Borosil Renewables announces ₹675 Crore expansion plan

19 Dec 2024 , 11:48 AM

On Wednesday (December 18), solar glass manufacturer Borosil Renewables Ltd announced that its board of directors had approved key decisions, including a temporary cooldown of its German subsidiary’s furnace, an expansion of production capacity in India, and revised fundraising strategies to support growth amid improving market conditions.

Borosil’s step-down subsidiary, GMB Glasmanufaktur Brandenburg GmbH, situated in Tschernitz, Germany, will temporarily cool down its 350-tonne-per-day (TPD) furnace by December 31, 2024.

This move is the result of diminishing demand for solar glass in Europe, which is being driven by large-scale dumping of solar modules from Southeast Asia, as well as slow EU market circumstances. GMB will continue to process semi-finished glass for pending orders as the market recovers.

In light of recent government actions, such as a 10% basic import charge on solar glass and a provisional anti-dumping duty on imports from China and Vietnam, Borosil Renewables has restarted its capacity expansion plan. The board approved expanding 500 TPD capacity at its Bharuch facility, either through two 250 TPD furnaces in phases or a single 500 TPD furnace, for an estimated cost of ₹675 Crore.

The firm has withdrawn its proposed ₹450 Crore rights issuance, citing the need for more funding to sustain its expansion objectives. Borosil plans to issue up to 1.13 Crore warrants to non-promoter investors at ₹530 per warrant, totaling ₹600 Crore, and 18.86 lakh equity shares to the promoter group at the same price, raising ₹100 Crore. Both initiatives require shareholder and regulatory approvals.

For feedback and suggestions, write to us at [e-mail]