Borosil Ltd

NSE:BOROLTD

Earnings Call Transcript 2025-Q1

[Operator]

Ladies and gentlemen, good day, and welcome to Borosil Limited Q1 FY '25 Conference Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Nilesh Patil. Thank you, and over to you, sir.

[Nilesh Patil, analyst]

Thanks, Sumit. On behalf of ICICI Securities, we welcome you all to Q1 FY '25 Results Conference Call of Borosil Limited. We have with us Mr. Shreevar Kheruka, MD and CEO; Mr. Rajesh Kumar Chaudhary, Whole-Time Director; Mr. Anand Sultania, CFO; Mr. Rituraj Sharma, President-Consumer Products; and Mr. Balesh Talapady, Vice President, Investor Relations and Business Analysis. Now I hand over the call to management team for their initial comments on quarterly performance, and then we will open the floor for question-and-answer session. Thanks, and over to you, sir.

[Shreevar Kheruka, executive]

So thank you, Nilesh, and ICICI Securities, for arranging this call. Good evening to every one of you. The Borosil team is delighted to be communicating with you once again. I'm pleased to inform you that Borosil Limited's Board of Directors has approved the financial results for Q1 FY '25 during our meeting today. We have submitted our results and an updated presentation to the stock exchanges, and they are also available on our company's website for you all to review. During the quarter ended June 30, 2024, the company raised INR 150 crores by way of QIP and allotted 47,16,981 equity shares of face value INR 1 each to the eligible, qualified distributional buyer at an issue price of INR 318 per share, which includes a premium of INR 317 per share. This is on June 25 of this year. The issue was made in accordance with Securities and Exchange Board of India Regulations, 2018. The objects of the issue was repayment or prepayment of long-term project loans and short-term working capital loans availed by the company and Genral corporate purposes. Out of the net proceeds that have been issued during the quarter, the company has utilized INR 60 crores towards the repayment of working capital loans and the balance amounts are invested in highest credit quality short-term money market instruments. The proportion is of deployment of net issue proceeds in the financial year, '24, '25, that is this year. We are delighted to report that Borosil Limited delivered a strong performance in Q1 FY '25. Our revenue from operations for this year reached -- for the first quarter this year reached INR 216.8 crores compared to INR 176.1 crores in the same quarter of the previous year. This represents an impressive year-on-year growth of 23.2%, which is among the highest in the industry and a testament to our business strategy, operational excellence and the continued trust and loyalty of our customers. This growth highlights our ability to effectively navigate challenges and capitalize on opportunities, reinforcing Borosil's position as a key player in this industry. During Q1 FY '25, the company achieved an operating EBITDA before investment income of INR 34.6 crores as against INR 23.9 crores during the same period last year. The operating EBITDA margin was 16% in Q1 FY '25 as against 13.6% in the same period previous year. Here, I would like to mention that the other income includes INR 4.2 crores of shared service support income, the underlying expenses of which are reported under total expenses. Profit before tax during Q1 FY '25 for the INR 12.9 crores as against INR 7.2 crores in Q1 FY '24. The investment income is higher by about INR 5.0 crores during Q1 FY '25 as compared to the same period last year, whereas depreciation and finance costs are also higher by about INR 9.9 crores, primarily due to the new boost in glass furnace commissioned during Q4 FY '24. During Q1 FY '25, Borosil recorded a profit after tax of INR 9.3 crores as against to INR 5.0 crores during the same period last year. As on 30th June 2024, the company had a net debt of INR 57.8 crores.

Let's now discuss our category-wise performance for Q1 FY '25. Borosil's consumer division continues to encompass both glassware and non-glassware products under the Borosil brand alongside the Opalware range under the Larah brand. The Larah opalware segment known for its modern design and superior quality. It reported interest impressive sales of INR 76.1 crores in Q1 FY '25. That is an increase of about 15%, when compared to INR 66.2 crores that we achieved in the same quarter last year. In our glassware segment, which includes borosilicate microwavables serving ware, lunch boxes, glass tumblers and glass storage solutions, we observed a remarkable year-over-year growth of 42.2%, with revenues reaching INR 55.7 crores compared to INR 39.2 crores in the same period last year.

Additionally, our non-glassware segment, which features a range of small home appliances, hydra range insulated bottles and flasks, cookware and other kitchen essentials recorded a good revenue growth of 20.3%, achieving a turnover of INR 85.1 crores in Q1 FY '25, up from INR 70.7 crores in the same quarter of the previous year. This exceptional overall performance underscored the effective implementation of our strategy to broaden the Borosil brands portfolio, aligning perfectly with a diverse culinary and serving requirements of the Indian household. It also reaffirms in the upswing strength and widespread appeal of the Borosil and Larah brand across multiple product categories. Larah, one of our flagship brands under the Borosil brand has shown a good, good trajectory since its acquisition in 2016. The remarkable success story is a testament to our strategic vision, operational efficiency and commitment to customer satisfaction. Larah sales have grown at a CAGR of 22% climbing from INR 87 crores in FY '16, '17 to an impressive INR 358 crores in FY '23 '24. These numbers are for the full year on good [ deals. ] This significant growth proves the effectiveness of our acquisition and transformation strategy, where we revitalized the Larah brand image along with its operations, and realign market positioning to tap into new opportunities. Similarly, our non-glassware segment as I already mentioned about have emerged at a remarkable growth engine for Borosil, demonstrating a robust expansion over the years. With a CAGR of 50%, non-glassware sales have skyrocketed from INR 23 crores in FY '16, '17 to an impressive INR 387 crores in FY '23, '24. This significant achievement and this shows our strategic focus on diversifying our product portfolio and meeting the evolving needs of our consumers. Over the recent years, Borosil's consumer business has evolved beyond it's original focus on glass products, establishing 3 strong pillars: glassware, non-glassware and opalware, as is now integral to our sustainable growth strategy. Each of these divisions has grown substantially and is well positioned for further expansion as market adoption and usage frequency continues to rise. Here, I would like to add that our positioning is to replace plastic in the kitchen as well as steel products in many parts of the kitchen, although we do have steel in our portfolio, or we believe that glass is ideally suited for some attribution and steel for others. And we find that consumers are buying into these thesis, and they were representing higher growth across our 3 segments. Our new product lines, including the Borosil artisan series, borosilicate jars and containers, coffee mix, air fryers and gas stoves have resonated strongly with consumers. Similarly introduction of fresh designs in opalware as well as new products such as Opalware lunch boxes, storage sets and kulhud mugs have garnered considerable popularity further reinforcing our market presence. At present, our main objective is to further broaden our reach. We are dedicated to transitioning customers from plastic and melamine to glass storage and opalware, which also encourages -- while also encouraging greater use of microwavable products. To appeal to our customers' diverse needs, we continuously introduce new items such as portable high-grade steel products and home appliances. Our ultimate goal is to position Borosil Larah as a preferred brand in modern indications for all storage, preparation, cooking, heating and serving needs. We are very confident in the medium-term outlook of our consumer business, while we may encounter phases of slow growth and cautious consumer sentiment, which are typical of any market cycle. We remain optimistic about the long-term growth potential. Our strategy is centered on broadening our consumer reach through precise targeted initiatives, introducing cutting-edge products that align with the shifting needs of our consumers and streamlining our supply chain and marketing efforts for maximum impact. Thank you for hearing opening remarks. With this, I'd like to throw the floor over to questions.

[Operator]

[Operator Instructions] The first question is on the line of Dhaval Shah from Girik Capital.

[Dhaval Shah, analyst]

I have a couple of questions. So first, to start with, the BIS implementation for appliances happening from 1st of September. And we import a lot of our appliances. So the way we maintain an inventory for our Hydra range, please give your comments regarding the strategy for the appliances. And how is the industry also positioning itself, given a lot of companies in India are also operating on a similar model like [indiscernible]. So that's my first question. Second would be, after the successful QIP, how will the finance cost be for us for the next 2, 3 quarters? How would that change in the P&L? These are my 2 questions.

[Shreevar Kheruka, executive]

So maybe I'd let Rituraj answer the BIS question and Anand to answer the finance question.

[Operator]

Sir, Rituraj is not on the line.

[Shreevar Kheruka, executive]

Okay. Okay, no problem. I'll take the BIS question then. So look, as far as the BIS answer is concerned, he has -- sorry, we are -- we have -- obviously, there's 2 parts of the strategy. One is to make sure that the business is not disrupted in the short term. And second is to make sure that our long-term growth is protected. So as far as the short term is concerned, what we end up doing is adding to inventory, and we are able to make sure that we get enough time to develop vendors in the meantime. So as far as the appliance is concerned, you're right that in many appliances, we are that BIS has been implemented also with Hydra for that matter. What we have done is, a, we added to inventory, substantial inventory of almost 9 months to almost a year of sales in advance so that we -- at least protect our sales in that period. And secondly, parallelly, we stared working on new supplier development, which we have successfully done. And by the way, BIS is not something new for us. We have been looking more and more products -- have been coming out of the BIS umbrella over the last few years. And you've seen that in many appliances already, and we have successfully switched from imports to local sourcing as the ecosystem has developed. So we are fully supportive of BIS and we are fully -- we fully believe that this is going to help the Indian with the manufacturing ecosystem, and we manufacture ourself, we see this as an opportunity in the future. But I think this is the short risk mitigation strategy of short-term higher inventory and then longer-term domestic sourcing, which we are actively following. I believe we should be able to mitigate this risk.

[Dhaval Shah, analyst]

So in terms of the cost structure of a Chinese supplier, Chinese spenders versus available in Indian vendor ecosystem. One is the technical know-how and the absolute cost structure. Do you think both can be managed or you will have some headwinds in the near time, till the time the Indian vendors developed scale, like we saw in case of mobile phones. I mean, the similar kind of large-scale vendor system is yet developed for appliances in India. So how do you see that?

[Shreevar Kheruka, executive]

So look, it is developing. China developed this over 20 years. So probably it will take us 5, 7 years to develop that ecosystem. In the meantime, I mean -- it's not that -- the journey has started 2, 3 years ago when the first clients have started coming under the BIS umbrella. So yes, it will take time and the competence of the machine vendors will upgrade over a period of time. As far as -- so -- but I believe that whatever we are already sourcing locally is more than good quality and is up to the standard of Borosil brand. And if you have not seen any increase in our, let's say, aftersales complaints when you have switched any appliance from imports to domestic. And that's, I guess, a testament to our team because our team is working very closely with the vendors. We basically sit in their factories and ensure that whatever specs that we have identified for our products in terms of inputs are being followed [indiscernible] done. And as far as pricing is concerned, I believe that this is impacting everybody. So general pricing may go up a little bit. Obviously, China has some scale benefits -- they have built over 20 years. It will take time for us to reach that. So the pricing will definitely be higher. I don't believe it will impact margins as it's only -- this is an industry-wide phenomenon, it has nothing to do with us specifically. So probably everybody will have to increase their prices a little bit. There may be some -- as the margin from demand disruption, which may happen in the short run, which may lead because of the higher prices of all products. But I don't see this as a big challenge on either front going forward. Finance cost concerned, I don't know, Anand or Rajesh, anyone of you can answer this.

[Anand Sultania, executive]

Yes, Dhaval. So the final cost for the fourth quarter has been about INR 4.4 crores. And we believe for the full year, it will be close to INR 10 crores.

[Dhaval Shah, analyst]

Okay. And so now after using this QIP receipts for debt repayment, how will be the balance sheet be in terms of debt and cash?

[Anand Sultania, executive]

Borosil balance sheet will be, overall, the net debt will be 0 and will be some surplus.

[Dhaval Shah, analyst]

Okay. And I believe a lot of our capital will be blocked in the inventory, right? Which will also get released over next 6 months because of these -- the imports that we have done?

[Anand Sultania, executive]

So we have already built some extra inventory because of the BIS saving, which we spoke in the last quarter. So all of that inventory probably will get liquidated in this year.

[Dhaval Shah, analyst]

Okay. Okay. And if you can also give the operating cash flow number for the quarter?

[Anand Sultania, executive]

We normally don't share that on the quarterly basis.

[Operator]

The next question is from the line of Pranay Roop Chatterjee from Burman Capital Management Private Limited.

[Pranay Roop Chatterjee, analyst]

My question is related to the consumer glass segment. In the first quarter, in terms of production volume percentage of installed capacity, how much utilization would the furnace have reached in Q1? And how much of the production was sold versus being built up in inventory? Like were you able to sell everything you produced for these last months?

[Shreevar Kheruka, executive]

Okay. So I think the furnace itself is operating at about 70-odd percent, 70% to 70-odd percent of its capacity. And of that, we are selling [indiscernible]. So we are roughly 50%. So we've built up about -- it's over 20% of inventory, which is all built for Diwali. But the furnace itself -- always -- it takes time to scale up the production to the 100% number, which hopefully, we should achieve by the end of the year. But yes, that's the answer for you.

[Pranay Roop Chatterjee, analyst]

Got it. And when you say 100%, this 70% to 100%, that takes into account the maximum efficiency one can derive out of the furnace?

[Anand Sultania, executive]

That's right. That's right.

[Pranay Roop Chatterjee, analyst]

Okay. Got it. So I think you had guided that you would utilize fully by next year. So -- then sort of assuming that you have brought it forward to this year for declaration?

[Shreevar Kheruka, executive]

I think it will be challenging. I think you should slip stick to next year because it's early days, and consumer demand across the board has been challenging. And as you can see from the results of many consumer product companies. So I don't want to say something. It's rather under promise over here and over the...

[Pranay Roop Chatterjee, analyst]

Got it. Next is on the margins. And specific to -- I know you don't disclose this, so I won't ask for a specific number for the consumer glassware segment. So if you look at the Y-o-Y terms, last year, same quarter, it was mainly importing and then you were selling it. This year, it is -- I'm assuming it's mostly out of your furnace. The glassware portion at least. So how do you see the margin swing Y-o-Y?

[Shreevar Kheruka, executive]

The margins -- so look, there was some overlap even in this year because we had some, let's say, imported products, which are on the key for basis that sold out first. Because you've never been in data production, you never know when the glass actually is -- when you'll get good quality, so you can't afford to comprise sales. So there's definitely some amount of older inventory, which is imported being sold through systems, which may -- I think it should be more or less through by June, July. But effectively, I think the margins look good. I think they're better than what we had anticipated overall. And I believe, again, it's too early to say much because we need to achieve the full commence utilization. But it seems that the investment will have a very healthy, say, ROI. But I don't want to talk too much about it until a few more quarters pass and we see the sustainability of the sales number -- the sales quantity as well as the sale price.

[Pranay Roop Chatterjee, analyst]

That makes sense. So the EBITDA should basically be higher because you're putting the CapEx and then the depreciation and interest comes in. So if you look at it from a PBT point of view, qualitatively, -- qualitatively my sense is from based on what you're saying, you're expecting improvement in the PBT margin for the [indiscernible]?

[Shreevar Kheruka, executive]

Of course. Of course.

[Pranay Roop Chatterjee, analyst]

Got it. Sir, and my last question would be basically on your outlook for FY '25. If you could just comment on the 3 segments from a revenue point of view, how do you expect? Any change in your view versus the start of the year and overall margins where you see them heading this year?

[Shreevar Kheruka, executive]

I would not like to comment specifically on any year. I can just say that our overall 15% to 20% kind of growth trajectory should be maintained. I'm very confident about that. Hopefully, we have a surprise on the upside in the shorter term. But -- and margins also, last year, I think we did 14%, 15% EBITDA margin that this should be trending upwards and in the next 3 to 4 years as we achieve a higher mix of our own production in terms of our revenue mix. And as we achieve more operating leverage on marketing and manpower costs, I believe that margins will tend closer to the low 20s. Now when that happens in the -- which financial year, you will see that pop, whether it will be -- it will in linear, it's very hard to say. And obviously, the whole thing is subject predicated on market demand environment. So I can say that 3, 4 years is where we will be, but whether that will happen, which year we'll see that thing really kick in, it's very difficult. And the markets have been a bit challenging. I mean, overall, like I said before, you can have a look at other consumer product companies, and there has been a challenging quarter for everybody across all categories. So obviously, we need the market to support us to achieve these numbers.

[Pranay Roop Chatterjee, analyst]

Got it. And just last data question. Pressware as to non-pressware. Should we still assume it's 50-50 in this quarter or Pressware would have increased in share?

[Anand Sultania, executive]

No. It will start increasing. So it will probably be 60-40 or 55-45. But I don't have that -- I don't have it off the costs, but you certainly -- have seen an increase. That's for sure.

[Shreevar Kheruka, executive]

Eventually it may -- at full capacity, I believe it will be like 65-35 almost.

[Pranay Roop Chatterjee, analyst]

Okay. So we would have taken price cuts like we were planning to, to expand the volumes for pressware?

[Shreevar Kheruka, executive]

We have taken some price cuts. Yes. That's right. But not as much as we had thought we needed to.

[Operator]

[Operator Instructions] The next question is from the line of [ Aman ] from [ Seven Rivers ].

[Unknown Analyst]

So I'm trying to figure out what's the upside to EBITDA that we can realistically have since the EBITDA expansion that we are seeing is primarily from lower cost of goods, not so much from operating leverage benefits yet? Because employee expenses and other expenses have kind of gone up as a percentage of sales. So how do you see this going forward? Can we expect more improvement in gross margins plus operating leverage benefit kicking in?

[Shreevar Kheruka, executive]

I'll just correct you there because the -- yes, employee expenses on -- I mean they look like they have gone up but you must keep in mind that earlier the employee expenses were debited only for consumer division. Now they could debit it for the whole group. And we have other income, which is basically the employee expense recovery, most of it, not all of it, but most of it is the employee expense recovery, which is services offered by Borosil Limited to the other 2 group companies, which is Borosil Scientific and Borosil Renewables.

So I wouldn't say that we don't have any operating leverage over there. We do. Is it as much as the gross margin expansion? No. Gross margin expansion will play the bigger chunk of the EBITDA expansion. And this -- the operating leverage as I mentioned in the past, we were doing 15-odd percent, and we are talking about low 20s, we're talking about normal 7-odd percent of expansion and margins over some period of time, maybe 2% will come from operating leverage and 5% will come from gross margin improvements. And the gross margin improvements are going to be linked more to make domestically versus imports. So that's the broader split of it.

[Unknown Analyst]

And so on non-glassware business, so where is this -- I know you don't disclose current numbers, but where is this growth primarily coming from? Is it particular channel or a region?

[Shreevar Kheruka, executive]

We have a very strong sales presence in North and East of the country. And West and South have been traditionally slower than the other 2. We have been expanding our sales distribution network in terms of retailers and distributors in South and West. So we have seen good traction in both those areas for our non-glassware. And I expect that to continue. Over and above that, the general trade, overall that e-commerce is -- continues to do well. There was a hot summer this summer. And I think people -- many people may have decided to buy at home rather than go to a shop. That's just adding total, no evidence or any data to back it up, but that's what we believe. So I would say it's a mix of some channels have grown faster than others, and some regions have grown faster than others. So it's specifically the regions which are where we are underpenetrated and we're increasing our penetration. So yes, it's a mix of those 2 channels.

[Operator]

[Operator Instructions] The next question is from the line of Hitesh from Kosha Capital.

[Unknown Analyst]

Congratulations to the entire team. There are 6 listed companies in the kitchenware and we have not only outperformed in this quarter, but I think last 4, 5 quarters, consistently, we've been growing double digits, so congratulations. Sir, My question is on the glassware. So from a channel [indiscernible] what we understand is there has been 10% to 15% discounting that has been given to the distributors, it's a scheme which you generally come out during the festive season, but just wanted to understand, have we advanced the scheme? Because I think even in your previous calls, you did mention that probably some part of that benefit, you will pass it on to the consumer. So have we advanced any scheme that will really come out during the season?

[Shreevar Kheruka, executive]

For the glassware?

[Unknown Analyst]

Yes. In the glassware, yes.

[Shreevar Kheruka, executive]

Yes. As I've mentioned before that we were definitely looking at passing some benefit on to the end customer of -- and to the channel for our glassware because we need to dramatically increase the volumes. So we have done that in this particular quarter. And those scheme in fact, although these schemes have been lower than what we had initially selected, but yes, we have been trying to ensure that the trade supports us in keeping the channel stock because we're trying to get people to switch from plastics and steel to glass. Unless the product is on the shelf, it's not going to be sold. So this has been the main thrust. And I think the numbers show that it has been very successful.

[Unknown Analyst]

Right. So does that mean that the stocking that generally happens during the festive has happened before the festival?

[Shreevar Kheruka, executive]

Well, that depends on whether you believe that the sales have also increased [indiscernible] sales have increased or not, right? So the idea has been to increase [indiscernible] sales. So not to stock up per se, for season. I don't believe people would -- I mean, so this quarter, Q2 numbers are also very important because that will lead you to the answer to this. That will be the answer to this. But my sense is that there has not been any great deal of stocking up for season. We have been able to get [indiscernible] resales for the product and switch people away from other materials such as plastic [ caustic. ]

[Unknown Analyst]

Sure. And I think what is also -- was interesting for me was the products that are now coming out of the furnace, I think you're labeling them as tough one, which was not the case earlier. Just trying to understand, is the competition, which is today importing borosilicate. Is that glass also can be classified as toughened or it's because of our furnace that we can classify it as toughened.

[Shreevar Kheruka, executive]

So I can't comment on all competitors. But by and large, I would say that most of them would not have toughened glass, and we have toughened glass because of our technology that we have improved.

[Unknown Analyst]

Great. Great. Sure. I think good to note that. And second is coming to this -- the BIS standards for the insulated bottles. Now I believe -- I mean everybody has stocked up inventory, right, all the 3 players who are there in the market have stocked up. And I guess domestically, there aren't any players at least in the double wall glass bottles, right? Single wall, you can, extremely easy to make. And there's probably 1 player which is with a very small capacity. So how are you -- for this year, I think you are anyways catered. I mean everybody has enough stock. But going forward, how do you plan to overcome this particular BIS standardization in the double wall glass bottles?

[Shreevar Kheruka, executive]

So as far as there's more than 1 vendor. Many people have set up operations, okay, in terms of manufacturing operations. Are they up to scale yet? Are they up to the cost yet? No, they are not. And that's the reason we believe it will take them some time, maybe 12 months or so to scale up. We are quite confident. It's not rocket science, right? To make these steel bottles, end of day, you don't need some high tech know-how or equipment. It's all quite simple. We need good quality, same as steel which we have and we need people which we have. So I don't see that it's going to be too much of a challenge for any competent person to do this. And they are almost 10 or 12 plants, which I'm aware of, maybe much more than that, even [indiscernible] in India.

[Unknown Analyst]

No, no, sorry, I'm talking about double wall bottles. Not the single wall. Yes.

[Shreevar Kheruka, executive]

I'm also talking about double wall only. There are almost 10 or 12 plants for double wall, which have been set up in India in the last few months. So we are working with 2, 3 of them to see who can supply with the quality that we need and the pricing and with the quantities. So it's a work in progress. I don't have -- I mean, it is definitely a risk for us. There's no gaining around it, but we are working to mitigate it. Beyond that, hard for me to make any further comment on this.

[Unknown Analyst]

Sure. Got it. And lastly, what is our debt figure as on date? And I believe there is a INR 90-odd crores of payable to Borosil Scientific? So is that true? And what is the current debt figure, if you can probably just give that?

[Shreevar Kheruka, executive]

Anand?

[Anand Sultania, executive]

Yes. So our net debt figure probably which is INR 57.8 crores as on 30th of June, that broadly remains the same number as we have not repaid any further loans after that. We are in the process of making a long-term loan payment, which will be done probably in the coming weeks.

[Unknown Analyst]

So the INR 90 crores payable to Borosil Scientific still remains, right?

[Anand Sultania, executive]

That's still remains at the moment, yes.

[Unknown Analyst]

And INR 57.8 crores is your working capital debt, which I believe should be [indiscernible].

[Anand Sultania, executive]

[indiscernible] which is the net debt? So our term loan at the moment is about -- our term loan at the moment, as of 30th June is about INR 125 crores and some maybe a small working capital of about INR 7 crores, INR 8 crores. So this position more or less remains the same. And now in this coming week, probably we'll be able to do some term loan leasing.

[Operator]

[Operator Instructions] The next question is from the line of Aditi Bhatted from Niveshaay.

[Aditi Bhatted, analyst]

So my first question is from the pressware facility. So I missed your comments on the operational efficiency. So I want to know the current operation efficiency from the line that we just installed in the pressware, and what kind of revenue are we targeting from that? Because considering we are not importing and we're producing it in-house. So what kind of growth in the revenue for this particular division can we expect? And my second question is from the opalware side. So with the coming quarters with the festivities around. So have we already started planning of the current capacity utilization being almost full? So how do we plan to cater to the demand of the festivities?

[Shreevar Kheruka, executive]

Okay. So as far as the pressware is concerned, I mentioned earlier, we are operating the furnace at about 75% capacity utilization. And we are roughly selling 75% of what we produce and 25% is going into inventory for this season. And we expect to go to 100%, say, the production by the end of this year. And we hope that by next year, we will sell out the whole furnace, which is our desire. We'll see how it works.

[Aditi Bhatted, analyst]

And what kind of revenue do we target from this? Like...

[Shreevar Kheruka, executive]

Out of glassware sale -- as far as FY '23 is concerned, glassware sales was INR 200 crores FY -- sorry, FY '24 which was -- glassware sales was about INR 200 crores for the whole year. And out of that, that about 50% is pressware, roughly INR 100 crores. And with this production capacity, we can go to anywhere between INR 250 crores and INR 275 crores, okay? So we can 2.5 -- go 2.5x to 2.75x of our pressware sale. So -- and the first quarter, we have seen almost 50-plus percent increase in our revenue from -- so we look to sustain that for the rest of the year.

[Aditi Bhatted, analyst]

So that's completely on account of the pressware division or in pressware facility, the growth?

[Shreevar Kheruka, executive]

Yes. More or less all of it. Yes. As far as opalware is concerned, there's been a slow quarter for everybody, I think. And we do home demand picks up on that. We have adequate capacity at the moment to satisfy current demand. So obviously, the planning, et cetera, for the Diwali started long ago and the inventory has been built. So we just hope to see that the sales pull through.

[Aditi Bhatted, analyst]

Okay. So you have saw -- existing capacity is sufficient enough to cater to the festive demand, right?

[Shreevar Kheruka, executive]

Absolutely. Absolutely.

[Operator]

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for the closing remarks.

[Shreevar Kheruka, executive]

Okay. So thank you to all of those who participated. I do realize it's a long weekend, and few of you want to get home. So thanks for all your questions and your interest in Borosil. We are very confident about our future. Our consumer division has done very well in the first quarter, and we expect and we hope to continue with the performance. So thank you for your support.

[Operator]

On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.