Tanfac Industries has signed a long-term supply contract with a Japanese customer for the supply of fluorinated chemicals, strengthening its presence in the global specialty chemicals market and enhancing long-term revenue visibility.

Under the agreement, the company will supply around 7,500 metric tonnes per annum of fluorinated chemicals, with an estimated contract value of Rs 3.37 billion per year. The total value of the contract is approximately Rs 23.62 billion over a seven-year period. The agreement is scheduled to come into effect from January 1, 2027, and is backed by committed volumes, providing earnings predictability and stability over the long term.

The contract is expected to significantly bolster Tanfac’s domestic and export portfolio while reinforcing its reputation as a reliable supplier in the international fluorinated chemicals market. With assured offtake over multiple years, the agreement supports efficient capacity utilisation and reduces demand volatility, aligning with the company’s long-term growth strategy.

The long-term supply arrangement also underpins Tanfac’s ongoing investments in fluorinated chemicals, particularly in value-added downstream products. The committed volumes under the agreement account for nearly 37.5 per cent of the company’s recently announced fluorinated chemical plant capacity, offering strong visibility on future utilisation levels and cash flows.

Commenting on the development, Afzal Malkani, Managing Director, Tanfac Industries, said, “This contract represents a significant step in deepening our engagement with global customers and reflects the confidence placed in our manufacturing capabilities and quality standards. The long term structure of the agreement provides revenue stability, representing 37.5 per cent of the recently announced fluorinated chemical plant capacity and aligns with our strategy of expanding value added downstream fluorinated chemicals portfolio and building durable relationships with global customers.”

With this agreement, Tanfac Industries continues to strengthen its international footprint while advancing its focus on specialty fluorinated chemicals, long-term partnerships and sustainable value creation for stakeholders.