Borosil Renewables Hopes Profitability Sooner Amid Rising Demand for Indian Solar Glass

India's first solar glass manufacturer Borosil Renewables Ltd is hoping a significant step towards success in its Indian operations, and it expects the business profit sooner than expected, as the increasing market demand and the soon-to-be implemented import duty on solar glasses.

The company has been navigating a challenging environment marked by variable shipping costs and evolving regulatory landscapes, but recent developments have bolstered its outlook.

Pradeep Kheruka, Executive Chairman of Borosil Renewables, in an interview with CNBC TV18, said that the price increase has helped the company reduce its losses significantly, bringing it closer to profitability.

Kheruka underlined the impact of increased ocean freight costs due to a shortage of shipping space between China and India. "There was a shortage of shipping space between China and India, and that led to a rise in ocean freight. So landed prices rose, and with that, our selling prices rose by about 6%,"

One of the key drivers of Borosil Renewables' improved outlook is the Indian government's implementation of the Approved List of Models & Manufacturers (ALMM) order.

Effective from April 1, this regulation mandates that solar modules used in government-funded projects must meet specific technical specifications, and only Indian companies have been certified under ALMM so far.

Kheruka added, "The demand for Indian modules has risen very sharply, and that we can see in the sharp rise in demand for Indian glass. So that has improved a lot."

In the first quarter of FY25, Borosil Renewables posted a revenue of 371 crore, marking a 4% increase from the previous quarter. Despite this growth, the company reported a net loss of 14 crore, with margins coming in at 6%.

Kheruka also stressed on the potential positive impact of the coming import duty on solar glass. Starting in October, 2024, the Finance Ministry will start imposing a 10% duty on imports of solar glass. "Once the import duty kicks in, it's going to be even better," Kheruka added.

Kheruka remains positive about the future, he also added, "The ongoing quarter should not be like that, which means that it should be in the black. That's what I am looking for. The month of July was quite promising, and if things continue like that, then we should be in the black in the current quarter," he said.