Borosil hits the roof after DGTR initiates sunset review investigation for imports of 'Opal Glassware'

Borosil hit an upper circuit of 20% at Rs 241.35 after the Directorate General of Trade Remedies (DGTR) initiated the sunset review investigation concerning imports of "Opal Glassware" originating in or exported from China PR and UAE.

On the BSE, 1.42 lakh shares of the company were traded in the counter so far as against an average trading volume of 0.11 lakh shares in the past two weeks.

On the NSE, over 26.22 lakh shares of the company changed hands in the counter as compared with an average trading volume of 1.60 lakh shares in the past three weeks.

Borosil (the applicant) had alleged that dumping of "Opal Glassware" (subject goods) from China PR and UAE (subject countries) has continued even after the imposition of anti-dumping duty and that there is likelihood of continuatior/recurrence of the dumping and the injury in case of cessation of the duties. The applicant has requested for extension of the duties on the imports of the subject goods, originating in or exported from the subject countries.

An anti-dumping duty is valid for a period of five years from the date of imposition, unless revoked earlier. It can be extended for a further period of five years through a sunset or expiry review investigation conducted in accordance with Article 11.3 of the World Trade Organisation (WTO) Anti-dumping Agreement: such a review can be initiated suo moto or on the basis of a duly substantiated request received from or on behalf of the domestic industry.

A sunset or expiry review must be initiated before termination of the anti-dumping duty to determine whether the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury. If the investigating authority concludes that expiry of the duty is likely to lead to continuation or recurrence of dumping and injury, it may extend the duty for a further period of five years. The existing duties will expire on 8 August 2022.

The applicant has provided the relevant information in the petition. The petition has been examined for sufficiency of the information and the evidence of the dumping and the consequent injury to justify initiation of investigation.

Since the petition is duly documented and contains sufficient prima facie evidence of likelihood of the dumping and the injury if the existing duty is allowed to expire, the Authority initiates the sunset review investigation of the anti-dumping duty already imposed on the imports of the subject goods originating and exported from the subject countries, DGTR said in a statement.

Borosil is a supplier of laboratory glassware, microwaveable kitchenware and opal ware in India. It sells and markets microwavable and flameproof kitchenware and glass tumblers through more than 15,000 retail outlets, and has three manufacturing facilities. The company conducts its operations in two business segmentsnamely, scientific & industrial products and consumer products.

The company reported a consolidated net loss of Rs 2.36 crore in Q1 FY22 as against a net loss of Rs 7.53 crore in Q1 FY21. Net sales during the quarter surged to Rs 137.88 crore in the quarter ended June 2021 as against Rs 56.10 crore during the previous quarter ended June 2020.

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