Borosil looks to replace the imported glass it uses

Borosil Renewables posted a muted set of second-quarter earnings with revenue growth tepid at just around 5 percent and margin contracting to 24 percent versus the 34 percent last year hit by rising input costs.

Speaking to CNBC-TV18 after the earnings, Pradeep Kheruka, Chairman at Borosil Renewables said demand is high now and sales going ahead should not be a problem. However, as he says, "there is no such thing as cheap glass".

Currently, the glass being used is made in Vietnam and Malaysia, which the company says is expensive now as input cost. Therefore the company will explore a production shift.

"We have the lowest cost of production in the world. Yes, it's a fact that their glass is subsidized and ours is not. We pay all the taxes that are due on any manufactured product, whereas the other stuff is subsidized. So we have a countervailing duty on the glass coming in from Malaysia," Kheruka said.

Borosil Renewables recently acquired 86 percent stake in the Interfloat Group, which is the largest solar glass manufacturer in Europe.

Speaking about import duties not being renewed Kheruka said, "The duty not going to be renewed, came as came as a surprise to us and therefore what we are planning to do is we are going to stabilize production on the third furnace, and then we will take up the fourth one,” he said.