Solar Industries India (SOLARINDS) investor relations material

Deal rationale and strategic fit

• Proposed 100% acquisition of Omnia expands the global explosives platform across mining, agritech and industrial capabilities, supporting ambitions in explosives, blasting solutions and industrial chemicals.

• BME adds bulk explosives, electronic detonation systems, digital blasting solutions and mining chemicals, backed by established African and international market access.

• Omnia’s integrated manufacturing and supply-chain infrastructure strengthens vertical integration, cost competitiveness, supply security and operational flexibility.

• Agritech adds technology-led crop nutrition, biological products and services; management has no current plans to expand it into India.

• The combined platform is expected to offer integrated blasting solutions and deeper customer engagement across key markets.

Financial terms and conditions

• Proposed all-cash transaction valued at $1.355bn (INR 12,951 crore).

• Funding planned through debt at Omnia, buyer-group debt and internal accruals; no equity issuance planned. Omnia’s cash surplus is expected to support funding, with final structuring subject to approvals and further work.

• FY2028 combined revenue projected at INR 31,000-32,000 crore and EBITDA at INR 6,800-7,000 crore, implying a 22%-23% EBITDA margin.

• FY2028 debt estimated at INR 10,000-11,000 crore and expected to remain below 2x EBITDA; no repayment timetable committed.

Synergies and expected cost savings

• Omnia’s ammonium nitrate and nitric acid facilities are expected to improve raw-material availability, supply security, vertical integration and flexibility across the explosives value chain.

• Combining Omnia’s manufacturing and explosives capacity with initiating systems and ProBlast down-the-hole services is expected to create operating and commercial synergies.

• BME’s current EBITDA margin is 13%-14%; management sees scope to improve regional explosives margins through ammonium nitrate access, initiating-system sales and ProBlast services.