Borosil Seeks to Accelerate Science Division Product Exports

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

According to the COO of the SIP division, Vinayak M Patankar, exports currently account for almost 12-13% of the company’s total business and have increased by 20% year-on-year. The company aims to increase the share of exports to around 25-30% of its total turnover over the next four to five years.

Borosil Ltd has two divisions, Scientific Products and Consumer Products. As of March 31, 2021, the company’s total revenue stood at Rs 527 crore. According to information available in the company’s latest annual report, the scientific products business achieved sales of approximately Rs 200 crore in FY21, down less than one percent from exercise 20.

“We want to improve (our sales) in the American and European markets. Once we establish a presence in these markets, the growth will be much higher. Our products have been accepted in these markets, so it is only a matter of time. Over the next four to five years, we expect exports to represent nearly 25 to 30 percent of our revenue,” Patankar said. Activity area.

Borosil, which exported to nearly 20 countries in 2013, currently exports to 79 countries.

Good growth potential

Unlike the consumer products division, which has been impacted by the restrictions imposed and faced with the challenge of declining consumer confidence and reduced spending on consumer discretionary items due to Covid-19, the products division Business scientists rebounded quickly (being classified as essential goods). The demand for science-based products, especially for pharmaceutical packaging, has seen a surge.

The division has identified three new growth pillars, including benchtop instruments under the LabQuest brand, primary packaging glass vials and ampoules for the pharmaceutical industry under the Klasspack brand, and establishing export markets for laboratory glassware. Borosil acquired Nashik-based Klasspack in 2016. Over the past four to five years, the company has seen “significant growth” and recorded a CAGR of 25%.

While there has been growth in sales in the pharmaceutical sector, sales to two of the other sectors served by Borosil, namely government research laboratories and educational institutions, suffered a decline due to the lack of funding and remained closed during the shutdowns, according to the report.

The pharmaceutical packaging business of glass vials and ampoules under Klasspack achieved a healthy growth of 33%.

“In 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 been for trials. In FY22, with more Covid vaccine manufacturers entering commercial production, we expect to be called upon to fulfill larger orders. Klasspack vials are in the approval process with a number of vaccine manufacturers in India and abroad. In FY21, Klasspack’s growth was also driven by meeting drug requirements such as Remdesivir, Voveran, Betnosol, Dexona, Neurobion and many others,” the report states.

Published on

March 13, 2022

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