Indian solar glass supplier Borosil Renewables Limited will expand its production capacity through the addition of 2 new furnaces of 550 tons per day (TPD) to take the total to 2,100 TPD by the end of CY2024, up from its current capacity of 450 TPD, the company stated during its financial results declaration for Q3/FY2022 (period between October 2021 and December 2021).
Through its currently under construction solar glass line 3 (SG-3), Borosil is adding 550 TPD capacity, which when online in Q2/FY2023 will expand its existing capacity to 1,000 TPD. It has secured the board's approval to further expand the capacity through SG-4 and SG-5 with 550 TPD each to a cumulative of 2,000 TPD.
This 2,100 TPD should be good enough to produce around 12.5 GW solar modules annually, the management stated.
Work on SG-4 will commence in Q2/CY2022 and scheduled to be energized in Q3/FY2023. Another 550 TPD through SG-5 will be available in CY2024. However, the company is working out its financing for SG-4 which will be a mix of equity and debt. Financing for SG-5 will be decided later.
The expansion plans are built on the anticipated growth in demand with several companies announcing domestic manufacturing expansion in India. "In the case of module manufacturing capacity also all the large players who have announced their plan are quickly adding capacities and we expect a considerable volume of capacity to be added in next one-year time. So, there should be a significant increase in the activity of manufacturing and installation both," said Borosil Renewables Limited Whole Time Director, Ashok Jain.
The Executive Chairman of Borosil, PK Kheruka further added, "Even though 14 Gigawatts of solar module manufacturing capacity exists in India, actual production was about 5.5 GW during the financial year 2021. We see installed capacity rising to 50 GW of solar panels within the next three years. This will give a great boost to domestic production of solar equipment in India causing a major shift away from imports from China to sourcing from domestic manufacturers. Consequently, we expect increased demand for solar glass in India. We are in advanced discussion with many of these manufacturers who are all looking to have a local source of supply for solar glass."
Borosil also sees growing demand for solar glass in the markets of the US, Europe and Turkey.
During the reporting quarter, the company increased its net sales by 20% YoY to INR 1.69 billion ($22.37 million). This was due to the average ex-factory price of tempered solar glass having grown to around INR 141.4 per sqm. per mm., up from INR 112.6 per sqm. per mm. a year back, and from INR 118.0 per sqm. per mm. in the preceding quarter.
Export sales, including to customers in Special Economic Zones (SEZ), grew to INR 446 million ($6.0 million), up from INR 366 million ($4.86 million) in the same period during previous year. It accounted for 26.5% of the company's turnover.
With this quarter, its net sales for 9M/FY2022 (period between April 2021 and December 2021), improved 51% annually with average ex-factory prices of tempered solar glass being INR 133 per sqm. per mm. Export sales accounted for 28.3% of the turnover.
Borosil's petition against Chinese tempered solar glass makers led to the Indian government imposing anti-dumping duties (ADD), which are coming to an end in July 2022. The Indian company has applied for an extension of the same saying 'because there is no change in the circumstance' as they 'continue to dump'.
According to its previously disclosed plans, the glass company was aiming to increase its solar glass production to 1,950 TPD by CY2024 (see Borosil Renewables: Over INR 5.02 Billion Revenue For FY21).
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