SRF Limited , a diversified chemical company, has been hit with an anti-dumping duty order and associated penalties totaling Rs. 4.20 crore. The order, issued by the Commissioner of Customs, Chennai-II, relates to the import of Adhesive Activated High Tenacity Polyester Yarn of 900D.

Details of the Order

The order breaks down as follows:

Dispute Over Classification

The crux of the issue lies in the classification of the imported yarn:

• SRF's Position: The company imported the yarn with nil anti-dumping duty, classifying it under 'Yarns having denier below 1000'.
• Customs Authority's Stance: The authority rejected this assessment, imposing differential duty along with applicable interest and penalties.

Company's Response

SRF Limited has taken a firm stance on the matter:

• Legal Position: Based on legal advice, the company's management considers the demand legally untenable.
• Next Steps: SRF plans to contest the order in appropriate legal forums.

Regulatory Disclosure

In compliance with SEBI regulations, SRF Limited has made a formal disclosure to the stock exchanges regarding this development. The disclosure, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provides detailed information about the order and its potential impact.

Trading Window Closure

In a separate but related development, SRF Limited has also announced the closure of its trading window:

• Period: From October 1, 2025, until 48 hours after the declaration of Unaudited Financial Results for the Quarter and Half year ended September 30, 2025.
• Purpose: This is in line with the company's Code of Conduct and SEBI regulations to prevent insider trading.

The date for the Board Meeting to consider these financial results will be announced separately.

As this situation unfolds, stakeholders will be keenly watching how SRF Limited navigates these regulatory challenges and their potential impact on the company's financial position.

The chemical manufacturing sector in India is set for a significant shift as the Directorate General of Trade Remedies (DGTR) takes action to protect domestic industry interests. In a recent development, the DGTR has imposed anti-dumping duties on imports of R-134A refrigerant from China, a move that directly impacts SRF Limited , a key player in the refrigerant chemicals sector.

Understanding the Impact

R-134A, also known as tetrafluoroethane, is a widely used refrigerant in various applications, including automotive air conditioning systems. The imposition of anti-dumping duties on Chinese imports of this chemical is likely to have far-reaching consequences for the domestic market and its participants.

Implications for SRF Limited

SRF Limited, a diversified chemical company with a strong presence in the fluorochemicals segment, stands to be significantly affected by this trade measure. As a domestic producer of refrigerants, including R-134A, SRF may experience several outcomes from this decision:

1. Increased Market Share: With duties imposed on Chinese imports, SRF could potentially capture a larger share of the domestic R-134A market.

2. Pricing Power: The anti-dumping duty may allow SRF to adjust its pricing strategy in the domestic market, potentially leading to improved margins.

3. Production Ramp-up: To meet the expected increase in domestic demand, SRF might need to consider scaling up its R-134A production capacity.

4. Competition Dynamics: The company may face intensified competition from other domestic producers who will also benefit from this protective measure.

Broader Market Implications

The DGTR's decision reflects the government's commitment to supporting domestic manufacturers and addressing unfair trade practices. This move is expected to level the playing field for Indian producers of R-134A, potentially leading to:

• Increased investments in domestic R-134A production capabilities
• Enhanced focus on research and development in the refrigerant sector
• Possible price adjustments in the short term as the market adapts to the new trade dynamics

New Anti-Dumping Probe on Belting Fabric

In a related development, the DGTR has also initiated an anti-dumping investigation into imports of polyester or nylon belting fabric from China. This new probe appears to be connected to SRF, further highlighting the company's involvement in trade remedy actions.

As the situation unfolds, stakeholders will be closely monitoring how SRF Limited and other domestic players in the refrigerant chemicals and fabric sectors respond to these significant shifts in the market landscape.