Solar Industries India's wholly owned subsidiary, Solar Explochem Ltd, has signed a Share Purchase Agreement to acquire 100 per cent stake of Sivasakthi Industrial Explosives Pvt Ltd for ₹115.02 crore. According to the latest disclosure, the agreement was signed on October 15, 2026, and the acquisition will be completed through Solar Explochem within 12 months. The transaction does not constitute a related party deal, as neither the promoter nor the promoter group holds any interest in the target entity. The acquisition aims to boost the company's strategy for expanding its business in the mining explosives segment.
Sivasakthi Industrial Explosives is an India-based private company incorporated in 2008 that operates in the explosives industry. The company is engaged in the manufacture, production, processing, retailing, wholesaling, supply, distribution and trading of explosives for industrial mining and other purposes. As reported by the regulatory filing, the target company's operations in industrial explosives could add to the group's presence in the explosives industry, particularly in applications related to mining and other industrial purposes.
According to the filing, Sivasakthi reported nil turnover in the financial year 2025-26, following a decline in revenue in the preceding year. Its turnover stood at ₹34.99 lakh in FY25 and ₹1.26 crore in FY24. The company did not disclose any additional financial details about Sivasakthi as part of the acquisition announcement. The ₹115.02 crore consideration paid for 100% equity stands in stark contrast to the target's recent financial performance, suggesting the deal is likely driven by strategic assets such as licenses, infrastructure, or market access rights rather than current revenue generation.
The acquisition is part of Solar Industries' business expansion plans and will give its subsidiary full ownership of Sivasakthi. According to the regulatory filing, the target company's operations in industrial explosives could add to the group's presence in the explosives industry, particularly in applications related to mining and other industrial purposes. This acquisition aligns with the company's broader strategy to expand beyond its traditional explosives business into integrated defence manufacturing value chain, with the stated objective of business expansion within the explosives sector.
Motilal Oswal highlighted that Solar Industries has expanded beyond its traditional explosives business and is building an integrated presence across India's defence manufacturing value chain. The brokerage expects the commissioning and trials of systems such as Nagastra, Rudrastra and Bhargavastra to open up additional revenue opportunities for the company. Following the acquisition, Motilal Oswal expects industrial explosives to account for 78 per cent of Solar Industries' revenue mix by FY29, with defence contributing the remaining 22 per cent.
