as the businesses reach saturation.

What sets Inox GFL apart in execution and operational efficiency?

The group emphasizes lean operations with minimal padding, high ROCE, cost-effective project execution, and strategic planning to handle potential operational or regulatory challenges proactively.