After A Lull, Borosil Renewables Plans Expanding Production

After A Lull, Borosil Renewables Plans Expanding Production

After a lull, Indian solar glass company Borosil Renewables has planned to take steps towards increasing its production. This comes after two key steps taken by the Indian government. One is the imposition of Basic Customs Duty (BCD) on solar glass import and another one is the imposition of anti-dumping duties against imports of solar glass from China and Vietnam.

The Board of Directors of Borosil Renewables today approved its plan to increase its production by 500 tonnes per day (TPD). The new addition is likely to cost the firm Rs 675 crore.

“The Board has revived the Company’s capex initiatives and approved the expansion of its production capacity by 500 Tonnes Per Day (TPD) (against the previous proposal of 1100 TPD) through one of the two options i.e. either setting up two furnaces of 250 TPD each (SG-4 and SG-5) in one or two phases (Option 1) or a single furnace of 500 TPD (SG-4) (Option 2), at an approximate cost of Rs. 675 crore,” the firm said.

Withdrawal of funding plan 

Borosil Renewables said that it has now also planned to do away with their plans to raise funds by the way of issue of equity shares. It said that now it has planned to withdraw the proposed rights issue. Rather, it said that it has planned to raise funds through the preferential issue of equity shares and warrants.

Cooling down of German plant 

On the other hand in an attempt to reduce losses, Borosil Renewables has also decided to temporarily cool down its operations of its German solar glass plant. The firm attributed this to the alleged dumping of cheap solar modules in Europe from countries like Southeast countries. The German plant operates with a single furnace with 350 tonnes per day capacity. The plant is situated in Tschernitz, Germany.

“Given these circumstances, it is essential to reduce the losses and manage cash flow more effectively. GMB is therefore considering temporary cooldown of its furnace (subject to a controlled cool down to facilitate re-starting once demand stabilises) effective end of December, 2024, while continuing the cold-end operations. However, the processing facilities will remain operational with a minimal workforce for conversion of semi-finished glass into a finished glass for pending orders, with anticipation of full resumption of operations when the demand recovers, The firm said in a filing before the exchanges.