Borosil Renewables Plans To End Up Being Largest Non Chinese Solar Glass Maker

May 10, 2022 01:06 PM ET
  • Solar panel glass maker Borosil Renewables has announced that it will invest Rs 1,500 crore over the following 2 years to broaden its capacity by nearly 2.5 times and supply glass for 15 GW of solar modules by FY25.

Since March 2022, India has around 15 GW of solar module production capacity. Due to stiff competitors from discounted imports and reduced installations, the actual use of the residential manufacturing in the country is about 6 GW each year (about average 40-45% utilisation). However, this trend is anticipated to transform with a desirable policy structure, which will help develop enablers for financial investments into residential manufacturing. Concerning 37 GW brand-new capacity expected to be included by different existing and new players taking the capacity to over 50 GW.

" We are doubling down on our investments because being the very first and also the only residential manufacturer of photovoltaic panel glasses we see skies is the limit for demand. Accordingly, we are spending another Rs 1,500 crore to take our capacity to 1,550 TPD by FY24 and also to 2,100 TPD by FY25 which will assist us provide 15 GW of solar modules," Pradeep Kheruka, executive chairman of Borosil Renewables, told a news agency.

It is worth keeping in mind that the share of solar in renewables in India is raising: Out of overall mounted power generation capacity of 399 GW since March 2022 in India, renewables form around 27% of the very same (110 GW) of which solar (54 GW) has to do with 49% of the renewable capacity. While the target for solar has given that been raised to set up 300 GW by 2030, FY22 witnessed the highest annual installments.

Borosil likewise plans to buy its latest German acquisition-- Interfloat Group to boost its capacity to 500 TPD (Tonnes Per Day) from 300 TDP currently by 2023, "With these capacity augmentation, by FY25 we will be able to supply 2,600 TDP of photovoltaic panel glasses that can generate 15 GW of power and also make us the largest non-Chinese-owned business in the world," Kheruka claimed, including all the domestic growth will remain in as well as around the company's Baruch facility in Gujarat.

Surprisingly, the anti-dumping duty imposed on the Chinese solar glass is because of finish in July. Borosil specifies that it has currently requested an expansion of the exact same because there is no change in the circumstance. "They remain to dispose, and also we are waiting for the result of our application," suggested Kheruka.

The Borosil Group company had announced the acquisition of Interfloat Group in late April-- the biggest solar glass supplier in Europe-- for 55.5 million euro. The bargain entailed an in advance cash payout of 30 million euro, as well as 22.5 million euro via releasing of fresh equity (by Borosli Universal) as well as 50 per cent sharing of earned profit from 2023, a top Borosil official stated. The procurement, besides apparent synergies in a broader customer base as well as presence in Europe, will certainly include an immediate Rs. 525 Cr topline to BRL and also an extra concerning Rs. 350 Crore after the development of the capacity from 300 TPD to 500 TPD in Europe by the end of CY23.

Last week, the company stated its results for Q4 of FY 2021-22, having delighted in a really strong resurgence in leads and financials over the past 2 years as need has actually expanded worldwide. Borosil reported overall revenue of Rs. 182.3 crores during the period ended March 31, 2022 as contrasted to Rs. 174.25 crores throughout the duration finished December 31, 2021. Net profit came in at Rs. 46.3817 crores through ended March 31, 2022 as against net profit of Rs. 45.73 crores for the period finished December 31, 2021. For the full year, incomes were up 28% at Rs 644.2 crore, while net profit was up 85% at Rs 165.8 crore.

Kheruka recently pointed out the structural shifts in the need for solar glass on the back of technological changes in solar cells and also modules. The module sizes are coming to be bigger and also there is expanding preference for bifacial modules, making use of two glasses in each module as versus one in the event a conventional module. As a result, there is a shift in favour of thinner glass of 2mm around the world. "Borosil is geared up to satisfy this to an excellent level and also is also constructing significant capacities for such products taking a look at future growth," he claimed.

Surprisingly, the ordinary ex-factory prices of tempered solar glass throughout Q4 FY22 were about Rs.141.5 per square metre, per millimeter as contrasted to Rs.112.9 per square meter, per millimeter throughout the equivalent quarter in the previous year. Asked whether he sees the prices reducing or increasing in the next couple of quarters, Kheruka reacted, "This is a very hard concern to answer. I merely can not have any kind of guess on this issue. Our prices are dependent on the worldwide prices as well as what transform they will take is something which is truly speculative. So, I would certainly not such as to have any guess on this."

"On one hand the prices of inputs have increased and also on the other hand the solar glass export prices from China have decreased in the last few months. This is most likely to trigger a small amounts in the margins for the company as well as likewise for the competitors," he included.

The Borosil Group was founded in 1962 in cooperation with Corning Glass of the United States and also makes up two publicly noted entities-- Borosil and also Borosil Renewables.

Borosil makes around 600 consumer and also laboratory glass items such as laboratory glassware, pharma packaging, microwavable kitchenware, and now cookwares tableware and solar glass at its Jaipur, Nashik, Pune as well as Tarapur plants.

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