The Economic Challenges of Borosil Renewables in Europe: Battling Competition from Chinese Imports

Introduction

Borosil Renewables Ltd., India's premier solar glass manufacturer, has experienced significant growth in its domestic market. However, its expansion into European markets has been met with challenges, primarily due to intense competition from low-cost Chinese imports. This article delves into the economic hurdles faced by Borosil Renewables in Europe, the impact of Chinese imports, and potential strategies for recovery.

Borosil Renewables: A Leader in Solar Glass Manufacturing

Establishing a Strong Domestic Presence

Founded in 1962, Borosil Renewables Ltd. is part of the Borosil Group and is recognized as India's first and only solar glass manufacturer. The company has played a pivotal role in supporting India's renewable energy goals by providing high-quality solar glass locally, reducing dependence on imports. Borosil's commitment to innovation and sustainability has solidified its position in the domestic market.

Expansion into European Markets

.

In pursuit of growth, Borosil Renewables expanded its operations into Europe, targeting

countries with ambitious renewable energy targets such as Germany, France, and the Netherlands. The European Union's emphasis on sustainability and renewable energy presented an opportunity for Borosil to introduce its premium solar glass products. The acquisition of an 86% stake in Interfloat Group, Europe's largest solar glass manufacturer, in 2022, further strengthened Borosil's presence in the European market .

The Rise of Chinese Imports: A Competitive Threat

China's Dominance in Solar Glass Production

China's ascendancy in solar panel and solar glass production is a significant factor influencing global markets. With government subsidies, economies of scale, and aggressive export strategies, Chinese manufacturers supply nearly 80% of the world's photovoltaic materials . This dominance allows Chinese exporters to offer solar glass at prices substantially lower than their competitors.

Impact on Borosil Renewables

The influx of inexpensive Chinese solar glass into European markets has created a

challenging environment for Borosil Renewables. Despite offering high-quality, durable, and sustainable products, Borosil's premium pricing makes it less attractive to cost-conscious European buyers. The company's revenue from exports to Europe declined by 68% year-on-year in the third quarter of FY 2025, attributed to reduced demand and increased competition from cheaper imports .

Financial Strain and Operational Adjustments

Declining Profitability

The financial strain on Borosil Renewables is evident in its recent performance. In Q3 FY 2025, the company reported a net loss of ₹300.7 million ($3.46 million), a significant increase from the ₹158.9 million ($1.83 million) loss in the same quarter the previous year. This downturn was primarily due to a reduction in average selling prices of solar glass, from ₹113 ($1.3)/mm to ₹108 ($1.2)/mm, driven by price cuts from Chinese exporters and lower ocean freight costs .

Operational Challenges in Europe

To mitigate losses, Borosil Renewables temporarily halted operations at its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH, in January 2025. The decision was based on low demand and falling prices, which rendered continued production unfeasible. The shutdown reduced monthly EBITDA losses from ₹80 million ($916,000) to ₹40 million ($458,000) .

Strategic Responses for Recovery

1. Advocacy for Fair Trade Policies

Borosil Renewables can engage with European policymakers to advocate for the imposition of anti-dumping duties on Chinese solar glass imports. Such measures could level the playing field, ensuring that European buyers consider quality and sustainability alongside cost. The company's efforts in India to initiate an anti-dumping probe into imports from China and Vietnam demonstrate its commitment to fair trade practices .

2. Emphasizing Sustainability and Product Quality

With increasing emphasis on environmental responsibility, Borosil can position itself as a leader in sustainable solar glass manufacturing. By highlighti

ng its low-carbon footprint, recyclability, and energy-efficient production methods, Borosil can attract environmentally conscious buyers in Europe who prioritize long-term value over upfront costs.

3. Strengthening Strategic Partnerships

Forming alliances with European solar panel manufacturers, renewable energy startups, and government-backed initiatives can help Borosil establish a more robust presence in Europe. Collaborations can lead to long-term contracts and supply agreements, providing stable revenue streams and reducing dependency on volatile market conditions.

4. Investing in Innovation and Technology

To differentiate itself from competitors, Borosil Renewables can invest in research and development to create advanced solar glass technologies. Developing ultra-thin, high-efficiency coatings, integrating self-cleaning glass, or offering customized solutions for European weather conditions could provide the company with a competitive edge in the market.

5. Leveraging Government Incentives

European governments offer subsidies and incentives for local companies involved in renewable energy projects. By establishing manufacturing facilities within Europe, Borosil may become eligible for financial support, helping offset operational costs and enhancing its competitiveness against low-cost imports.

Conclusion

Borosil Renewables faces significant economic challenges in Europe due to the influx of low-cost Chinese solar glass imports. However, by advocating for fair trade policies, emphasizing sustainability, strengthening strategic partnerships, investing in innovation, and leveraging government incentives, the company can navigate these challenges and position itself for recovery. The path forward requires strategic planning and adaptability to the evolving dynamics of the global solar glass market.