Borosil Glass Works’ solar business consolidation likely to wrap up soon

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Borosil Glass Works plans to combine three related entities (its Gujarat Borosil solar glass business, as well as Vyline Glass Works and Fennel Investments) while simultaneously demerging its consumer and scientific glassware business into a wholly owned subsidiary, Borosil Ltd.

The restructuring scheme was advised by PwC and is subject to the approval of the relevant authorities and shareholders of the company. The process is expected to be completed by the second quarter of FY 2019-20.

The simplified holding structure will eliminate cross-holding, giving shareholders the choice to own the Borosil Ltd. and/or Borosil Renewables businesses independent of each other. Currently, Borosil Glass Works shareholders indirectly own a part of Gujarat Borosil’s business.

The company sees high growth prospects in the solar business, given the government’s 2022 capacity target of 100 GW and its imposition of anti-dumping duties against shipments of Chinese solar glass. Exports are emerging as a growth kicker for Gujarat Borosil, which now has top-tier solar glass clients in its fold — both domestic and international.

Gujarat Borosil’s revenues grew 8.5% from Rs 199.8 crore in FY 2017-18 to Rs 216.8 crore in FY 2018-19. It is now undertaking brownfield expansion to more than double its existing capacity. The company enjoys market leadership in the Indian solar glass market, claiming its product is cost competitive with those of Chinese suppliers. It has state-of-the-art manufacturing, with strong testing and R&D infrastructure, and has a facility for tempering thinner (2mm) glass, which has high potential in both the domestic and international markets.