Borosil Renewables unveils ₹675-crore expansion plan and ₹700-crore fundraising – CNBC TV18
Solar glass manufacturer Borosil Renewables Ltd on Wednesday (December 18) said its board of directors has approved key decisions, including a temporary cooldown of its German subsidiary’s furnace, a production capacity expansion in India, and revised fundraising strategies to support growth amid improving market conditions.
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Borosil’s step-down subsidiary, GMB Glasmanufaktur Brandenburg GmbH, based in Tschernitz, Germany, will temporarily cool down its 350 tonne per day (TPD) furnace by the end of December 2024.
This decision stems from declining demand for solar glass in Europe, driven by large-scale dumping of solar modules from Southeast Asia and sluggish EU market conditions. GMB will maintain limited operations to process semi-finished glass for pending orders while awaiting a market recovery.
Also Read: Borosil Renewables eyes margin improvement as anti-dumping duty paves the way for price hikes
In light of recent government measures, including a 10% basic import duty on solar glass and a provisional anti-dumping duty on imports from China and Vietnam, Borosil Renewables has revived its capacity expansion plans. The board approved adding 500 TPD capacity at its Bharuch facility, either through two 250 TPD furnaces in phases or a single 500 TPD furnace, at an estimated cost of ₹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 ₹675 crore,” Borosil Renewables said.
The company has withdrawn its proposed ₹450-crore rights issue, citing the need for a larger fundraising to support its growth initiatives. Instead, Borosil will issue up to 1.13 crore warrants to non-promoter investors at ₹530 per warrant, aggregating ₹600 crore and 18.86 lakh equity shares to the promoter group at the same price, raising ₹100 crore. Both proposals are subject to shareholder and regulatory approvals.
Also Read: Borosil Renewables calls for anti-dumping duty to curb solar glass imports from China
Shares of Borosil Renewables Ltd ended at ₹628.20, up by ₹10.50, or 1.70%, on the BSE.
(Edited by : Shoma Bhattacharjee)
