Chennai: The Chennai-based hydro fluorocarbons (HFC) company Refex Refrigerants Limited will start supplies to Tata Motors Limited''s car plant in Pune. The company will be setting up two 25-tonne storage tanks at the car manufacturer''s plant and supplies are expected to start early next year.

Refex Refrigerants is, engaged in the business of refilling imported non-ozone depleting refrigerant gases, known as hydro fluorocarbons (HFC), which are environment-friendly with zero-ozone depleting properties, unlike CFCs or chlorofluorocarbon gases, which they seek to replace. It is a joint venture with Kaltech Engineering & Refrigeration Pte. Ltd, Singapore. (See: Refex tanks up profit from HFC)

Disclosing this Anil Jain, managing director, Refex Refrigerants, says, "The tanks are being built at an outlay of Rs80 lakh. Our gas will be used in majority of the air conditioned cars rolled out of Tata Motor''s Pune plant."

Refex Refrigerants will lay pipelines from the storage tanks up to the point where the air conditioners are fitted inside the car plant.

The Tata deal is the second such deal for Refex Refrigerants. Earlier it had signed up with Hyundai Motor India Limited to build another two 25-tonne capacity storage tanks at the Korean automaker''s a second plant, which will have a capacity to roll out 3 lakh cars per year.

"We will be the sole supplier for Hyundai Motor''s second plant and the revenue potential is around Rs12.5 crore per annum," adds Jain. The car company''s first plant is serviced by SRF Limited.

The setting up of storage tanks frees the car manufacturer the bother of managing the cylinders. The car companies used to stock several cylinders stocked with the gas. Similar to the oxygen cylinders stored by hospitals.

"In addition there is reduction in human cost as a single worker is sufficient to take care of the pipeline in the place of ten to haul the cylinders. Also the factory unlocks ample space earlier occupied by cylinders," Jain elaborates. Interestingly, the idea of building a big tank to store the gas was first mooted by Refex, which is now being accepted by the car companies. All these years gas suppliers had been supplying gas in cylinders.
the storage tank idea is Refex Refrigerants idea which is now being accepted by the car companies.
In the recent times, Refex Refrigerants has been bagging orders from car manufacturers based in the south. The company has bagged orders from Hindustan Motors Limited''s Thiruvallur plant near Chennai where the latter rolls out its Lancer and Pajero models.

"We also supply to Reva Electric Car Company Private Limited and sports car maker San Motors, adds A Suresh Menon, head, marketing, Refex Refrigerants.

At Maruti Udyog Limited, the company''s samples are being evaluated while it is negotiating with Toyota Kirloskar Motor Limited at Bangalore.

Meanwhile Refex Refrigerants is progressing well with its Rs36.15-crore capacity expansion programme. The company had raised Rs24.70 crore through a premium public issue recently for the purpose with the balance raised from promoters and bank loan. It plans to put up a plant in Tamil Nadu to manufacture HFC-based refrigerant gases in India by 2008.

According to Jain, the expansion of installed capacity of cylinders from 480 tonne per annum (tpa) to 3,000 tpa will be ready by the end of this year. "The cylinder strength will be doubled to 24,000."

Refex Refrigerants offers different supply solutions for different segments. For the trade and service segments it sells HFC packed in 10kg, 25kg and 65 kg. On the anvil are cylinders weighing 100kg as well as micro packs weighing 340grams and 500grams.

"We have imported around 1.5 lakh small cylinders and based on the demand local sourcing of cans will be looked at," he remarks.

The gas company has budgeted Rs3.5 crore towards brand building. Refex Refrigerants advertises about its gas in FM stations and also sponsors environment awareness programmes.

Targeting a turnover of Rs80 crore this fiscal, the company has closed the first fiscal with a turnover of Rs19 crore and an after tax profit of Rs2.6 crore.