With two acquisitions, Borosil targets 40% growth

After making two successive acquisitions this year, Borosil Glass Works is planning to grow at 40 per cent this fiscal, targeting a turnover of ₹560 crore.

Having set aside a budget of ₹150 crore for acquisitions, the specialty glass company is now entering new areas such as glass ampoules and tubular glass vial production to cater to packaging needs of pharma companies.

Shreevar Kheruka, Managing Director, Borosil Glass Works, told BusinessLine that “We are seeking consolidated growth at 40 per cent on the back of our two acquisitions made this year. We have almost exhausted our acquisition budget of ₹150 crore which we have garnered through internal accruals.’’

Early this year, Borosil acquired Hope Ware table ware for ₹90 crore and made an entry into the serving segment for glassware such as plates and saucers.

This month it made another acquisition by picking up 60.3 per cent stake in Klasspack, a Nasik-based company, for less than ₹100 crore.

“We already make lab glasses under our scientific products division and with the latest acquisition, we would be entering new segments like ampoules and vials,’’ added Kheruka.

In fact, Borosil is already the market leader for lab glasses and its latest acquisition is expected to strengthen its position in the pharma industry.

Borosil Glassworks has two broad divisions under Scientific Products and Consumer Products.

It also makes solar glasses under its group company Gujarat Borosil. Scientific Products contribute 30 per cent of the company’s turnover.

Last year it made an entry into the kitchen appliances business under its consumer products division.

“There are negligible sales for kitchen appliances at present but consumer products contribute 35 per cent of the turnover today,’’ he added.

In fact, of late, Borosil has been trying to become a consumer focused company through its entry into new segments like table ware and kitchen appliances.

“These are fragmented segments but we want to make a mark in the mass consumer segment. There are plans to increase our distribution by 20 per cent to add to the 10,000 retail outlets that we already reach out to,’’ he added.

Under its consumer division, Borosil also has products such as oven glasses and storage containers.

Apart from its glass making manufacturing facilities in places such as Jaipur, Tarapur, Nasik and Baruch, Borosil also imports and out sources segments like kitchen appliances.

“We have been acquiring domestic companies but are open to acquiring international companies as the purpose is to drive profitable growth for the company,’’ he added.