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Solar Industries Plans Revenue Surge After Omnia Acquisition
Solar Industries makes explosives used for industrial work.
It plans to buy a South African company called Omnia for $1.36 billion.
Solar says the purchase could help its revenue grow to about ₹32,000 crore in two years.
It also expects its profits before certain costs to rise above ₹7,000 crore by FY28.
Omnia makes ammonium nitrate, which Solar currently buys from other suppliers.
The deal would also give Solar businesses connected to farming and crop products.
Some investors worried about the size of the deal, and Solar’s share price fell sharply after the news.
Solar says it will use debt taken by Omnia and does not plan to issue new shares.
Solar Industries expects revenue to reach about ₹32,000 crore within two years after acquiring Omnia Holdings for $1.36 billion.
The company projects Ebitda above ₹7,000 crore by FY28, compared with ₹2,750 crore reported for FY26.
The deal would expand the combined company’s presence from about 90 to 110 countries and manufacturing sites from 11 to 25.
Omnia would provide ammonium nitrate supplies, blasting-service synergies, and entry into agriculture through crop nutrition and biological products.
Investors initially reacted negatively, sending Solar Industries shares down 12.6%, while the company ruled out equity dilution to fund the acquisition.
- Who
- Solar Industries Ltd, led by managing director Manish Nuwal, and South Africa’s Omnia Holdings Ltd.
- What
- Solar Industries agreed to acquire 100% of Omnia Holdings for $1.36 billion.
- Where
- The companies operate across India, South Africa, and other international markets; the investor discussion took place in Mumbai.
- When
- The announcement was discussed with investors on Tuesday; Solar expects the revenue impact within two years and Ebitda above ₹7,000 crore by FY28.
- Why
- Solar expects wider distribution, ammonium nitrate integration, explosives and blasting synergies, and entry into agriculture-related products.
Solar Industries’ rationale
Investor concerns
Strategic value
Solar Industries’ rationale
Solar says Omnia will add ammonium nitrate manufacturing, explosives and blasting-service synergies, a broader global footprint, and agricultural businesses.
Investor concerns
Investors appeared concerned about the scale and implications of the $1.36 billion acquisition, selling Solar Industries shares in early trading.
Financing
Solar Industries’ rationale
Managing director Manish Nuwal said Solar will not dilute equity and that debt taken on Omnia’s books will be managed through internal accruals.
Investor concerns
The market reaction indicated concern about the transaction’s financial burden, although the article does not identify a specific investor objection.
Key facts
- Acquisition value
- $1.36 billion
- Stake being acquired
- 100% of Omnia Holdings Ltd
- Projected revenue
- About ₹32,000 crore within two years
- Projected Ebitda
- More than ₹7,000 crore by FY28
- Current reported revenue
- ₹9,838 crore in FY26
- Current reported Ebitda
- ₹2,750 crore in FY26
- Funding plan
- Debt taken on Omnia’s books; Solar ruled out equity dilution
Quotes
Manish Nuwal
Managing director of Solar Industries
“So having ammonium nitrate, having large manufacturing presence in explosives backed up by initiating systems and down the whole services of blasting solutions definitely creates a lot of synergy benefit for Solar as a company. So that is what we looked into this deal.”
livemint.com
Sources
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