Shreevar Kheruka, vice chairman of Indian photovoltaic glass manufacturer Borosil Renewables, recently mentioned the impact of the anti-dumping clause exemption on imported photovoltaic glass on Indian photovoltaic module manufacturers in an exclusive interview with industry media. He also elaborated and discussed a number of other issues. The following is an excerpt from the interview.
Q: What are the implications of the exemption from the anti-dumping import clause for Borosil Renewable or other Indian PV glass manufacturers?
Kheruka: The Indian government's anti-dumping duty on PV glass imports from China was abolished about a year ago. Since the cancellation, sales of Chinese PV glass in India have increased significantly. Chinese PV glass now accounts for more than 80% of the Indian market. In my opinion, Borosil Renewables is more competitive, and our production costs are also competitive in the global market. However, we now have to compete with manufacturers who receive government subsidies, export subsidies, capital subsidies and operating expense subsidies, which prevent us from gaining an advantageous position, so we need a level playing field.
Q: Do you think the Indian government needs to change its policies to protect Indian PV ring glass manufacturers?
Kheruka: I would like to see some policy support for Indian PV ring glass manufacturers, because without government support, Indian PV glass manufacturers will not be able to expand their production capacity as planned. We've now shelved our expansion plans until we get some clear support. At present, the selling price of the products of Chinese photovoltaic glass companies is lower than the production cost of Indian photovoltaic glass manufacturers. Unless there is a level playing field, we will not be able to implement our expansion plans.
Q: How will you implement your expansion plans in the event of tariffs? Kheruka: After the implementation of the tariffs, we expanded the production of photovoltaic glass from 180 tons to 1,000 tons per day. In addition to us, five other PV glass manufacturers in India have announced capacity expansions during this period, three of which have already started production and two are building production plants. The implementation of tariffs has helped us invest more in this area. This is beneficial to the development of the photovoltaic glass industry in India. The PV glass industry is a highly capex-driven industry, with a capex-to-turnover ratio of less than 1. This means that for every Rs 100 of capital expenditure invested, we earn about Rs 85 per annum in operating income. Therefore, we need longer-term policy support, as the payback period for investment in PV glass production plants is at least seven years. We can only make a commitment to expansion if we have a policy guarantee.
Q: How is Borosil Renewable's export partnership developing in Europe?
Kheruka: Borosil Renewable recently acquired a German company that produces photovoltaic glass, the only manufacturer of photovoltaic glass in the European Union. We have invested in expanding capacity to around 350 tonnes per day, which means 2.5GW of PV modules will be produced per year. We acquired this company in order to increase our sales in the European market. Chinese manufacturers also sell photovoltaic products in Europe, and the European Parliament may take corresponding measures.
About 30% of our photovoltaic glass products are exported to other countries, which allows us to survive and grow. The prices of these products are more favorable compared to those sold in India, and we plan to increase our share of sales in the future.