Indian glassware major Borosil gained nearly 2 percent in morning trade on Tuesday as the company announced that it has begun commercial production from the second furnace at its plant in Jaipur, Rajasthan. The facility manufactures opal ware glass with a capacity of 42 tonne per day (TPD), the company said in a filing to the exchanges on Monday.

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On December 20, 2022, the company started trial production at the Jaipur plant.

Borosil's 3-month chart is still in the red after this recovery.

Borosil has set up the new plant as part of its ongoing Rs 625 crore expansion plan being implemented till 2024. The company has been developing and widening its consumer and scientific product range. The expansion plan includes an investment of Rs 450 crore in setting up of borosilicate furnaces for pressware and a second opalware furnace in its consumer business.

Further, it’s investing Rs 175 crore in the manufacturing facility of glass tubing, which is used in scientific products like beakers, test tubes, and drinking glasses, among others.

The company’s expansion plan is aimed at cutting down costs, which had impacted its bottom line leading to a hike in the prices of its products across categories. Borosil is also in the process of overhauling its front and back-end technology platform over three years at an investment of Rs 30 crore.

Shares of Borosil Ltd were trading 1.76 percent higher at Rs 514 apiece on BSE at 11.32 am on Tuesday.

First Published:Jan 3, 2023 2:04 PM IST