New Delhi, April 1: Diversified firm SRF Ltd today said it would set up a pilot plant to manufacture a type of refrigerant gas for cars that is more environment-friendly.

"The board of directors of SRF has approved an investment proposal to set up a pilot plant to manufacture next-generation refrigerant gas (HFO 1234yf)," the company said in a statement.

SRF will be the first company outside the US and Europe to manufacture the gas, which is expected to find increasing use in car air-conditioning systems globally, the company said.

"The in-house technology will also allow SRF to manufacture, brand and sell next- generation refrigerant gas in India and global markets," it added.

India largely depends on hydrofluorocarbon (HFC) refrigerants, which are criticised as a "super greenhouse gases" because of their high global warming capacity. HFCs have at least 300 times more warming potential than carbon dioxide.

India and other developing countries have been under significant pressure from developed countries to phase out HFCs and opt for greener alternatives.

SRF is a multi-business entity, which is also engaged in the manufacturing of chemical-based industrial intermediates. The company had posted a 41 per cent jump in its consolidated net profit at Rs 101 crore for the third-quarter ended December.

Shares of the company were 2.31 per cent down at Rs 1,275.75 on the Bombay Stock Exchange today.