Very interesting results indeed. So management has delivered what they were mentioning since last few quarters.
I was trying dig deeper into renewable glass space and would request @Marathondreams or anyone else on the forum to answer two of my longer term questions below:
- Product quality: Is there any kind of competitive or technical advantage which Borosil enjoys in India in terms technical know-how for solar glasses? Most importantly, does that help creates awareness about superiority of their product? I could assume if that’s not the case, most customers would be okay buying solar panel glass from just any other manufacturer. Since this is looking like a 25-30% EBITDA margin market (assuming GOI implements ADD on Malaysia/China imported solar glasses), I would think it might attract more manufacturers to enter Glass manufacturing market.
- Government’s approach - promoting increased use of cheaper solar electricity vs. prioritizing glass manufacturing in India: If GOI wants cheaper solar electricity availability in the country, isn’t it better to keep importing cheaper glass from China/Malaysia? There is no need to use costlier glass (Borosil’s glass is much expensive vs. Chinese imported glass) and make solar electricity more expensive, people won’t use expensive solar electricity anyway right? Longer term game could be for GOI to incentivize glass manufacturing in India which automatically would make India’s glass cheaper vs. Chinese glass (similar to what GOI is aiming to do with API manufacturing in India).
PS: Borosil Renewables can be a very good company to own in short to near term given the current environment of a self reliance push specially if the govt. introduces ADD on solar glasses from Malaysia and Chinese glass into SEZ’s. Longer term, I feel one needs to carefully consider their competitive advantages in the marketplace.