Nagpur: Solar Industries on Tuesday incorporated a subsidiary in Botswana for expansion of its explosives business, as per a regulatory filing in the stock exchange.The new entity, Solar Explochem Proprietary Limited (SEPL), was incorporated through Solar Overseas Mauritius Ltd, a wholly owned subsidiary of the Nagpur-based company, making SEPL a step-down subsidiary of Solar Industries.The company subscribed to a 65% stake in the new unit for an initial cash consideration of $3,25,000. No govt or regulatory approvals were required for the incorporation, the filing stated.The Botswana entity comes two weeks after TOI reported that Solar signed a definitive agreement to acquire South Africa’s Omnia Holdings for an enterprise value of Rs 12,951 crore, a deal the company said would create one of the world’s largest integrated blasting solutions platforms. The Omnia buyout, to be executed through Solar SA Investments Proprietary, will give Solar access to markets including the US, Canada, Australia, Brazil and Indonesia besides southern and western Africa, and mark its entry into the farm sector through Omnia’s ammonium nitrate business. Solar had said the transaction was expected to close in early-to-mid 2027, subject to shareholder, regulatory and competition approvals.TOI had also reported that CRISIL Ratings placed Solar’s long-term bank loan facilities of Rs 1,479.5 crore and non-convertible debentures of Rs 35 crore on ‘Rating Watch with Developing Implications’ following the Omnia announcement, saying it would monitor the deal’s completion, regulatory approvals and integration plans. CRISIL said the combined entity’s operating margin could moderate to 22-23% from Solar’s current 26-27%, though it maintained that Solar’s underlying credit profile remained strong.Solar’s consolidated revenue rose to Rs 9,837 crore in FY 2025-26 from Rs 7,551 crore in FY 2024-25, with the defence segment contributing around 27% of revenue, compared with around 5% in FY 2020-21. Its consolidated order book stood at over Rs 21,350 crore as of June 30, including defence orders exceeding Rs 18,000 crore.Solar Group has been steadily expanding its African footprint, having entered the region in 2010 with a manufacturing facility in Zambia and acquired South Africa’s ProBlast, a mining and blasting services company, in 2024.
