Solar Industries Ltd plans to triple its revenue to about ₹32,000 crore within two years through its $1.36 billion acquisition of South Africa’s Omnia Holdings Ltd, the company’s managing director said on Tuesday. The Nagpur-based industrial explosives manufacturer also expects its earnings before interest, tax, depreciation and amortization (EBITDA) to more than double following the deal, according to livemint.com.
The acquisition process involved Solar Industries securing the buyout of Omnia Holdings Ltd, a South African firm, for $1.36 billion. This strategic move was announced by Manish Nuwal, managing director of Solar Industries, during an investor meeting. The company aims to leverage Omnia’s existing operations to expand its global footprint and enhance its product offerings in industrial explosives and related sectors.
This acquisition marks one of the largest cross-border deals in the industrial explosives sector by an Indian company. Solar Industries’ move to acquire Omnia is expected to significantly boost its market position, allowing it to compete more effectively on a global scale. The deal is also likely to impact the competitive landscape by consolidating key players and expanding the reach of Indian manufacturing capabilities internationally.
Solar Industries’ financial targets post-acquisition include tripling its revenue to ₹32,000 crore and more than doubling EBITDA within two years, as stated by Manish Nuwal. The company’s next quarterly earnings report, due in November, will provide insights into the initial impact of the Omnia acquisition on its financial performance.