Borosil Group expects to double its turnover to ₹7,000 crore in four years

Borosil, which deals in glassware, lab equipment and sunglasses, expects to double its revenue to ₹7,000 crore over the next four years, led by double-digit growth across all verticals, said Executive Vice Chairman Shreevar Kheruka.

The Kheruka family promoted the Borosil Group, which operates with three listed entities under its wing – Borosil Ltd, Borosil Renewables Ltd and Borosil Technologies Ltd – and expects to achieve a turnover of nearly ₹3,500 crore in FY25.

It plans to invest ₹250 crore in expansion and capacity expansion to meet demand, with it planning to invest around ₹150 crore in a new factory in Gujarat for Borosil Ltd, which deals in products such as glassware and cookware . Kheruka said.

Moreover, at its Jaipur facility, where Borosil has already invested ₹450 crore to expand production capacity, Borosil plans to invest ₹100 crore in debottlenecking to improve efficiency and further increase capacity.

“Borosil, which has made some acquisitions in the past, is ready for more such opportunities in the kitchen,” Kheruka added.

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“In 2020, Borosil (Group) had rooted around ₹950 crore across all three of its businesses and by 2025, the same number will be somewhere in the region of ₹3,500 crore. So in the last five years, we have grown almost 3.5-4x, which was a good performance,” he said.

However, Kheruka added that comparable growth of more than 3.5 times in the next five years will be a challenge as companies like Borosil Renewables face stiff competition from Chinese companies, which export solar glass to India at a price which is “much below” their costs. of production.

“It may be a challenge to get to three and a half times (fold) in the next five years, but I would say from here we need to at least double our revenues,” he said, adding: “ Our solar business is caught in a bit of a headwind due to the policies of Chinese companies.”

In terms of solar glass, Borosil Renewables can certainly double its capacity in the next three years and thus double its turnover.

“So there the turnover is around ₹1,300-1,400 crore and should double if relevant policies are implemented. And similarly, for a science company this year, we would go close to ₹500 crore, which will grow by 12- 14 percent or slightly lower,” he said.

Based on this, “I think from ₹3,500 crore to ₹7,000 crore in the next four years will be a reasonable expectation,” he added.

For the financial year ended March 31, 2024, Borosil Ltd posted a turnover of ₹942.25 crore, while Borosil Renewables had a consolidated turnover of ₹1,369.28 crore.

Borosil Scientific, which listed on the stock exchange earlier this year in June following the demerger of Borosil Ltd, had a consolidated turnover of ₹394.57 crore in FY24.

Kheruka, who is also Managing Director of Borosil Ltd, sees good potential in the glassware sector as the urban middle class gradually shifts away from plastic items, while disposable incomes rise with the growth of the economy.

“We are yet to install a Borosil glass tank… at a cost of ₹150-200 crore. This is another investment plan,” he said, adding, “Another investment we have planned is actually not at all glass. but made of steel.” Now plastic bottles are being replaced by insulated steel bottles, he said.

“These were manufactured outside India and we are likely to invest in these,” Kheruka said, adding that the investment amount will be close to ₹100 crore.

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