Custom Duty Failed To Reduce Landed Price Of Solar Glass: Borosil

Custom Duty Failed To Reduce Landed Price Of Solar Glass: Borosil

Indian solar glass manufacturer Borosil Renewables claimed that the imposition of Customs Duty against the import of solar glass failed to reduce the burden of Indian solar glass makers. In the latest investor call, the top management of the firm said that blamed Chinese solar glass makers for reducing their solar glass prices, hurting the avenues of domestic players.

P K Kheruka, Executive Chairman of the firm said that the firm had to forcibly reduce the selling price of its products to fight the fierce price battle. The total sales of the firm during the third quarter of the current financial year grew by 14% in volume over the previous quarter, but could achieve only a growth of about 3.6% by value from — to INR275.28 crores, up from INR265.61 crores in the preceding quarter.

“The price pressure came from a steep decline in average ex-factory prices driven by increased Chinese dumping at ever lower prices. These fell to about INR105 per millimeter per square meter, which would correspond to about INR42,000 per ton, down from the preceding quarter’s average selling price of INR115 per millimeter per square meter, which would work out to about INR46,000 a ton,” he said.

Kheruka said that the imposition of Custom Duty could not help the firm as the Chinese players further stepped down their prices. “The imposition of a 10% basic customs duty on imports from 1st October last year failed to make any impact on the landed prices of the imported glass because the Chinese cut their export FOB prices by 18%,” it said.

It also added, “This decline in the landed price of imported glass was compounded by a drop in ocean freight during the quarter. Additionally, the company had to incur an expense of INR4.59 crores on account of a non-routine repair. It also incurred a debit of expenses related to the rights issue, which further impacted the EBITDA by another INR2.01 crores.