MOSL: THE CORNER OFFICE | SOLAR INDUSTRIES-Well prepared for upcoming defense opportunities
​THE CORNER OFFICE | SOLAR INDUSTRIES: Well prepared for upcoming defense opportunities; Sets defense revenue target of INR5b by FY20
Mr. Manish Nuwal —Managing Director and CEO
Mr Manish Nuwal, a qualified chartered accountant, is associated with Solar Industries India Limited from 1999. He currently plays a key role in overlooking business planning, commercial and technical matters of the company.
- We recently met Solar Industries’ (SOIL) management to get an update on its mining and defense explosive business. We also visited the company’s manufacturing facilities in Nagpur. Key highlights:
Robust infrastructure in place to capitalize on upcoming defense opportunities: Over the past four years, SOIL has invested INR3.5b to create infrastructure for its defense explosive products. It has built facilities for HMX, warhead filling, propellants and rocket integration. SOIL has order backlog of INR1.4b, of which it expects to execute orders worth INR1b in FY18. It has set a revenue target of INR2.5b by FY19 and INR5b by FY20. Current infrastructure is capable of generating future revenue stream of INR7b.
Strong defense opportunity led by government’s focus on ‘Make in India’: India currently imports majority of its HMX, warhead filling and propellant requirements. Thus, the Indian government’s focus on the ‘Make in India’ initiative presents strong business opportunity for SOIL’s product portfolio. We, however, note that there is lack clarity on the timelines for the orders being placed for these products with the Indian companies. SOIL expects ordering activity to pick up once its delivers the initial order of INR1.4b.
Defence orders execution expected to pick up from 2HFY18: SOIL was not able to execute orders worth INR1.4b that it had won over the last two years due to multiple procedural hurdles. However, with the Ministry of Defence now resolving these issues, SOIL expects to execute orders worth INR1b by end-FY18.
Solar Industries India Limited is an explosives manufacturing company. The Company manufactures, supplies and exports industrial explosives and initiating systems. It manufactures various explosives products, such as Slurry and emulsion base explosives, bulk explosives, detonators, pentaerythritol tetranitrate (PETN) and accessories. The Company's products include Large Dia slurry Explosives, Small Dia Emulsion, Small Dia Slurry Explosives, Solar Detonators, Supreme Detonators, Supreme Electric Detonators, Economic Sod, Eco Det, Cord Relay, Cast Booster and Detonating Fuse. Its products are used across mining and infrastructure sectors. It also offers high melting explosive (HMX) and HMX Compounded products to the defense sector. The Company has 25 manufacturing plants eight states in India and three in overseas locations. The Company offers its products to 42 countries across the globe. The Company has manufacturing facilities at Zambia, Nigeria and Turkey.
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