BOROSIL RENEWABLES LIMITED has informed the Exchange about filing of an application for commencement of insolvency resolution process of GMB Glasmanufaktur Brandenburg GmbH, Material Step-Down Subsidiary of Borosil Renewables Limited
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Awaiting price reaction for this filing.
Borosil Renewables' German step-down subsidiary GMB has filed for insolvency at the Cottbus insolvency court in Germany on July 4, 2025, citing weak demand and liquidity issues. GMB contributed Rs 326.77 crore in revenue (22.09% of consolidated turnover) but only 2.76% of consolidated net worth as of March 31, 2025. The subsidiary has been hit hard by Chinese dumping of solar panels in Europe, leading to a furnace shutdown in December 2024 that never restarted. Borosil's total exposure in the German entities stands at EUR 35.30 million, and the company was spending Rs 9 crore per month on standing charges. After the insolvency filing, Borosil will stop booking GMB's losses, immediately removing the monthly cash burn drag. Management plans to redirect capital and focus to its Indian operations, where it sees stronger long-term potential.
Short-term negative due to potential write-offs tied to the EUR 35.30 million exposure, but the decision stops a Rs 9 crore/month cash leak and allows Borosil to concentrate on its Indian business, which may be viewed as a rational, loss-limiting move by long-term investors.