Kolkata, March 13 Borosil Ltd is looking to ramp up exports of products, including laboratory glassware and pharmaceutical primary packaging items, under its scientific products division, primarily in the US and European markets.

According to Chief Operating Officer, SIP division, Vinayak M Patankar, exports currently account for nearly 12-13 per cent of the company’s total business and has been growing at 20 per cent on a year-on-year basis. The company is looking to increase the share of exports to around 25-30 per cent of its total turnover in the next four-to-five years.

Borosil Ltd has two divisions, scientific and consumer products. As on March 31, 2021, the company’s consolidated turnover stood at Rs 585 crore. According to information available in the company’s latest annual report, the scientific products business achieved sales of around Rs 200 crore in FY-21, down by less than one per cent over FY20.

“We want to improve (our sales) in the US and European markets. Once we establish a presence in these markets, growth will be much higher. Our products have been accepted in these markets, so it is only a question of time. In the next four-to-five years, we expect exports to account for nearly 25-30 per cent of our turnover,” Patankar told BusinessLine.    

Borosil, which was exporting to close to 20 countries in 2013, currently exports to 79 countries.

Good potential for growth

Unlike the consumer products division, which was impacted by restrictions imposed and faced the challenge of lower consumer confidence and curtailed spends on items of discretionary consumption due to Covid-19, the company’s scientific products division bounced back quickly (being categorised under essential goods). The demand for scientific products, particularly for pharmaceutical packaging, saw a steep jump.

The division has identified three new pillars of growth, including bench top instruments under the brand LabQuest, primary packaging glass vials and ampoules for the pharmaceutical industry under the brand Klasspack, and establishing export markets for laboratory glassware. Borosil acquired Nashik-based Klasspack in 2016. In the last four-to-five years the company has witnessed “extensive growth” and has been registering a CAGR of 25 per cent.

While there was sales growth in the pharmaceuticals sector, sales to two of the other sectors serviced by Borosil, namely government research laboratories and educational institutions, suffered a decline owing to paucity of funding and remaining shut during the lockdowns, the report said.

The pharma packaging business of glass vials and ampoules under Klasspack has achieved healthy growth of 33 per cent.

“During the course of FY21, we received limited orders for vials for the Covid-19 vaccine. Our vials have been approved for use by a number of vaccine manufacturers. However, our orders so far have pertained to trial runs. During FY22, with more Covid vaccine manufacturers going into commercial production, we expect to be called upon to service larger orders. The Klasspack vials are under the approval process with a number of vaccine manufacturers in India and overseas. During FY21, the growth in Klasspack was also driven by fulfilling requirements for drugs such as Remdesivir, Voveran, Betnosol, Dexona, Neurobion and many more,” the report said.