Why Struggling Indian Solar Glass Firms See A Ray Of Hope

Why The Struggling Indian Solar Glass Firms See Ray Of Hope

Indian solar glass manufacturers, who were adversely impacted by the alleged dumping of cheap solar glass from countries like China and Vietnam, are now seeing some relief. An investigation by the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, found significant negative effects on Indian solar glass makers due to the influx of cheaper imports from these countries.

As a result, DGTR has recommended the reimposition of anti-dumping duties on solar glass imports from China and Vietnam. This recommendation follows a formal request from Borosil Renewables Limited, the leading Indian solar glass manufacturer, which sought protective measures against such unfair trade practices.

While this move is expected to benefit Borosil Renewables, it is not limited to this company alone. In addition to Borosil, there are four other solar glass producers in India now, including Gobind Glass & Industries, Triveni Renewables, Vishakha Glass, and Gold Plus Float Glass.

However, according to DGTR documents, Borosil Renewables accounts for a substantial 72% of India’s total solar glass production. During the investigation, it became evident that due to ultra-low prices offered by Chinese companies, Borosil Renewables was forced to reduce its selling prices, thereby squeezing its profit margins.

The intense competition from Chinese players also led Borosil Renewables to halt its expansion plans. Despite this, the company managed to leverage its export market and its production unit in Germany to sustain profitability. DGTR’s findings indicated that the alleged dumping resulted in import prices being even lower than the production costs of solar glass in India during the investigation period.

Official documents reveal that a staggering 98% of solar glass imports came from China and Vietnam. DGTR further noted that the domestic industry currently has the capacity to meet 84% of India’s total solar glass demand.

Double Relief for Indian Solar Glass Manufacturers

The outlook for Indian solar glass makers has improved on two fronts. Earlier this year, the Union Finance Minister, in her Budget announcement, reinstated a 10% Customs Duty on solar glass imports. However, domestic manufacturers had been advocating for even higher tariff barriers, including anti-dumping duties, to combat the impact of ultra-low-priced imports.

Now, with the combination of the reinstated Customs Duty and the likely reimposition of anti-dumping duties, Indian solar glass manufacturers can finally breathe a sigh of relief.