Borosil Renewables’ German Unit Geosphere Glassworks Files For Insolvency

Indian solar glass manufacturer Borosil Renewables said on Tuesday that its wholly owned German subsidiary, Geosphere Glassworks GmbH, has filed an application to commence voluntary insolvency proceedings in Germany. The company cited a dearth of resources to meet a subsidy-related claim.

In a regulatory filing, the Indian solar glass manufacturer said the managing director of Geosphere filed the insolvency application on Dec. 22 before the insolvency court in Cottbus, Germany.

Why was it set up?

Geosphere is a non-operating entity that was set up as a special purpose vehicle to acquire and hold a majority stake in GMB Glasmanufaktur Brandenburg GmbH (GMB), a step-down subsidiary of Borosil Renewables. GMB, once Europe’s largest solar glass producer, has been undergoing insolvency proceedings since July 2025 amid weak market conditions in the region. This came to the fore when the company, dismayed by the alleged dumping of ultra-cheap Chinese solar glass in Europe, made the viability of the firm a tough call. 

The company said a German government-owned bank had earlier extended a capital subsidy of 4.81 million euros to GMB, subject to certain conditions, including an assurance from Geosphere to support GMB’s capital expenditure and operations. However, following GMB’s insolvency and shutdown of production, some conditions of the subsidy—such as continuation of operations for a specified period—could not be met.

Lack of European Union Support 

As a result, the German bank sought recovery of the subsidy amount from Geosphere, alleging non-compliance with the grant conditions. Borosil Renewables said Geosphere informed the bank that GMB’s shutdown stemmed from a lack of policy support from the European Union and the German federal government for solar PV manufacturing, and that it had sought insolvency protection due to insufficient resources to meet the subsidy claim.

Borosil Renewables said its total exposure to Geosphere, amounting to Rs 130.03 crore in the form of investments and loans including interest, had already been fully provided for and disclosed as an exceptional item in its financial results for the quarter ended June 30, 2025.

“The aforesaid insolvency has no material impact on the company,” Borosil Renewables said.