With a proposed $3 billion capex plan, INOXGFL Group—a 90-year-old chemicals-to-renewables powerhouse—is making big bets on India’s transition to green energy. Devansh Jain, Executive Director, INOXGFL Group, tells INFRASTRUCTURE TODAY in this exclusive interview that, driven by geopolitical realignments, India is uniquely positioned to scale its manufacturing capabilities across electronics, solar, wind, and battery technologies. Edited excerpts.
Since its inception, the INOXGFL Group has been known for adaptability and proactive planning. What are your capex plans for the next few years?
Our capex plans are clearly defined for the next three years. Across the group, we are heavily investing in INOX Clean, while INOX Solar is receiving significant funding for cell and module manufacturing. Meanwhile, our group subsidiary, GFCL EV, is expanding in its segment. We have outlined a major capex strategy, and although standalone investments may not seem substantial, they total approximately $200 million at the group level—our largest capex exercise to date.
As a group, we are planning nearly $3 billion in capex over the next three years, constituting around 95 per cent of our total investment plans. The remaining 5 per cent, or roughly $150 million, will be allocated to other entities like INOX Wind.
You have also been working towards expanding your EPC (engineering, procurement, and construction) business…
EPC has always been integral to our operations. Wind energy is a complex space dominated by only a few players in India. Unlike solar, where multiple entities operate, the wind energy market is highly specialised, and turnkey solutions are critical. We are the largest turnkey providers, and we aim to maintain this position within India’s energy transition. Wind energy presents significant barriers to entry, not just in terms of investment, but also due to its long gestation period. We now approach the ecosystem holistically, evolving from selling wind turbines to addressing market demand for FDRE (firm and dispatchable renewable energy) and RTC (round-the-clock) power supply. To support this, we are integrating solar and BESS (battery energy storage systems). GFCL EV leads our BESS and EV business, with BESS as a forward integration strategy.
Our EPC services also reflect this growth. We noticed that cranes were major capex and opex drivers. To optimise costs,
we decided to procure our fleet. The first batch has arrived, and additional cranes will be deployed every alternate month, with
10 to 15 operational within six to eight months to meet our internal requirements.
Additionally, we have ventured into transformer manufacturing for turbines and scaled up turbine technology from 2 MW and
3 MW models to 4.5 MW. As part of this expansion, our EPC division is expected to soon be listed as INOX Renewable Solutions (formerly Resco Global Wind Services). We expect regulatory approval shortly. The three publicly listed operating entities will be INOX Wind, Gujarat Fluorochemicals, and INOX Green Energy Services, with multiple other group entities progressing toward eventual listing.
Another key focus area is O&M (operations and maintenance).Could you elaborate?
Our approach prioritises preventive maintenance. We have long deployed SCADA (supervisory control and data acquisition) across our projects. A centralised control centre at our corporate office oversees our nationwide fleet of nearly 4 GW, complemented by local control centres at major wind sites. Advances in AI-driven drone technology are improving efficiency while lowering costs. These innovations are being increasingly implemented as we expand our digital capabilities. With INOX Solar growing, our capacity will expand significantly. Our goal is to scale up to 10 GW within three years. Given this trajectory, digital integration will be critical for cost efficiency and operational excellence.
Is servicing the C&I (commercial & industrial) sub-segment still as attractive as it was a decade ago?
Many large business groups are now setting up captive power capacities. At INOX Clean, our IPP and solar manufacturing arm, we are developing significant capacity to meet our requirements. The rationale is simple: if we have the expertise to develop, build, and scale power, why source it externally? Similarly, major steel players are increasingly becoming captive IPPs (independent power producers) to capitalise on the benefits of power generation.
While the C&I segment remains a substantial opportunity, its attractiveness has evolved. Earlier, margins were higher due to fewer players and strong demand from large businesses. However, many companies now meet their energy needs internally, shrinking that particular market. Even among smaller entities requiring 10-30 MW, competition has intensified. To some extent, C&I solutions can be more viable than a SECI (Solar Energy Corp. of India) or NTPC PPA (power purchase agreement). However, risks remain, particularly with short-term deals. Instead of committing to a rigid 25-year PPA, we adopt a balanced strategy. Within our ecosystem, we have a mix of captive power, centrally bid tenders, state-level PPAs, and exchange power. Earlier, participation was profit-driven; today, sustainability and regulatory shifts play a crucial role.
What factors are driving this transformation?
Firstly, renewable energy is now the most cost-effective power source. Businesses prefer investing in renewables rather than purchasing power externally. Secondly, sustainability policies—such as the EU’s CBAM (Carbon Border Adjustment Mechanism), which takes effect next January, are shaping energy decisions. Carbon taxes are progressively being introduced, and industries, whether green steel, green chemicals, or green hydrogen for ammonia, require renewable energy. Consequently, businesses are scaling up renewables for operational power and to meet environmental targets.
Thirdly, multinational corporations are prioritising green energy to fulfil sustainability commitments. India’s domestic emissions trading scheme, already in the public domain, will likely accelerate demand from power-intensive industries. Voluntary carbon trading standards are emerging and, within two years, could become a major driver of renewable adoption. Lastly, green hydrogen is gaining traction. It replaces thermal power with wind and solar to generate hydrogen. With government policies mandating refinery transitions to green alternatives—including green ammonia, green methanol, and green hydrogen—thermal-based energy requirements are gradually shifting to renewables.
How have policy initiatives like ALMM (Approved List of Models and Manufacturers) and PLI (Production Linked Incentives) benefited the sector?
India was proactive in responding to global tariff challenges. Prime Minister Narendra Modi’s policy direction has been instrumental, particularly the PLI scheme, which provided the necessary incentive to give thrust to domestic manufacturing. While PLI has supported front-end production, we now advocate expanding its scope across the renewable supply chain. If components are imported from China and assembled in India due to domestic content requirements, the Make in India vision remains incomplete. To ensure a truly domestic ecosystem, PLI should extend across the entire supply chain.
Under ALMM for solar, modules must be manufactured in India. Initially, many firms sourced cells from China, but with the upcoming ALCM (Approved List of Cell Manufacturers) policy effective from June 2026, solar cells must be produced domestically. While wafering remains a smaller component, contributing roughly 25 per cent of the value, this policy shift will bring at least 75 per cent of solar manufacturing to India.
Some components may continue to rely on competitive global supply chains. However, India’s long-term strategy is clear: it seeks complete self-sufficiency in manufacturing, reducing dependency on neighbouring countries. PLI has already spurred front-end manufacturing growth in electronics, with multinational corporations expanding operations in India. Given the geopolitical shifts between the US and China, India is uniquely positioned to advance its manufacturing capabilities across electronics, solar, wind, and battery technologies.
How will the auction for 37 GW of offshore wind across Gujarat and Tamil Nadu impact demand for wind turbines?
Offshore wind is an ambitious move, but significant groundwork remains.
India is a developing nation prioritising cost-effective power solutions. If electricity costs Rs.3.5 per unit, states will likely hesitate unless it’s available at around Rs.3. Offshore energy costs 2.5 times more than onshore—so why would buyers opt for Rs.6-7 per unit when they can secure power at half the price?
Unlike Europe, where wind turbines are often seen as aesthetic infrastructure, or China, which mandates 25 per cent offshore investment, India’s focus is on meeting essential energy needs. Offshore projects in Tamil Nadu and Gujarat face multiple approval processes, followed by lengthy site assessments. Realistically, the first operational offshore turbine is at least five years away.
As one of India’s top three wind turbine manufacturers, INOX Wind has developed competitive products like the 3.3 MW, 2 MW DFIG (doubly-fed induction generator) turbine, and the upcoming 4.5 MW model. All are offshore-capable, positioning us to enter the market when the opportunity materialises. However, offshore wind is unlikely to scale meaningfully soon. A 50-100 MW demonstration project is not true market expansion. India’s onshore wind potential is estimated between 300 GW and 1,200 GW based on current technology, yet installed capacity is just 50 GW. Over the next 30-40 years, there is ample room for growth within onshore wind alone.
As a leading renewables player, how do you contribute to green hydrogen’s viability?
We are among the world’s top two fluoropolymer producers. In electrolysers, PEM (proton exchange membrane) accounts for nearly 40 per cent of fluoropolymer costs. This space is currently dominated by a few global players. We are developing and patenting fluoropolymer technology, with years of R&D backing our advancements. As India’s green hydrogen ecosystem matures, electrolyser costs will likely decline around 2026, making domestic solutions more competitive.
INOX Clean will eventually enter green hydrogen production. As scalability improves, we will expand into front-end operations within this sector.
Where do you currently stand in component manufacturing?
Our products are undergoing certification across categories, with large-scale commercial sales expected within a year.
How much of your budget is allocated to R&D?
We don’t follow a fixed percentage; investments are need-based. Across our group, dedicated teams work on battery storage, solar, fluoropolymers, and EV chemicals.
You have been actively working in the battery sector. Are you exploring new chemistries?
The global battery supply chain is overwhelmingly China-dominated, with about 95 per cent of production concentrated there. Under President Donald Trump’s tariff strategy, the US is effectively cutting off China from the renewables and EV ecosystem. In response, GFCL EV is setting up the world’s largest battery chemical complex outside China. We recently raised `10 billion at a $3 billion valuation through a pre-series funding round. We are building this business at an unprecedented speed and scale. It’s a global endeavour aligning with India’s Aatmanirbhar Bharat (self-reliant India) vision for BESS and EV mobility. Fluorine is the backbone of battery chemistry, and we are actively working across multiple formulations, including LiPF6, NAPF6, LFP, and LIFC. Our teams are continuously optimising efficiencies through advanced permutations, combinations, and material improvements.
What growth do you anticipate from exports in the future?
India is at a strategic inflection point in the EV revolution, well-positioned to build for the world. As global EV adoption accelerates, we aim to capture a significant share of the domestic market. Historically, GFL exports nearly 70 per cent of its production, spanning refrigerants, fluoropolymers, and now EV chemicals, through a distribution network covering 80 countries. Our export strategy, however, will depend on the scale and scope of opportunities. If the demand is primarily domestic, we will prioritise local markets.
If it presents a global play, we will actively pursue export expansion. For instance, given India’s growing power demand, establishing an IPP plant in the UAE or Canada wouldn’t be a priority.
– Manish Pant
INOXGFL Group: From Chemicals to Clean Energy
- Legacy of Over 90 Years: A pioneering Indian conglomerate with a strong foundation in chemicals and renewable energy.
- Global Leadership in Fluoropolymers: Gujarat Fluorochemicals Ltd (GFL) is India’s largest producer of fluoropolymers, serving industries worldwide.
- Diversified Business Segments: Expertise spanning fluorochemicals, battery chemicals, wind turbines, and
renewable energy. - Strong Sustainability Focus: Deeply integrated into the green ecosystem, driving innovation in clean energy solutions.
- Market Capitalisation: ~$12 Billion, a testament to its robust growth and industry leadership.
- End-to-End Wind Energy Solutions: INOX Wind Ltd is a fully integrated player providing turnkey solutions in the wind energy sector.
- Global Presence: Offices and warehouses across Europe and the US, ensuring seamless international operations.
- Backward-Integrated Operations: Vertical integration from natural minerals to high-value-added products.
- Cutting-Edge Research & Innovation: Two modern research centers in Gujarat focusing on product innovation and
application development. - Revenues: INOXGFL Group reported consolidated revenues of Rs.61.4 billion for FY2024.
Source: Company, IT Research