CHENNAI: Shares of Borosil Renewables Ltd., jumped 4.30% to Rs 518.50 a unit on Monday (July 7) at 10.56 AM, following the announcement that its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH, has filed for insolvency in a German court.
The move follows months of operational challenges. GMB had cooled down its furnaces in January 2025 due to poor demand and deteriorating market conditions across the European Union. A key reason cited for the slump was Chinese manufacturers dumping solar panels and solar glass at cheaper prices, significantly impacting demand for German-made products. Despite efforts to seek assistance from authorities, no measures were introduced, forcing GMB to seek legal insolvency protection.
Impact on Borosil Renewables
Borosil Renewables’ total exposure to its German unit and step-down subsidiaries stands at approximately ₹340–350 crore. The company had been incurring a monthly cash loss of around ₹9 crore due to the underperforming German operations. With the insolvency proceedings now initiated, these monthly losses will cease, which is expected to offer immediate financial relief to the parent company.
Strategic refocus on Indian operations
The company is now shifting its strategic focus to its Indian operations, where demand for solar glass remains robust. Borosil Renewables is investing heavily in its domestic manufacturing capacities, including a proposed ₹675–700 crore expansion project in Bharuch, Gujarat. The company plans to scale up capacity to meet the anticipated surge in domestic solar module production, which is projected to grow significantly in the next two years.
Favorable policy measures, such as import duties on Chinese solar glass and government support for local solar manufacturing, are expected to benefit Borosil’s India-centric strategy.
Stock and investor outlook
While the market may initially react cautiously to the news of insolvency, analysts view this move as a positive development in the long term. By cutting losses and reallocating resources to growth-ready segments in India, Borosil Renewables is expected to emerge financially stronger and more competitive.
The company's decision to exit its struggling German unit marks a strategic pivot toward India’s fast-growing solar market. This development, while operationally significant, may prove financially beneficial in the long run, as the company doubles down on markets with stronger demand and policy support.