Categories Other Industries, Research Summary

Solar Industries India: The King of Explosives

“The strong growth of our non-CIL and institutional sector, along with the exports and overseas business were the key drivers behind the growth in our top line. These results are being achieved with the improved operational performance, despite the challenges arising mainly out of volatility in commodity prices, currency fluctuations and hyperinflationary conditions, which demonstrates the strength of the company.  

We have achieved the highest ever defense revenue in this quarter. We are expecting the product evaluation of Pinaka rockets to be completed in around 3 months’ time, and the orders from these rockets will substantially push the revenue from defense in the coming years.  On this backdrop, we are expecting the defense revenue to double in the current financial year. 

We are expecting a volume growth of around 15% based on strong demand from the coal, housing and infrastructure sector. We are entering FY ’24 with an optimistic outlook on increasing our EBITDA margins via enhancing the market footprints, new orders from defense sector, and reduced raw material prices.”

– Mr. Manish Nuwal, CEO & Managing Director in Q4FY23 Concall
Stock Data
Price Performance
Last 5 Days-1.27%
Last 12 Months+36.73%

*As of 26.06.2023

Company Description:

Solar Industries India Ltd. is a prominent Indian company engaged in the manufacturing and supply of industrial explosives and initiating systems. Established in 1995, the company has experienced significant growth and has emerged as a leading player in the explosives industry in India. Solar Industries India Ltd. caters to diverse sectors such as mining, infrastructure, defense, and more. 

Business Segments and Products:

Solar Industries India Ltd. operates through various business segments, including:

  • Explosives: The company manufactures and supplies a wide range of industrial explosives for various applications such as mining, quarrying, and construction.
  • Initiating Systems: Solar Industries India Ltd. offers a comprehensive range of initiating systems, including detonators, detonating cords, and boosters.

Market Analysis:

  1. Explosives Industry Overview: The explosives industry plays a crucial role in various sectors such as mining, infrastructure development, and defense. The demand for explosives is primarily driven by the growth of these sectors and the increasing need for efficient and safe blasting solutions.
  1. Key Market Trends and Growth Drivers:
  • Infrastructure Development: The focus on infrastructure development projects, such as roads, railways, and airports, is driving the demand for explosives in India. The government’s initiatives like “Make in India” and “Smart Cities” further contribute to the growth of the explosives industry.
  • Mining Sector Growth: The mining sector’s expansion, including coal, iron ore, limestone, and bauxite mining, is a significant driver for the explosives market. The increasing demand for minerals and metals for industrial and construction purposes fuels the need for explosives.
  • Defense and Security Needs: The defense sector’s requirements for explosives and ammunition contribute to the growth of the industry. With the modernization and strengthening of India’s defense capabilities, the demand for explosives is expected to rise.
  1. Competitive Landscape and Market Share Analysis: Solar Industries India Ltd. faces competition from both domestic and international players in the explosives industry. Key competitors include AEL (Aimil Ltd.), Dyno Nobel India Pvt. Ltd., IDL Explosives Limited, and Orica Mining Services India Pvt. Ltd. Solar Industries India Ltd. has established a strong market position and holds a significant market share due to its focus on quality, innovation, and customer-centric approach.

SWOT Analysis:


  • Established Brand: Solar Industries India Ltd. has established a strong brand reputation in the explosives industry due to its quality products and customer-centric approach.
  • Wide Product Portfolio: The company offers a diverse range of explosives and initiating systems, catering to various sectors and applications.
  • Strong Manufacturing Capabilities: Solar Industries India Ltd. operates state-of-the-art manufacturing facilities and possesses advanced technologies for efficient production.
  • Financial Performance: The company has consistently displayed strong growth in revenues and profits. This is evident from the graph below.


  • Dependency on External Factors: The company’s performance is influenced by external factors such as government regulations, economic conditions, and fluctuations in commodity prices.
  • Concentrated Customer Base: Solar Industries India Ltd. has a concentrated customer base, with a few large customers contributing to a significant portion of its revenue.


  • Infrastructure Development: The government’s continued focus on infrastructure development presents opportunities for Solar Industries India Ltd. to cater to the growing demand for explosives.
  • Defense Modernization: The ongoing modernization of India’s defense capabilities provides opportunities for the company to supply explosives and ammunition.


  • Regulatory Compliance: Stringent regulatory norms and compliance requirements pose challenges to the explosives industry.
  • Intense Competition: Solar Industries India Ltd. faces intense competition from both domestic and international players in the explosives market.

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