The separation of consumer and solar business will help Borosil Glass Works focus on aggressive growth, said Shreevar Kheruka, managing director and CEO of the company.

The company has announced a scheme of arrangements, separating The two businesses. “The scheme results in two listed entities called Borosil Limited, which will have consumer and scientific products business and Borosil Renewables, which will have the solar glass business," said Kheruka.

This, according to Kheruka, will allow the shareholders to decide which company to buy.

Kheruka said that Borosil companies had a complicated shareholding structure with cross holdings among the companies and so it was decided to eliminate the cross holdings and related party transactions.

Elaborating on the scheme, Kheruka explained, "In Gujarat Borosil, which will become Borosil Renewables, we plan to add capacity by doubling solar furnace. In consumer business, we would focus on storage and tableware. Therefore, with separate entities and managements, each one can chart their own growth plans."

The entire scheme is likely to be executed in 12 months and post this, in both the companies, the promoter holding would reduce to 70.5 percent, said Kheruka.

Going forward, for consumer business, the company expects the compounded annual growth rate (CAGR) of around 20 percent and for the solar business, CAGR is expected to be around 12 percent, he added.

"Solar business is dependent on capacity and at the moment the utilisation is at 100 percent. Once the new furnace is added, they will be able to double the turnover," said the chief.

The EBITDA margin for the consumer business went up from 11.5 percent to 15 percent in FY18 and is expected to touch 20 percent in the next couple of years. For solar business, the EBITDA margin has been around 18 percent to 20 percent, which is likely to be 24 percent to 25 percent going forward, said Kheruka.

The stock has been up 17 percent, buzzing all through June.