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Informist, Tuesday, Sept. 15, 2026

 

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--Solar Ind: Africa revenue to grow multifold post Omania Holdings boyout 
--CONTEXT: Commments by Solar Ind mgmt in post acquisition analyst call 
--Solar Ind: See synergy benefits in Africa from Omnia Holdings acquisition 
--Solar Ind: See debt at INR 100 bln-INR 110 bln by FY28 from buyout, others 
--Solar Ind: See India exports to Africa rising post Omnia Holdings buyout 
--Solar Ind: Expect distribution to increase to over 100 countries 
--Solar Ind: Expect allocation to defence segment to go up going ahead 
--Solar Ind: No plan to expand Omnia Holdings agri ops to Indian mkts 
--Solar Ind: Expect Omnia Holdings mining business to expand going ahead 
--Solar Ind: Will primarily focus on India, Africa for business growth 
--Solar Ind: Expect Solar Group EBITDA margin to rise in Africa post buyout 
--Solar Ind: See Omnia Holdings' mining revenue from Africa rising sharply

 

By Astha Oriel and Avishek Rakshit

 

NEW DELHI/KOLKATA – Nagpur-based Solar Industries India Ltd. expects its total debt to mount manifold to INR 100 billion–INR 110 billion by the financial year 2027-28 (Apr-Mar) from INR 14.68 billion as of FY26 end. It is primarily on account of funding the acquisition of South Africa-based Omnia Holdings Ltd. and other corporate matters, a senior company official said Tuesday. 

 

The company's wholly-owned step-down subsidiary Solar SA Investments Proprietary Ltd. has signed a definitive agreement to acquire Omnia Holdings in an all-cash transaction valued at approximately $1.36 billion. Solar Industries is targeting earnings before interest, tax, depreciation, and amortisation at INR 68 billion–INR 70 billion for FY28. In FY26, the company's EBITDA was INR 27.50 billion.

 

"The acquisition would create one of the largest and most integrated explosive and blast chamber solutions platforms globally. This expanded manufacturing capacity, enhanced market reach, and true access to strategically important mining will be crucial. The benefits of this expanded footprint, strengthened industrial base, and broader customer access are expected to become increasingly visible from FY27-28," Managing Director and Chief Executive Officer Manish Nuwal said. The acquisition will aid its revenue to grow multifold in the African market, he added.  

 

The company expects its distribution network to increase to more than 100 countries from the existing 90, according to the official. Solar Industries also expects its manufacturing base to expand to 25 countries from the existing 11 countries with this acquisition, Nuwal said.

 

Solar Industries is targeting to reach $1 billion in sales in Africa with the acquisition of Omnia Holdings. "Solar was working in African continent from last 15 years. And, the overall revenue, which is from Africa is around $300 million. And, in the Omnia, majority of mining business comes from Africa. Africa means South Africa and nearby countries in West Africa. If you plug together, definitely the current level of $300 million will reach to $900 million to a billion dollars sales from African market itself," Nuwal said, adding that the company will increase its market or sales into the new territories. "So, that will be complementary to the overall mining business as well. As for the market share, we don't have the numbers as of now. From $300 million, it will be reaching to almost a billion dollars from mining business in Africa."

 

For its non-mining operations, Solar Industries expects the acquisition of Omnia Holdings to provide complementary benefits. "As far as the agricultural business of Omnia is concerned, these are the strategic assets which have complementary benefits to the Solar as a function. And that brings a complementary business complement because they have a minimum metric of electricity and they have a strong presence in strategic regions. So, if you combine those complementary assets with our larger perspective of advancing the business from the mining segment, it has plenty of value. Since it's a complementary business, particularly, and they also provide a lot of technology-driven crop nutrition, biological and agri-tech solutions to the large farmers, it adds value," Nuwal said. 

 

Nuwal expects the company's margin to rise in Africa after the acquisition of Omnia Holdings. "If you look at the global scenario on explosives, the margins are in the range of 18-19% by large. And if you look at the current EBITDA margins of BME (Omnia Holdings mining division), it's around 13% to 14%. And if you consider the kind of synergistic benefits in the form of ammonium nitrate to Solar also, in the form of initiating distances from Solar to BME, and if you combine these with the down-the-hole services with Robla, definitely, these combined together will add will help us to enhance the margins for BME and Solar together in that region," Nuwal said. The company expects a lot of headroom in enhancing its margins in the explosives business, he added.  

 

The company's primary focus will be on its domestic operations and expanding footprints in Africa. "So most of our overseas visits come from Africa. If you look at our clear strategic map, we are focusing on India and Africa as a continent. So this acquisition will help us to enhance or strengthen our market presence. So there is enough headroom available for us to increase the business purpose. So we will be focusing on these two markets significantly," Nuwal said. 

 

The capital allocation in Solar Industries' defence operations is also expected to significantly increase, Nuwal said. The company has announced a total capital expenditure of INR 20.50 billion for FY27, as per the company's investor presentation. "For the last 15 years, we have created one of the most integrated sectors (defence) that we see across the world. And going forward, we have announced a capex programme of around INR 10,000 crores (INR 100 billion) two years back. And we are working on that programme quite specifically. And if you look at the portfolio which we have lined up till now, and with the products which are likely to come up in the next couple of years, it's quite significant. So definitely, our focus and our capital allocation for defence will not go down further," Nuwal said. 

 

For the June quarter, the domestic explosives operations and international explosives operations accounted for 37?ch, of its total sales. The sales from defence operations accounted for 26% of its total revenue. The company currently has a total order book of INR 213.50 billion. "The plan of the company is not just to look at the debt-free level for us, but definitely we are working to expand our explosives business and at the same time defence vertical also," Nuwal said. 

 

For the June quarter, Solar Industries India had reported a consolidated net profit of INR 6.53 billion on revenues of INR 36.68 billion. At 1410 IST, its shares traded nearly 13% lower at INR 19,335 apiece on the National Stock Exchange. End

 

Edited by Himanshi Gupta

 

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