when will you enter gain? And starting from scratch, how will you approach the process?
I have a very concentrated portfolio,
GE shipping, Rain Industries and Nuvama Wealth are three major holding, more than 65% of my portfolio… Nuvama will have impact on any bumps ahead, shipping industry looks to have solid 2 years ahead … for Rain industries worst is left behind … am not finding anything apart in this bull market.
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I did a mistake last year by switching from Newgen to intellect in terms of share price increase…still holding intellect
- US fed has increased the rates 11 times in 2022-23. In my view, it does have a temp effect but it withers away soon.
- India is always in an election mode with general election every 5 years. Again it does have a temp effect and market recovers soon thereafter. Problem is if BJP doesn’t come back in power, this period will be longer. But chances of that happening is low in my view.
- Chinese economy crisis is helping our export oriented businesses, I am not sure how will this impact our market in very adverse sense.
- US Inflation is directly linked with fed rate hikes. Also, besides crude oil imports and businesses dependent on that, I am not sure how will this affect our stock market.
6 Likes
I think in general the oil reining and wars elsewhere is helping India business, our improvement in efficiency on energy,railways and infra is giving much needed boost… when China is slowing down… An most of the small businesses and consumers are now digital and more tax collection due to this…
As you said if BJP retains power then things will continue to grow… Else the treasure and forex will start to drain sooner than we expect.
2 Likes
When it comes to inflation people i keep bigger lens not just thinking that these are temporary blips
Let me tell you my thoughts
Increasing interest rates will have an increased pressure on corporate debt structure which then will have effect on the industry then it hits the economy…
Coming to India is a service oriented country and the top contributors are IT and PHARMA. These two industry have a strong base in US…
In general company who are having bad corporate debt structure will not survive long than the ones who don’t have debt… and there will be severe competition among those who wants to gain the market share with low cost production… this gives more opportunity for us at global cues to do more export and gain market share…
So I prefer to stay with domestic based companies with strong export…
Now there might a little to no correction : I don’t know but I anticipate FII will be cautious when it comes to elections, year end closure, fed hikes etc etc…
I don’t know… I withdrew funds due personal emergency as I needed for hospital….
At macro front my thoughts
When the US, UK, China market goes down due to inflationary pressure all there will be hit at the small extent to global market too…
My reasoning : commodities, demand/supply, price
Price of commodity will get hit if the market boils down
Secondly correction of demand/supply
Lastly the price relation : if the country is the low cost producer then it’s a definite runner… in such case is India where it’s standing now…
If I have to put all this things into a tiny mustard then I would say for India to grow strong in GDP the only way is to export from India and get money into India to become 5 trillion dollar economy…
Next I think the pressure will be in US banks due to high interest rate, lending… I don’t know how banks will take this hit plus they also have covid excess…
Am quite staying away from IT, Newgen is the sole reason that I exited and am also hearing from the Newgen management that they r increasing exposure to Middle East, Egypt and other Asian countries.
To top this up…
small, mid cap has run phenomenally well this year and the valuation is not attractive and also we can see sluggishness coming in…
So now these are my reasons… I don’t see anywhere positive at short time but definitely long run Bharat is in the strong position…
Open to construcitve criticism : am just a person who collects aggregates the information and makes my own view…
If I am right it’s good for me if am wrong it’s good for me… so open to any constructive criticism and open to learn much more here…
Disclaimer : this is not a recommendation any post in my thread is not a buy or sell recommendation… am just sharing my thoughts and knowledge for educational purpose
I don’t know… I see nifty has come back to 20k levels again… the US bonds are easing off…
I think market will upwards slowly… will see post the FED meeting…
Sectors
Pharma
Chemical
Defense
Electronic Manufacturing
Power
These are the sectors that didn’t perform… i would like to start
China is still dumping chemicals in India… even you still see all the Chinese products in India such as earphone, chargers, electric devices etc… now given that 80% phone is made in India : it will take time for Chinese market to be replaced by made in India product…
I don’t know the correlation between oil and infrastructure: I think you are talking about end usage of oil on various commodity elements such as cement etc used in infra, railway etc… I think this is one off, and not structural…
Structural stories that help get india to next level is telecommunication, digitisation, IOT, AI, chemical, pharma with novel synthesis, sustainability with green renewable, biotechnology, solar, wind…
Ultimately oil dominance will come about to a small part of economy soon… mostly it will be green sector that will contribute to economy energy factor… that is India will go green most by 2030 and that will even further reduce the cost pressure and tackle employment wage and inflation pressures going ahead…
Oil refining I meant India exporting to Europe since two year after Russia Ukraine War.
India has been net importer as a nation always , but when you see what has changed now from before say Pre 2014 the green transition is happening very fast, be it Solar, ethanol blending or green hydrogen by 2030 as you said, once that happens we will largely be in very good position… The way Saudi is reforming itself, its evident that oil sector dependency will be much less going forward. We may be importing from China but again if you hear from many companies con calls everywhere they are trying to replace china in chemical sector (this thing as improved and improving )
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If you hear Kenneth Andrade : He does mention that the current market as of 2023 correlates somewhere to 2013.
Am comparing the relation between 2008 crisis and 2020 crisis and then trying to extend the rope how the series unfolds.
- Kenneth does mention the market will move upwards not easily but with struggle
- He tells us that Indian banks are the best in the world given current scenario
I did notice that the US Bond Yields are going down which is a good sign for inflation - on the contrary the interest rate should go up - but it wont happen… why?
Powell did mention yesterday that they will keep interest rate stable
This is with respect to the price demand during Christmas and the demand/supply gap on any festive season the demand will rise thereby increase in price of commodity and increase in inflation.
Now if FED tries to put pressure on interest rate now that will not yield good result as then they again need to raise it after festive season which is March 2024.
March 2024 - FED might raise the interest rate.
December 3rd will be the count of votes
Disclaimer : this is not a recommendation any post in my thread is not a buy or sell recommendation… am just sharing my thoughts and knowledge for educational purpose
3 Likes
Now since the elections are done - with BJP leading to the victory
Optimism is back into the market.
What are my current thoughts : Am not Ravaan to know everything here 
just making my notes here and this is not to predict or tell you this will happen but this is for my own self to reflect back upon what i said and to gauge the market sentiment.
Market is very smarter than all and there are tons of factors that goes into the market.
- FII who were the sellers of the market - i think they will be the net buyers
- I think the FOMO across the investors will soon start back
- Fuel of optimism will be back across the street.
- I think the market journey started back on 2020 from Kanyakumari towards Kashmir is now somewhere in Madhya Pradesh
- There are 3 runners front, mid & lastly who has not yet started.
Front Runner : You wont make much
Mid Runner : You can make a good return
Last Runner : Riskier option is to stay but they are preparing for something big or something worse.
Coin toss wont work much here.
I still want to look options for
- Power/Renewables
- Pharma
- Chemicals
- Consumer Discretionary
- Defence
Disclaimer : this is not a recommendation any post in my thread is not a buy or sell recommendation… am just sharing my thoughts and knowledge for educational purpose
4 Likes
Chemicals :
Am looking for chemicals that are part of pharma industry for their downstream derivatives or consumption.
Fertilizer sector has not yet revived and will take long time.
Chemical sector as a whole is facing pricing pressure wherein Chinese are living with 0 margin - their source of survival, Chinese Government subsidy - all details you can find in DMCC concall
The revival from my thinking would be :
Pharma → Which will give boost to Chemical (Used in pharma)
Pharma side am thinking about
- LAURUS, SADHANA
Pharma Chemical side am thinking about
2. AARTI IND, ALKYL AMINE, DMCC
Consumer Discretionary am thinking about
- SUDARSHAN, DEEPAK NITRITE, PRIVI
Any other names that you can recall?
As matter of other fact/opinion on the specialty side of chemicals like : EV/FLUORO the management are stating that they have given sample for their end clients and waiting for the approval of the product.
One such example : Fluorochem, Neogen… I think chemical story may take 2-3 quarters at least.
Deepak,Sudarshan & Privi did mention that the demand locally is back wherein they are still waiting for the export demand but - what matters for me here is the volume and size of the local market.
Commodity Side : I think we should do well when it comes commodity side of the market reason being : domestic growth and consumption growth
Cocoa, Maize & Sugar are hot in the list as there is scarcity in them.
Cocoa rots in west has led cocoa to reach of price 46 year high https://www.bloomberg.com/news/newsletters/2023-12-01/chocolate-gets-pricier-as-cocoa-beans-in-west-africa-rot-from-climate-crisis
Maize Ukraine was one among the top 6-7 list in the world to make corn now due to war situations the supply shortage has increase. Secondly USA being number 1 - has its own cost problem due to inflation. That puts us to Brazil and China : honestly no Idea what’s happening here but the good case scenario is that we are ahead in position by 2 countries in terms of cost and production.
Sugar : India has banned sugar export and also it needs cane for ethanol and sugar process, now i think the government will focus on sugar itself
Given 3 commodity items, this should do well but one has to be aware about the disease factor, cost, demand/supply much more.
Other items like STEEL, PELLETS, REFACTORIES - honestly no idea but i think we should do well when it comes to domestic growth and consumption.
Disclaimer : this is not a recommendation any post in my thread is not a buy or sell recommendation… am just sharing my thoughts and knowledge for educational purpose
10 Likes
So far am being coming to the conclusion :
This is as per my view
- Pharma
- Chemical - that are used in Pharma applications
- Consumer Discretionary : Am seeing at chemical side.
- Commodity - Pellets, Refractories, Steel, Sugar
- Real Estate : Salary has not risen but the rents have increased a lot - so many switching now to own house with EMI payment than paying the same rents. Interest rates are high too, well waiting for the housing interest rate subsidy to kick in.
- Power/Energy (Renewable side) : Solar EPC, Transmission, Transformers, Wind Turbine Companies, Power Finance companies.
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Capital Returns - Edward Chancellor
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The book states that the commodity is a new super cycle when it comes to economic growth and development
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First thing when world markets get hit the next of growth sprouts are
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Economic development
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Defense spending
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Railway spending
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Mining Tools
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Mining
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Cement
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Real Estate
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Home Improvement
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As per the capital returns beer/alcohol industry mainly plays a greater role due to hike in commodity price mainly barley and other commodities
Main beneficiaries would be B2B, B2G
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Capital Returns book states that low interest will kill the destroy the economics because of the low interest lending and less output and therefore bad debt and poor economy
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Mainly when it comes during capital returns
- Banks especially
- SMALL FINANCE BANKS will do well
- LARGE BANKS will do well
- MICRO FINANCE will do good when there is a time between national election end and reelection of national election
- Banks especially
However one needs to watch out for Secured Lending, Unsecured Lending
All the above states well - only if we can move the needle of GDP, we need large amount of exports to happen in a big way to make economic progress.
This can happen via SERVICE sectors such as IT, PHARMA or in house MANUFACTURING such as CHEMICALS, ELECTRONICS.
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Snippet of Maruti Suzuki Sales (Gaint)
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I see more sales coming in from Sport Utility Vehicles (SUV) as per my notice : Mahinda and Mahindra, Toyota, Suzuki (SUV & COMPACT SUV) sectors doing well due to the fact of SMART HYBRID technology. PS : I even got Brezza
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Apart from cars two wheeler (Electric) and Commercial Vehicles are also doing well
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During the month of December AUTO OEM tend to prioritize inventory clearance.
Snippet of 2W ELECTRIC
For one such example
Subsidy
file:///C:/Users/ADMIN/Downloads/E__didm_WriteReadData_Pdf_Gazette%20for%20Scheme%20Extension.pdf
PLI Coming Through
To make it to PLI
| Approved PLI Applicants – Champion OEM (Except 2W & 3W) | |
|---|---|
| S. No. | Company applicant name |
| 1 | Ashok Leyland Limited |
| 2 | Eicher Motors Limited |
| 3 | Ford India Private Limited |
| 4 | Hyundai Motor India Limited |
| 5 | Kia India Private Limited |
| 6 | PCA Automobiles India Private Limited |
| 7 | Pinnacle Mobility Solutions Private Limited |
| 8 | Suzuki Motor Gujarat Private Limited |
| 9 | Tata Motors Limited |
| 10 | Mahindra & Mahindra Ltd. |
| Approved PLI Applicants – Champion OEM 2W & 3W | |
|---|---|
| S. No. | Company applicant name |
| 1 | Bajaj Auto Limited |
| 2 | Hero MotoCorp Ltd. |
| 3 | Piaggio Vehicles Private Limited |
| 4 | TVS Motor Company Limited |
| Approved PLI Applicants – New Non-Automotive Investor (OEM) | |
|---|---|
| S. No. | Company applicant name |
| 1 | Axis Clean Mobility Private Limited |
| 2 | Booma Innovative Transport Solutions Private Limited |
| 3 | Elest Private Limited |
| 4 | Hop Electric Manufacturing Private Limited |
| 5 | Ola Electric Technologies Private Limited |
| 6 | Powerhaul Vehicle Private Limited |
Existing automobile and auto component manufacturing companies approved under Component Champion Incentive Scheme:
- Maruti Suzuki India Limited
- Pinnacle Mobility Solutions Private Limited
- Bharat Forge Limited
- Hero MotoCorp Ltd.
- Advik Hi-Tech Private Limited
- Aisin Automotive Haryana Private Ltd.
- Alicon Castalloy Limited
- Aptiv Components India Private Limited
- Aptiv Connection Systems India Private Limited
- Asahi India Glass Ltd.
- Asia Investments Private Limited
- Automotive Axles Limited
- Axletech India Private Limited
- BASF Catalysts India Private Limited
- Bosch Automotive Electronics India Private Limited
- Bosch Chassis Systems India Private Limited
- Bosch Limited
- Cummins Technologies India Private Limited
- Daicel Safety Systems India Private Limited
- Dana Anand India Private Limited
- Dana TM4 India Private Limited
- Danblock Brakes India Private Limited
- Delphi-TVS Technologies Limited
- Denso Ten Minda India Private Limited
- Garrett Motion Technologies India Private Limited
- Hella India Automotive Private Limited
- Hero Cycles Limited
- Imperial Auto Industries Limited
- International Tractors Limited
- J.K. Fenner (India) Limited
- Jay Ace Technologies Limited
- Jay Fe Cylinders Limited
- KalyaniTechnoforge Limited
- Krishna Landi Renzo India Private Limited
- Krishna Maruti Ltd.
- Kyungshin Industrial MothersonPvt Ltd
- Linchpin Technologies Private Limited
- Lucas-TVS Limited
- Lumax Auto Technologies Limited
- MahleAnand Thermal Systems Private Limited
- Mando Automotive India Private Limited
- Minda Corporation Limited
- Minda Industries Limited
- Mitsubishi Electric Automotive India Private Limited
- Motherson Sumi Systems Limited
- Motherson Sumi Wiring India Limited
- Musashi Auto Parts India Private Limited
- Napino Auto and Electronics Limited
- Neel Metal Products Limited
- Neolite ZKW Lightings Private Limited
- Nidec India Private Limited
- Padmini VNA Mechatronics Limited
- Pricol Limited
- Rockman Industries Limited
- Sandhar Technologies Limited
- Sansera Engineering Limited
- Schaeffler India Limited
- Sharda Motor Industries Limited
- Sona BLW Precision Forgings Limited
- Steel Strips Wheels Limited
- Sundram Fasteners Limited
- Tata Autocomp Systems Limited
- Tata Cummins Private Limited
- Tata Ficosa Automotive Systems Private Limited
- The Hi-Tech Gears Limited
- Toyota Industries Engine India Private Limited
- Toyota Kirloskar Auto Parts Private Limited
- Tube Investments Of India Limited
- Valeo India Private Limited
- Varroc Engineering Limited
- Vitesco Technologies India Private Limited
- Wabco India Limited
- Yazaki India Private Limited
file:///C:/Users/ADMIN/Downloads/E__didm_WriteReadData_Pdf_DHI_PLI.pdf
Credits :
https://fame2.heavyindustries.gov.in/content/english/13_1_brief.aspx
LASTLY
Summary :
- Ministry of Heavy Industries EV Subsidy under FAME-II will come to end on March 2024 now this doesn’t mean for all states : I think states can come up with their own set of subsidy and so - just an example -Karnataka is planning to revise the EV subsidy till 2028.
- Ministry of Heavy Industries may plan to extend SUBSIDY or may not that depends on the total volume of EV sales and adoption.
- PLI Scheme will start to kick in from 2024 till 2028 there are various categories wherein all auto either OEM, EV, AUTOMATION falls into place and the PLI will kick in to support the AUTO industry to smooth transit from IC engine to future technologies - this doesn’t mean that IC will go burst - future will be for all IC Engine, EV, Hydrogen wherein EV, HYDROGEN are in nascent stage.
- If you notice Suzuki sales - SUV segment has grown phenomenal
- If you notice OLA sales - EV has done good in terms of sales volume
- if you notice COMMERCIAL vehicle - they have done average.
- if you notice OEM one such example was SSWL - has done good in 2 wheeler, passenger segment but not good in others.
- Remember the company will only receive PLI if an only if they will be able to meet the target within that year and if they don’t then NO PLI then they have to wait for next year.
Next Leading indicator - I think
- SUV with smart hybrid technology will do extremely well in passenger car segment
- EV will do well
Future Changes
- Battery technology is in nascent stage now as we are using Lithium - ion in most case but KPIT came out with strong breakthrough using sodium - ion… this can be game changer as the availability of sodium is much there and cost effective (BUT WILL TAKE TIME - affect on end industry :
Sodium is not a perfect replacement for lithium . It is heavier, meaning sodium batteries will weigh more than lithium ones of an equivalent capacity
The safety of sodium batteries is much higher than that of lithium batteries : In tests such as overcharge and discharge, short circuit, acupuncture, etc., it can be achieved without fire or explosion. The biggest advantage of sodium batteries is not only safety, but also low cost.
Sodium-ion batteries are generally considered to be better for fast chargingThis is because sodium ions are larger than lithium ions, which means that they can move more easily through the battery’s electrolyte. This allows for faster charging and discharging.
Overall, sodium-ion batteries are a promising alternative to lithium-ion batteries, and they may eventually become the preferred battery technology for fast charging. However, they are not yet as mature as lithium-ion batteries, and their performance is not as good.
Here are some additional things to consider when comparing sodium-ion and lithium-ion batteries:
- Energy density: Sodium-ion batteries have a lower energy density than lithium-ion batteries, which means that they can store less energy. This means that sodium-ion batteries may not be suitable for applications where high energy density is required, such as electric vehicles.
- Cost: Sodium-ion batteries are generally cheaper than lithium-ion batteries. This is because sodium is more abundant than lithium, and it is also less expensive to process.
- Availability: Sodium-ion batteries are not yet as widely available as lithium-ion batteries. This is because sodium-ion batteries are a newer technology, and they are still under development.
1 Like
Current Demand and Trends
- Data Centre
- Renewable Energy
- Digital Consumption Growth
- EV
All these would pile up to battery demand, before going ahead with new industry growth.
Lithium would continue to do well in near to medium term i think or at least 2-3 years… Then Sodium might take the lead…
However here are few things to consider.
- Battery needs Fluoro chemicals
- Solvents
- Electrolyte Salts
- Graphite
- Electrolyte additives
- Soda Ash
Niche area : Salts, Additives, Fluorochem
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Objectives
- Largest animal health company from India and amongst the top 25 in the world
- Presence across nearly 100 countries in regulated and less regulated markets
- 2/3rd of our revenue comes from regulated markets
- Only company in India to have set up a U.S. FDA-approved greenfield veterinary API facility.
- Commercialization of new products as part of our long-term contract with a leading animal health player in the world
- in the top 5, in fact, now in the top 3 of the ruminant cattle animal health business
- Aiming to grow in double digits
- Planning on hitting double-digit margins for the company by the exit of this year
Key Points
Spain
- Has both manufacturing as well as distribution
- It’s also one of the largest animal health markets in Europe
- Planning to launch new products in Spain, in the area of ruminant animals which is Production Animals.
Belgium
- Distributing more Companion Animal products in the area of pet care.
Netherlands
- Distributing more Companion Animal products in the area of pet care.
Scandinavia, Sweden
- Distributing more Companion Animal products in the area of pet care.
Germany :
- Planned to close the injectables plant factory, is a formulation unit.
- Buy APIs from other suppliers in Germany
Turkey
- Turkey is one of the leading markets in the world for animal health and our company has a strong presence there
- Turkey is a very important animal health market. It is in the top 10 markets of the world
- Turkey also injectables and has Europe GMP-certified facility
- Turkey also has manufacturing facility
- Actions taken on currency devaluation and Macro risk :
- Taken price increases to take advantage of opportunity to counter the inflation.
- Started looking at the basic operating and cost structure to ensure that they are efficient in such a volatile environment
- Opportunity to use Turkey as a base for exports, which also hedges in terms of foreign exchange and at the same time
Mahad Maharastra :
- Non USFDA plant
- Largely makes albendazole
- WHO Geneva pre-approval inspection underwent
Visakhapatnam | Vizag
- USFDA Plant
- Vishakhapatnam facility underwent a US FDA inspection at the end of which we had one procedural observation and a response to which has been shared
Brazil
- Brazil is one of the world’s, and the top 5 market as far as animal health is concerned
- Planning to Grow in double digits, partly because they had made entry into companion animals last year -they had acquired a small company to sort of make the entry into companion animals
Tarapur :
- Discontinuation of API manufacturing operations in Tarapur.
Tineta business : Didn’t went through
Nourrie Business : Brazil - Dont know how this is spanning
API Business : 70% of business in the API comes from the regulated markets.
Company mentions Scale of operations and the volume increases on API will get them to cost advantage even in places where they may not be able to pass on the price.
Turkey Issue with LIRA devaluation :
- Management is seeing growth in the business constantly, and that reflects really ability to grow both volume as well as pass on price increases linked to that.
- As far as the depreciation of the lira is concerned, the only place that can potentially help us is if we increase our exports out of Turkey.
- That is an effort which is going on, we are slowly increasing our exports out of Turkey. But that’s really not substantial enough to say that it will, it’s going to make a big impact on the results. But right now, the thing is, yes, because we manufacture locally in Turkey, it helps us to be competitive.
Products
- Total products in pipeline are close to 8 products and then eventually 12 for which they are developing the necessary dossiers
- Launched range of formulations for gut health of animal in Europe
- Filed for new products with 8 new filings this year and we have started the commercialization of new products as part of their long-term contract with a leading animal health player in the world.
- On course to build a strong portfolio in gut health products as planning to expand these launches to other markets outside of Europe.
- Launching new products in Injectables for Ruminant animals later in this year.
- Medicines for Production animals
- Production animals business has been impacted by high feed costs due to issues relating to war and other farm-related issues. . This, in turn, has impacted the demand for nutritional additives and medicines.
- Medicines for companion animals
- The demand for medicines for companion animals remains intact and is growing as pet adoption, incidence of diseases and lifetime of pets increases.
- Filings : 30 USVMFs and 17 CEP filing
- They have commercialized a new product with one of the top animal health companies. But this will really fructify into a formal business more after one year or two years : At this point of time, it has been commercialized, validated, NBF being approved, and management thinks that this will also turn out to be a bigger opportunity for them going ahead, the further products are also under development.
- Three to four projects which are in the pipeline for the next year
Challenge
- Specific challenge in Turkey due to the high inflation and devaluation of the currency which had impacted results this quarter. However, they had already initiated strong pricing actions as well as cost containment measures, which will result in margin improvement from the fourth quarter.
- Also Europe inflation and pricing challenge.
Management steps ahead
Project Pragati : Management said that they are in the mid stage so somewhere between 2-3rd point.
- First is really around the improvement of yields and efficiencies around some of our products : which make the cost of manufacturing lower and also make these products more competitive.
- The second part of Project Pragati involves the overall cost structure of the operation in terms of the manufacturing footprint, etc
- The third is in the area of procurement.
- The fourth is relating to consumables, raw materials, utilities, etc
- The fifth course making sure that they are driving the higher-margin pipeline in this
Turkey
Turkey wage increased by 49%
On the positive side if the company can export the products - there is a positive sign however since the company mentions that Turkey is its biggest market - due to current levels of the inflation - it would be difficult.
Credits :
Turkey’s aggressive rate hikes so far won’t be enough to cut inflation to…
Selva Demiralp, professor of economics at Koc University, says “our starting point was a very overheated economy.”
Turkey Inflation Rate
Inflation Rate in Turkey increased to 64.77 percent in December from 61.98 percent in November of 2023. This page provides the latest reported value for - Turkey Inflation Rate - plus previous releases, historical high and low, short-term forecast…
- They had stopped acquisition, which is good as now they can focus on what they have.
- CMO projects will commercialize starting from this year
- API is currently driving their margins now - slowly CMO will add in
- I don’t know about the product sale of B2C side.- which in this inflationary scenario how it will do well : I don’t know, as the feed stock prices are elevated.
- Management is now focusing on Manufacturing, improvising molecule efficiency, CMO
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BATTERY
The Inflation Reduction Act specifies that, starting in 2024, no EV that contains battery components produced by a foreign entity of concern18—defined as China, Russia, Iran, and North Korea—will be eligible for the credit. Beginning in 2025, the same becomes true for critical minerals used in EV batteries.
Now how did I confirm this? AMI Concall
:
Here is as per the chemistry - company wise :
- Key Ingredient - Tata Chemical (Soda Ash)
- HSCL : Lithium Ion Battery components
- Electrolyte Salts - GFL, Neogen, Tatva Chintan
- Electrolyte Additive - AMI Organics, Aether Industries
- Solvent/Catalysis Profile : Tatva Chintan, Balaji Amines
Electrolyte Additive types
- Vinyl Carbonate (VC)
- Fluorinated Ethylene Carbonate (FEC)
- 1,3-Propanesultone (1,3-PS)
- Vinylethylene Carbonate (VEC)
- Others
Solvents
- Ethylene Carbonate (EC): It’s commonly used as a solvent for the electrolyte in lithium-ion batteries due to its high dielectric constant and ability to dissolve lithium salts.
- Dimethyl Carbonate (DMC): Often used as a co-solvent in combination with other solvents like EC due to its good solubility with lithium salts. (Balaji Amines, Tatva Chintan, Paushak)
- Diethyl Carbonate (DEC): Another solvent used in combination with EC and DMC in the electrolyte of lithium-ion batteries. (Tatva Chintan)
- Ethyl Methyl Carbonate (EMC): Similar to DEC, EMC is used as a co-solvent to improve the electrolyte’s properties.
- Propylene Carbonate (PC): It’s also a common solvent used in lithium-ion battery electrolytes due to its high dielectric constant and ability to dissolve lithium salts. (Balaji Amines)
- Gamma-Butyrolactone (GBL): This solvent can be used in sodium-ion battery electrolytes due to its ability to dissolve sodium salts and improve ionic conductivity.
- 1,2-Dimethoxyethane (DME): It’s another solvent occasionally used in sodium-ion battery electrolytes to enhance the performance of the system.
- Sulfolane: This high boiling point solvent is sometimes used in sodium-ion battery electrolytes due to its good stability and compatibility with sodium salts.
- Monoglyme is one of those solvents used as a mix combination with dimethyl carbonate or other solvents to dissolve the electrolyte salts. So, this becomes the
part of the electrolyte solution within the Lithium battery (Tatva Chintan)
Now Electrolyte Additive can be used either in Sodium Ion or in Lithium Ion Profiles.
The real threat is to the Electrolyte salts as in case if market changes to go for Sodium Ion:
Here are their common variances :
- Sodium-ion batteries might use sodium salts like sodium hexafluorophosphate (NaPF6), sodium chloride (NaCl), sodium perchlorate (NaClO4), or other sodium-based compounds.
- Lithium-ion batteries commonly use lithium salts such as lithium hexafluorophosphate (LiPF6), lithium carbonate (Li2CO3), lithium perchlorate (LiClO4), and lithium tetrafluoroborate (LiBF4).
Lithium - We do know that companies like Neogen, GFL, Reliance are making a mark.
For Sodium ion - only 4-5 companies have developed this product and has patent.
- Faradian (Acquired by Reliance)
- BYD (China)
- KPIT (India)
- CATL : Cherry Auto (Chinese)
Coming to the profile of Sodium vs Lithium comparative difference
Credits : Lithium-ion vs. Sodium-ion Batteries: Sustainable Energy Options for the Future
Since i spoken about batteries why not Super capacitors than only the battery side we are looking into?
Lithium Ion
- Relies on Chemistry reactions
- Consist of Anode and Cathode
How it works : These two sides are submerged in a liquid electrolyte and separated by a micro-perforated separator, allowing only ions to pass through. During batteries’ charging and discharging, the ions tend to flow back-and-forth between the anode and cathode. While this ion transfer process occurs, the battery gets heated up, expands, and then contracts. These reactions gradually degrade a battery, resulting in a reduced lifespan of batteries.
Super Capacitors
- Don’t rely on Chemical Reactions
- They store potential energy electrostatically within them
Supercapacitors use dielectric or insulator between their plates to separate the collection of positive (+ve) and negative (-ve) charges building on each side’s plates. It is this separation that allows the device to store energy and quickly release it. It basically captures static electricity for future use.
Super capacitors are good for immediate burst of power.
Power Density, Energy Density vs Storage Forms
Credits : Supercapacitors – A Viable Alternative to Lithium-Ion Battery Technology? - FutureBridge .
Going forward now they are trying to collaborate Lithium + Supercapacitors = naming it Lithium Ion Capacitors
Here is the video : https://www.youtube.com/watch?v=XlON0Uj2Zk0
Coming to the Indian company profiles
Capex Plans - All of them have plans to expand based on their chemistry.
Environment Clearance
- Tatva Chintan : https://environmentclearance.nic.in/DownloadPfdFile.aspx?FileName=fgftrmkwVeXyTcQelv2gWFJL3QzFq5qLxOqYwfPDYCdMNPl6td6l3jIDNGgvnquPj6Tkbklk7Qu3XpwsBEeRVW374LqDQYtnIDU3EB6tyQq3C2hsR8Nh4wR4YO00qXR4ep/9bER2jqKROPPHJ2GdYZjuLMN6VT7NAyqLyRP4eU0WaRkDA8Vp5qmlPa7uSY67&FilePath=93ZZBm8LWEXfg+HAlQix2fE2t8z/pgnoBhDlYdZCxzUlDadBGu7t8v4JoQvNU6UBlSmL0YQ7WQYaxkvlQvexKQ==
- Balaji Amines : https://environmentclearance.nic.in/writereaddata/Online/TOR/0_0_13_Jul_2015_190624310RT2EHBriefSummary.pdf
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