In a strategic move to align with the growing global demand for innovative cooling technologies in data centers and AI chip infrastructure, Navin Fluorine International Limited (NFIL) has approved a capital expenditure of approximately ₹120 crore (~USD 14 million) to manufacture Chemours’ Opteon™ two-phase immersion cooling fluid. The Board of Directors of the company finalized the approval during their meeting held on May 6, 2025, as disclosed to the stock exchanges under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR).

Capital Investment and Project Structure

The investment is directed towards establishing initial commercial capacity to manufacture the Opteon™ cooling fluid, a product designed specifically to address the thermal challenges posed by AI hardware and next-generation chips. As per the company's disclosure, this new capacity is expected to become operational in Q1 of FY27, i.e., between April and June 2026.

Notably, the funding arrangement for the project is strategically structured—35% will be funded by Chemours, the U.S.-based specialty chemicals giant, while the remaining 65% will be financed by Navin Fluorine using internal accruals and debt.

Strategic Rationale Behind the Project

According to Navin Fluorine, this capital project aligns with its broader strategic vision of expanding its footprint in advanced materials and specialty chemical products. These products have high growth potential and cater to the cutting-edge needs of industries, especially in the context of sustainability and next-generation computing.

The project is not just about manufacturing chemicals—it is about enabling the adoption of innovative, sustainable technologies that can revolutionize how data centers manage heat dissipation, energy use, and space optimization.

About the Opteon™ Fluid and Its Market Impact

The Opteon™ two-phase immersion cooling fluid, developed by Chemours, is positioned as a next-gen solution for cooling advanced data centers, particularly those driven by AI computing. These facilities are notorious for their immense energy consumption and cooling challenges, often relying on large volumes of water and air conditioning infrastructure to prevent overheating.

The Opteon™ fluid, however, is designed to provide:

• Ultra-low global warming potential (GWP) rating of 10, making it highly environmentally friendly.

• Power usage effectiveness (PUE) approaching 1, which translates into near-optimal energy efficiency.

• Drastic reductions in water usage, with up to 60% less space requirement and up to 90% less cooling energy consumption.

• Improved performance compared to conventional cooling systems or alternative liquid technologies.

These performance benchmarks position the product as an industry-leading solution in data center cooling, a market expected to surge as AI models grow in complexity and semiconductor technologies advance.

Chemours’ Expansion and Partnership with Navin Fluorine

The collaboration is part of Chemours' expanded Liquid Cooling Venture, a global initiative to deliver integrated thermal management solutions. Speaking on the partnership, Denise Dignam, President and CEO of Chemours, emphasized that cooling infrastructure is a critical enabler for the AI boom and not just the chips themselves.

“Innovative liquid cooling solutions, like Opteon™, can help significantly reduce data center total cost of ownership while enabling next-generation chip capability,” said Dignam. “Partnering with Navin Fluorine enables us to meet this critical market need with speed and efficiency.”

From Navin Fluorine's side, Executive Chairman Vishad Mafatlal echoed the enthusiasm, stating, “This project will help us address a key challenge in the global data center industry while strengthening our presence in the high-growth specialty chemicals segment.”

Project Timeline and Implementation

• Project Announcement: May 6, 2025

• Capital Outlay: ₹120 crore (INR); USD 14 million (approx.)

• Planned Capacity Addition Timeline: Q1 FY27 (April–June 2026)

• Funding Split:

  • 35% by Chemours

  • 65% by Navin Fluorine (internal accruals and debt)

This new manufacturing unit will not only bolster Navin Fluorine's portfolio in advanced materials but also enhance India’s position as a key manufacturing hub for sustainable cooling technologies.

About Navin Fluorine International Limited

Navin Fluorine, part of the Padmanabh Mafatlal Group, is one of India's most respected manufacturers in the fluorochemicals sector. Founded in 1967, NFIL operates state-of-the-art manufacturing facilities in Surat, Dahej, and Dewas, with a strong R&D base at the Navin Research Innovation Center (NRIC) and Manchester Organics, UK.

NFIL’s core business areas include:

• High-Performance Products (HPP)

• Specialty Chemicals

• Contract Development and Manufacturing Organization (CDMO) services

NFIL is certified under ISO 9001 (quality), ISO 14001 (environment), and OHSAS-18001 (occupational safety), with a focus on innovation, compliance, and sustainability.

About The Chemours Company

Chemours (NYSE: CC) is a global chemistry company that provides specialized solutions for sectors such as refrigeration, semiconductors, advanced electronics, coatings, and oil & gas. Its flagship brands include Opteon™, Freon™, Ti-Pure™, Teflon™, Nafion™, Viton™, and Krytox™.

The company operates in over 110 countries, with 28 manufacturing sites and more than 6,000 employees. Its ongoing investments in thermal management and cooling innovations are focused on improving energy efficiency, sustainability, and data center infrastructure resilience.

Forward-Looking Considerations

This strategic partnership carries forward-looking ambitions including:

• Accelerated adoption of environmentally friendly cooling solutions

• Deeper integration of AI-enabling infrastructure technologies

• Expansion of Chemours and Navin Fluorine's footprints in high-growth, sustainable markets

However, both companies have acknowledged that market dynamics—including geopolitical factors, supply chain volatility, and regulatory developments—may influence timelines and outcomes.

Conclusion

The partnership between Navin Fluorine and Chemours represents a pivotal moment in the evolution of cooling technologies tailored for AI and high-performance computing environments. With a ₹120 crore investment, a clear implementation roadmap, and the potential for significant environmental and operational benefits, this initiative positions both companies at the forefront of next-generation sustainable innovation.

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