Borosil Renewables Raises Furnace Project Cost to INR 1,100 Cr

Borosil Renewables has revised the estimated cost of its 600 TPD furnace expansion project in Bharuch, Gujarat, to INR 1,100 crore from INR 950 crore, with commissioning now expected by end-March 2027.

The company’s Board approved the revised project cost and commissioning timeline at its meeting. The expansion involves setting up two 300 TPD furnaces, SG-4 and SG-5, which will increase Borosil Renewables’ total installed capacity from 1,000 TPD to 1,600 TPD.

The project was originally scheduled for completion by December 2026. The company attributed the delay to the ongoing Middle East conflict, which it said has disrupted supply chains, caused exchange-rate fluctuations and increased commodity costs.

The scope of the project has also been expanded, resulting in an additional cost outlay of INR 50 crore. Borosil Renewables said this additional expenditure will be entirely funded through internal funds without any increase in borrowings.

The original investment envisaged for the 600 TPD expansion was Rs. 950 crore, while the revised estimated investment is approximately INR  1,100 crore.

The company said the project may be financed through a mix of equity, debt and/or internal accruals, as considered appropriate by the management. The revised estimate is based on current projections and may vary depending on circumstances. Once operational, the capacity expansion is expected to increase production volumes and sales.

The Board also took note of the Viksit Gujarat Industrial Policy 2026, notified by the Government of Gujarat. Under the policy, Borosil Renewables would be eligible to apply for various financial incentives, including interest subsidy, power tariff subsidy, capital subsidy and EPF reimbursement.