Savita Oil shares hit all-time high on becoming first in India to produce Ester molecule for EVs

Shares of Savita Oil Technologies Ltd surged over 11% on Tuesday, April 19, after the company announced that it has become the first Indian lubricant company to manufacture the Ester molecule for electric vehicles (EVs).

The Ester molecule is a biodegradable molecule widely used as a solvent in chemical industries. It is also being explored as a cooling agent in EVs.

Following the announcement, the company’s stock gained as much as 11.46% to hit an all-time high of ₹549 apiece on the NSE. However, the stock pared some of its gains to close at ₹538.55 apiece, up 10.03% from its previous close.

Following extensive testing of the Ester molecule on a pilot scale since 2015, Savita Oil Technologies said the the Ester plant was successfully commercialised in August 2023.

Savita Oil Technologies is also exploring the potential use of the molecule for immersion cooling of data centres. This technology is rapidly gaining traction and its market size is currently estimated at $400 million, and projected to grow to $2 billion by 2031, the company said in a stock exchange filing.

As per the filing, finished lubricants formulated with Ester molecules exhibit significantly enhanced performance compared to most conventionally defined synthetic lubricants. The company said some of its main advantages include a 28% reduction in engine deposits in certain tested formulations and a 33% decrease in friction compared to certain Regular Group 3 base oils. Moreover, the finished lubricant is environment friendly due to the biodegradability of esters.

Esters molecule is typically used in sensitive applications such as jet engines, wind turbines and compressors. The molecule comes with a high import price and Savita Oil Technologies said that its product will aim to optimise the technology for the Indian consumer.