Borosil Renewables Ltd. experienced a 3% surge in its share price on Tuesday following the company's board approval of a revised project cost for its significant capacity expansion. The expansion, located in Bharuch, Gujarat, will now entail an investment of up to ₹1,100 crore, an increase from the earlier estimate of ₹950 crore.
The company's board, at its meeting held on September 22, 2026, took note of the Viksit Gujarat Industrial Policy 2026. This policy positions Borosil Renewables to apply for various financial incentives, including interest subsidies, power tariff subsidies, capital subsidies, and EPF reimbursements, which are expected to support the ambitious project.
Capacity Boost and Project Timeline
The expansion plan focuses on establishing two new furnaces, designated SG-4 and SG-5, each designed to contribute 300 TPD (tonnes per day) to the company's manufacturing capabilities. Borosil Renewables currently operates at a fully utilized installed capacity of 1,000 TPD. Once the new furnaces become operational, the total capacity is projected to reach 1,600 TPD, significantly boosting production volumes and sales potential.
Originally slated for completion by December 2026, the commissioning timeline for the project has now been extended to the end of March 2027. This adjustment reflects various challenges faced by the company.
Reasons for Cost Increase and Delay
Borosil Renewables attributed the revised project cost and delayed timeline to several external factors. The ongoing conflict in the Middle East has notably disrupted global supply chains, leading to increased commodity costs and exchange-rate fluctuations. Additionally, the company indicated that the overall scope of the project has been expanded, contributing to the higher investment.
Despite the increased outlay of ₹150 crore, the company has assured stakeholders that this additional cost will be entirely funded through internal accruals, without necessitating any increase in borrowings. The broader project financing may involve a mix of equity, debt, and internal accruals, as determined by the management.