Borosil Renewables , a leading solar glass manufacturer, has announced a strategic shift in its operations, exiting the German market and doubling down on India's burgeoning solar industry. This move comes after the company faced significant challenges in its European venture, resulting in a substantial one-time loss.

German Subsidiary Declared Insolvent

Borosil Renewables has declared its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH, insolvent, booking a one-time loss of ₹325.91 crore. The company had acquired this German solar glass facility in 2022 with high hopes of expanding into the European market. However, the venture faced severe headwinds when Chinese manufacturers flooded the European market with over 80 GW worth of ultra-cheap solar modules.

Market Disruption and Financial Impact

The influx of Chinese modules caused a dramatic drop in prices, with module costs plummeting from 25 cents to below 10 cents. This market disruption led to monthly losses of ₹8.50-9.00 crore for Borosil's German operations. Despite attempts to mitigate losses and appeals for policy support from German authorities, the company found no reprieve, ultimately leading to the decision to exit the market.

Refocusing on India's Solar Market

In the wake of its European setback, Borosil Renewables is now refocusing entirely on India's solar market, where it sees significant growth potential. The company's standalone revenue in India grew by 37% year-on-year to ₹332.26 crore in Q1. More impressively, EBITDA surged by 211% to ₹92.53 crore, with margins reaching a robust 27.80%.

Favorable Policy Environment in India

The company's renewed focus on the Indian market comes at an opportune time. In December, India imposed anti-dumping duties on Chinese and Vietnamese solar glass imports, creating a more level playing field for domestic manufacturers. This policy move has improved domestic pricing to ₹135-140 per mm square, bolstering the prospects for local producers like Borosil Renewables.

Ambitious Expansion Plans

Capitalizing on the favorable domestic market conditions, Borosil Renewables has announced an ambitious ₹950 crore expansion plan. This initiative involves building two new 300-tonne furnaces at its Bharuch facility in Gujarat. The expansion will be funded through a combination of equity, internal accruals (₹650 crore), and debt (₹300 crore).

Addressing India's Solar Glass Supply Gap

The expansion targets a significant supply gap in India's solar glass market. Currently, domestic capacity stands at only 15 GW against a projected demand of 50 GW. With this expansion, Borosil Renewables aims to play a crucial role in meeting the country's growing demand for solar glass, supporting India's renewable energy goals.

Looking Ahead

While the company has officially exited its German operations, it remains open to future opportunities in Europe, should favorable policies emerge. For now, Borosil Renewables is firmly focused on capitalizing on India's solar boom, leveraging its strong domestic position and the supportive policy environment to drive growth and profitability.

In related news, the company recently received an advisory letter from the National Stock Exchange of India Ltd. regarding a minor compliance issue related to the lock-in of pre-preferential shares. Borosil Renewables has assured that this advisory has no impact on its financial operations or other activities and has committed to exercising due diligence in future applications.

As India continues its push towards renewable energy, Borosil Renewables appears well-positioned to play a significant role in the country's solar glass supply chain, turning its European setback into an opportunity for domestic growth and expansion.

Borosil Renewables Limited (BRL), a key player in the renewable energy sector, has taken a significant step in its capital structure by allotting 1,35,317 equity shares following the conversion of warrants. This move, announced on July 30, 2025, marks an important development for the company and its shareholders.

Warrant Conversion Details

The allotment comes as a result of the partial conversion of warrants issued on February 14, 2025. Initially, BRL had allotted 78,80,436 warrants on a preferential basis to non-promoter category investors. Each warrant was convertible into one fully paid-up equity share of Re. 1/- face value within an 18-month period, at an issue price of Rs. 530.00 per warrant.

Financial Aspects of the Conversion

The warrant conversion process involved a two-step payment:

1. Initial payment: 25% (Rs. 132.50 per warrant) paid at the time of warrant allotment.
2. Balance payment: 75% (Rs. 397.50 per warrant) paid at the time of conversion application.

Allotment Breakdown

The Management Committee of the Board of Directors approved the allotment of 1,35,317 equity shares to five warrant holders who opted for conversion. The breakdown of the allotment is as follows:

Impact on Share Capital

Following this allotment, Borosil Renewables' paid-up equity share capital has increased to Rs. 13,31,85,970, divided into 13,31,85,970 equity shares of Re. 1/- each. The newly allotted shares will rank pari-passu with the existing equity shares of the company.

Compliance and Transparency

The company has duly informed the BSE Limited and the National Stock Exchange of India Ltd about this development, adhering to regulatory requirements. This information has also been made available on the company's official website, ensuring transparency for all stakeholders.

This strategic move by Borosil Renewables not only strengthens its capital base but also demonstrates the confidence of warrant holders in the company's future prospects. As the renewable energy sector continues to grow, such capital actions may play a crucial role in supporting the company's expansion and operational plans.