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

Borosil, which operates in glassware, laboratory equipment and solar glasses, is expecting to double its revenue to Rs 7,000 crore in the next four years, led by double-digit growth from across its business verticals, its Executive Vice Chairman Shreevar Kheruka has said.

The Kheruka-family promoted Borosil Group, which operates with three listed entities under its fold -- Borosil Ltd, Borosil Renewables Ltd, and Borosil Technologies Ltd -- expects to reach a revenue close to Rs 3,500 crore in FY25.

It plans to invest Rs 250 crore for expansion and capacity augmentation to meet the demand, in which it intends to invest about Rs 150 crore on a new plant in Gujarat for Borosil Ltd, which is in the business of products such as glassware and cookware, said Kheruka.

Besides, at its Jaipur unit, where Borosil has already invested Rs 450 crore to expand the production capacity, it has plans to invest Rs 100 crore for debottlenecking to improve efficiency and increase capacity further.

Borosil, which had done some acquisitions in the past, is ready for more such opportunities in the kitchen space, Kheruka added.

"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 added that growing similarly over 3.5 times in the next five years will be challenging as businesses such as Borosil Renewables are facing stiff competition from Chinese companies, which are exporting solar glass into India at a price which is "much below" their cost of production.

"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.

Borosil Scientific, which was listed earlier this year in June after demerger from Borosil Ltd, had a consolidated revenue of Rs 394.57 crore in FY24.

Kheruka, who is also the Managing Director of Borosil Ltd, is seeing a good potential in the glassware business, as the urban middle class is gradually shifting from plastic ware as disposable incomes are on the rise with the growth of the economy.

"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.

"...These were being produced outside of India, and we are likely to invest in this," Kheruka said, adding that the investment amount will be close to Rs 100 crore.