Solar Industries’ Rs 47-crore explosives plant in South Africa to start operations by year end

NEW DELHI: In what is being described as the largest explosives plant to be set up abroad by an Indian private sector entity, Solar Industries’ South African facility to manufacture bulk explosives and cartridges is set to start functioning by the end of this year, a top company executive said, adding it was also planning plants in Australia and Indonesia in the near future.

The South African plant, which will have a capacity of 40,000 metric tonnes of explosives annually, would cater to the African markets. “The bulk explosives plant is being set up with an investment of Rs 47 crore and will take care of the growing market there,” Nilesh Panpaliya, CFO, Solar Industries India told ET.

Panpaliya said that following the South African facility, the company also has plans to set up similar plants in Indonesia, Australia and Ghana, where demand for explosives is high. Exports already contribute more than 30% of the company’s annual turnover.

“We see exports as a huge potential of growth. We are aiming for a 25-30% increase in exports annually, given our strengths abroad,” he said. Solar Industries last week also bagged a Rs 443-crore order from Singareni Collieries Company Ltd ( SCCL) for the supply of explosives in the domestic market.

The company recently got a range of industrial licenses to make ammunition and military grade explosives in India for supply to the armed forces. Ammunition is seen as a big potential under the Make in India initiative, given that Indian forces are still import-dependent and have a substantial annual requirement. Nagpur-based Solar Industries got a government order for a new plant to manufacture bi-modular charge systems used by the artillery and would invest Rs 800 crore in the project.