Solar Industries’ Subsidiary to Invest ₹12,700 Crore in Nagpur Defence Hub

Economic Explosives Limited (EEL), a subsidiary of Solar Industries India Limited, has entered into an agreement with the Government of Maharashtra to develop a major defence and aerospace project in Nagpur. The MoU was signed on January 22, 2025, at the World Economic Forum in Davos, Switzerland. The proposed project will require an investment of approximately ₹12,700 crore.

As of 11:17 AM today, on January 24, Solar Industries India Ltd is priced at ₹9,578.85, marking a modest intraday rise of ₹19.95 (0.21%). While the stock has dipped by 9.32% over the past six months, it has delivered a 44.61% gain over the past year.

Focus on Defence Manufacturing

The project is to expand production capacity in areas including drones, unmanned aerial vehicles (UAVs), counter-drone systems, explosives, and other materials. Additionally, the initiative will include the development of new products, such as military transport aircraft.

The state government has agreed to assist EEL with the necessary approvals, permissions, registrations, and fiscal incentives required for the project. These facilitation measures will align with Maharashtra’s existing policies and regulations.

Other Developments 

Solar Industries has been expanding in the defence sector since its entry in 2010. The company recently secured export orders worth ₹2,039 crore for defence products. These orders, to be delivered over 4 years, shows the company’s presence in global markets.

Financial Overview

Solar Industries India Limited has a market capitalisation of over ₹86,000 crore. The company has a compound annual growth rate (CAGR) of 28.1% in profits over the past five years. As of September 2024, its order book stands at ₹5,757 crore.

Defence Sector

The Nagpur project represents a huge investment in the country’s defence and aerospace. By focusing on manufacturing and product diversification, EEL’s plans align with the broader goal of boosting the country’s strategic infrastructure. The project is to drive both technological and industrial growth in the region.

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