Borosil faces tough Diwali amid challenging year for consumer business

Borosil, a prominent Indian glassware company headquartered in Mumbai, is facing a challenging Diwali season in its consumer business.

In an exclusive chat with CNBC-TV18, Shreevar Kheruka, the Managing Director & CEO of Borosil attributed the challenges to pricing pressures and a somewhat muted demand, particularly affecting the consumer segment of the business.

Borosil has, however, taken measures to address these challenges, including expanding production capacity and introducing new product categories to sustain growth, he noted.

The segments that drive the company's growth include -- pharma packaging, laboratory benchtop equipment and process sciences.

"Q3 is in line with what we have seen in the first two quarters. So, major deviations are not expected, and we foresee continued growth, albeit at a slightly slower pace than initially projected."

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He pointed out that when the company expanded capacity, it aimed to outperform the growth projections. "We initially set a conservative guidance of 20%, and while we will meet this guidance, surpassing it may not be feasible."

Kheruka highlighted an interesting shift in market dynamics following the COVID-19 pandemic, where a reduction in unorganised imports was observed.

However, there has been a trend reversal, with larger imports now entering the market at lower price points. "This influx has provided customers with more affordable options, impacting our ability to maintain higher prices."

Borosil, with a market capitalisation of ₹5,687 crore, holds a significant presence in India, the USA, and The Netherlands, making it one of the largest glassware producers in the country.

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