Solar Industries Buys Omnia: Explosives Empire Grows

Solar Industries is embarking on a significant global expansion of its commercial explosives business through the proposed acquisition of South Africa's Omnia Holdings. This strategic move aims to create a more integrated global platform for commercial explosives and blasting solutions.

The acquisition is anticipated to double Solar Industries' revenue by FY28, with Omnia Holdings expected to contribute approximately Rs 14,000-15,000 crore in sales. The deal is expected to close by mid-2027 and will be funded through a combination of debt and internal accruals, with no equity issuance planned.

While Omnia operates at a lower margin compared to Solar, the combined entity is projected to achieve a healthier EBITDA margin of 22-23%. Solar Industries' management expects the acquired business's margins to improve over time due to integration and backward/forward synergies.

Concurrently, Solar Industries will continue to increase its capital allocation towards its defence business, which has already shown substantial growth. Defence revenue saw a 123% year-on-year increase in Q1FY27, contributing 26% of total sales.