Borosil Group expects to cross Rs 7,000-crore revenue mark in 4 years

News Mania / Piyal Chatterjee / 20th October 2024

According to Executive Vice Chairman Shreevar Kheruka, Borosil, a company that deals with glassware, lab equipment, and solar glasses, anticipates doubling its sales to Rs 7,000 crore over the next four years, driven by double-digit growth from all of its business verticals. With three publicly traded companies under its umbrella—Borosil Ltd., Borosil Renewables Ltd., and Borosil Technologies Ltd.—the Kheruka-sponsored Borosil Group anticipates generating about Rs 3,500 crore in revenue in FY25.

According to Kheruka, it expects to invest over Rs 150 crore in a new facility in Gujarat for Borosil Ltd, which produces cookware and glassware, as part of its Rs 250 crore growth and capacity augmentation plans to satisfy demand.on addition, Borosil wants to invest Rs 100 crore on debottlenecking at its Jaipur unit, where it has already invested Rs 450 crore to increase production capacity, in order to boost efficiency and capacity even more. According to Kheruka, Borosil, which has made certain acquisitions in the past, is prepared for new chances in the kitchen sector.

“In 2020, Borosil (Group) had rooted for all three of its companies roughly around Rs 950 crore and in 2025 the same number will be somewhere close to Rs 3,500 crore. So, in the last five years, we grew almost 3.5-4x, which has been a good performance,” he said.

However, Kheruka noted that it will be difficult to grow similarly over 3.5 times over the next five years because Chinese companies are fiercely competing with companies like Borosil Renewables, which are selling solar glass into India at a price that is “much below” their cost of manufacturing.

“We in the next five years going to three and a half X (fold) may be challenging, but I would say we should at least double our revenues from here,” he said, adding, “Our solar business has been in caught in a little headwind because of Chinese companies policies.” As far as solar glass is concerned, Borosil Renewables can definitely double its capacity in the next three years and thereby double turnover. “So there, the turnover is about Rs 1,300-1,400 crore and should double if relevant policies come through. And similarly, on a scientific business this year, we would go close to Rs 500 crore that will grow at a 12-14 per cent or slightly lower,” he said.

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

For the financial year ended on March 31, 2024, Borosil Ltd, posted a revenue of Rs 942.25 crore, while Borosil Renewables had a consolidated revenue of Rs 1,369.28 crore. “We have to put up another Borosil glass tank… at a cost of Rs 150-200 crore. This is another investment plan,” he said, adding, “Another investment that we have planned is actually not in glass at all, but in steel.” Now, plastic bottles are getting replaced by insulated steel bottles, he said.