Solar Industries India Ltd.: A Comprehensive Overview of the Explosives Giant

Brokerage Free Team • March 15, 2024 | 4 min read • 643 views

Solar Industries

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The global industrial explosives industry is poised for substantial growth, with projections indicating an annual value exceeding US$16 billion by 2028. This expansion is mirrored in India, where the explosive industry is experiencing rapid growth, with annual usage reaching 500,000 tonnes and anticipated revenue hitting $159.2 million by 2028, as reported by Mint.


The remarkable growth in the explosive industry can be attributed to a surge in demand, primarily fueled by the mining, construction, and infrastructure sectors. Explosives have become indispensable in various developmental projects within these industries. Furthermore, the sector's foray into defense and space missions has contributed significantly to its upward trajectory. The increasing reliance on explosive technologies in critical sectors has been a driving force behind the industry's overall growth.


One notable player in the explosive manufacturing domain is Solar Industries India Ltd.


Solar Industries India Ltd.: An Overview


Established in 1983, Solar Industries India Ltd. has emerged as a leading manufacturer of bulk explosives, packaged explosives, and initiating systems. Led by CEO Manish Nuwal, the company has witnessed remarkable growth, with its current total order book standing at Rs. 4,802 crore as of Q3 of FY24. Notably, the company's stock has delivered an exceptional return of 200% over the past two years.


Company Snapshot

Market Cap Enterprise Value P/E P/B
₹ 66,476.26 Cr. ₹ 66,836.23 Cr. 115.62 31.48
Dividend Yield Book Value (TTM) Cash Flow Debt
0.11 % ₹  233.39 ₹ 60.95 Cr. ₹ 420.92 Cr.
Promoter Holding EPS (TTM) Sales Growth ROE
73.15 % ₹  63.54 64.62% 28.43 %
ROCE Profit Growth    
33.85% 70.31 %    


Solar Industries India Limited operates both domestically and internationally, specializing in the manufacture and sale of industrial explosives and explosive initiating devices. The company's product range includes bulk and packaged explosives, initiating systems such as electronic, electric, non-electric, and plain detonators, as well as defense products like unmanned aerial systems, military explosives, and rockets.


Company Growth and Expansion


Over the years, Solar Industries India Limited has transformed from a local manufacturing player to a global powerhouse in the industrial explosives sector. The company boasts one of the world's most integrated facilities for ammunition production and was the first Indian company to surpass an annual production of 300,000 metric tons of explosives.


In addition to its strong presence in India, Solar Industries has expanded its operations internationally, with manufacturing facilities in countries like Nigeria, Zambia, Ghana, South Africa, Turkey, Tanzania, and Indonesia. This global footprint has bolstered its revenue streams and market reach.

Source : Tijori Finance

Product Portfolio and Performance


Solar Industries' product portfolio encompasses a wide range of offerings:


1. Industrial Explosives: The company is a major player in the Indian market, manufacturing detonators, cast boosters, and bulk explosives extensively used in mining and infrastructure projects.

2. Explosives-Initiating Devices: Solar Industries specializes in electronic and non-electric detonators, delays, and other initiating systems crucial for blasting operations in various industries.

3. Defense Products: With a focus on India's defense capabilities, the company produces a range of defense products including aerial bombs, grenades, warheads, and explosive cartridges.


Explosives remain Solar's largest revenue contributor, accounting for 75-80% of total revenues. Initiating Systems and Defense Products also play significant roles in the company's revenue streams.

Financial Performance and Outlook


Solar Industries India Limited has demonstrated robust financial performance over the years. Revenue has witnessed substantial growth from INR 2,237 crore in FY20 to over INR 6,900 crore in FY23, reflecting the company's expanding market presence and product offerings.


Key factors driving the company's financial success include:


- Market Dominance: With a market share of approximately 24% in the explosives industry, Solar Industries has established itself as a key player both domestically and internationally.

- Strong Order Book: The company's substantial order book of Rs. 4,802 crore as of December 2023 provides revenue visibility and stability.

- World-Class Manufacturing: Solar's state-of-the-art manufacturing facilities and backward integration strategies contribute to its operational efficiency and cost savings.

- Financial Risk Management: The company maintains a strong financial risk profile, evidenced by comfortable debt protection metrics and sound operating efficiency.


Looking ahead, Solar Industries India Ltd. is poised to maintain its robust market position, witness healthy revenue growth, and continue its expansion into international markets. The company's commitment to environmental, social, and governance (ESG) principles further enhances its standing among investors and stakeholders.


In conclusion, Solar Industries India Ltd. stands as a beacon of success in the explosive manufacturing industry, combining technological innovation, strategic expansion, and financial prudence to deliver value to its stakeholders and contribute to India's industrial growth.


This article provides a comprehensive overview of Solar Industries India Ltd. and its operations in the explosive manufacturing sector. Share your thoughts and insights in the comments section below.