Borosil Renewables expects new capacity coming on stream to aid production
Borosil Renewables is poised to benefit from the new capacity coming on stream, which is expected to significantly aid its production capabilities. While challenges such as subsidized glass production in China and the denial of an extension for anti-dumping duties exist, the company remains optimistic about its future.
Borosil Renewables is anticipating a boost in its production capacity with the addition of new facilities. Pradeep Kheruka, the Chairman of Borosil Renewables, expressed his positive outlook in an interview with CNBC-TV18. The company envisions several factors that could have a favorable impact on its operations, such as improved realization on 2 mm glass, potential protective measures by the US and EU, and increased sales.
However, there are also challenges to consider, including subsidized glass production in China and the denial of an extension for anti-dumping duties, which pose additional considerations for the company's future.
During the interview, Kheruka said, "Revenues are expected to experience a significant boost, potentially surpassing Rs 300 crore per quarter in the future. It's important to note that the newly launched furnace is twice the size of our current furnace."
Kheruka emphasised the crucial role that the newly added capacity would play in enhancing the company's production capabilities. Through the expansion of their facilities, Borosil Renewables aims to meet the rising demand for their products and strengthen their position in the market.
He further expressed optimism regarding the future realization on 2 mm glass, stating that the company anticipates slight improvements. “We are geared up to meet the demand for 2 mm glass as it arises in our own country and that would give us some benefit in terms of slightly better realization on that,” he explained.
Notably, discussions surrounding the Inflation Reduction Act in the United States and the European Union are expected to positively impact their respective domestic production. Borosil Renewables sees this as a potential advantage, as it could lead to an increase in demand for its products within these markets.
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While Borosil Renewables remains optimistic about its future, the company faces challenges, particularly concerning subsidized glass production in China. China's ability to produce glass at subsidized rates presents a competitive disadvantage for Borosil Renewables and other players in the industry.
Borosil Renewables previously benefited from anti-dumping duties imposed on imported glass. These duties were in place for a period of five years, providing the company with a level playing field and protection against unfair competition. The anti-dumping duties acted as a safeguard, allowing Borosil Renewables to strengthen its market position and establish itself as a reliable supplier.
However, the Commerce Minister's recent decision to deny the request for extending the anti-dumping duty presents a new challenge for Borosil Renewables.
Despite the challenges posed by subsidized glass production and the denial of an extension for anti-dumping duties, Borosil Renewables remains confident in its ability to increase sales significantly.
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