Solar Industries to Acquire Sivasakthi Industrial Explosives for ₹115 Crore
Solar Industries India Ltd announces a major acquisition to enhance its presence in the explosives sector.
Solar Industries will buy Sivasakthi for ₹115 crore.
The acquisition aims to expand Solar's business operations.
Sivasakthi reported minimal turnover in recent fiscal years.
In a significant move to bolster its business operations, Solar Industries India Ltd, through its wholly owned subsidiary Solar Explochem Ltd, has announced the acquisition of Sivasakthi Industrial Explosives Pvt Ltd for ₹115 crore. The announcement was made on Thursday, with the company notifying the stock exchanges about the deal.
The acquisition involves a share purchase agreement where Solar Explochem will acquire 100% of Sivasakthi's issued and paid-up equity share capital. This transaction is subject to mutually agreed terms and conditions between both parties. The deal has been disclosed under Regulation 30 of the SEBI listing obligations, ensuring compliance with regulatory requirements.
Sivasakthi Industrial Explosives, established in 2008, specializes in the manufacturing and trading of various types of explosives for industrial mining and other applications. Despite its potential, the company reported no turnover in FY 2025-26, with previous fiscal years showing minimal earnings of ₹35 lakh in FY 2024-25 and ₹1.26 crore in FY 2023-24. Solar Industries aims to leverage this acquisition to enhance its market position in the explosives industry.
The acquisition is part of Solar Industries' broader strategy for business expansion, with expectations to finalize the deal within a year. Notably, no governmental or regulatory approvals are required for the completion of this transaction. This acquisition follows Solar's recent agreement to acquire South Africa’s Omnia Holdings for ₹12,951 crore, which is poised to create one of the largest integrated blasting solutions platforms globally.
Upon completion of the Omnia deal, Solar Industries anticipates gaining access to key international markets, including the US, Canada, Australia, Brazil, and Indonesia, as well as southern and western Africa. This strategic move will not only strengthen Solar's foothold in the explosives sector but also open avenues in the agricultural sector, given Omnia's significant role in ammonium nitrate production. The Sivasakthi acquisition is expected to be finalized by mid-2027, contingent on customary conditions, including competition approvals in relevant jurisdictions.
