Prominent player in manufacturing and supplying solid propellants for India's prestigious missile programmes like Akash, Astra, and reached a milestone ofdelivering 100oth Booster grain for Akash missile in july 2016.
Company has received an order from ISRO (Indian Space Research Organization) for use in the Polar Satellite Launch Vehicle (PSLV). With receipt of this order, the company would be foraying into the niche- space sector, which is a significant milestone for the company.
Additionally, company also bagged domestic order worth Q’ 33.18 crore from Air Head Quarters, Ministry of Defence. This order which company have won was a global tender and competed against international companies. The order is for a product called chaffs and flares which are used as a countermeasure by the air force, navy as well as in army and is to be completed by the end of 2017.
- Total order book as on 3oth September 2016 stands at Q’ 273 crore and currently order book is almost same at Q’ 268.
- On 5th October, company has bagged an order worth Q’ 27.79 crores for the supply of Booster grains from Bharat Dynamics
- Market expansion in explosives and defence business with new Industrial licenses obtained
- Signed NDAs and MOUs with global missile players
- Plans to enter the ammunition business and negotiating for technological tie-up with foreign OEMs
Focusing on exports to South East Asia and Africa
Production of explosives went up by 33% to 32014 tones from previous year of 24066 tones and production of detonators increased to 46.28 million pieces from 42.20 million pieces a year ago. Windmill generated 8.25 lakh units of power compared to 13.67 lakh units during the previous year, a decline of 40% due to unfavorable wind patterns.
Indian explosives industry, estimated to be ` 40 Bn p.a., is considered among the top 5 in the world. Coal requirements for the power sector are projected to reach to about 1070 MT by 2020. Out of this, domestic coal supply is projected to increase to 756 MT by 2022. Industry has been showing a mixed trend with dynamics of changing mining activity levels, technological advancements, use of electric & shock tube detonators etc.
Receiving orders / enquires for export of detonating fuse and other accessories coupled with orders for explosives from coal companies which have been higher than previously executed amounts, would enhance the revenue & profits. Apart from that, company is expecting solid propellants opportunities to grow in view of induction of various missiles in to defence.
To cater the expected higher demand, company is planning to spend about `30.0 crores on expansion and new projects, which includes Greenfield project at new site and expansions at current site during 2016-18, these projects would be funded by internal accruals and a term loan of ` 23.00 crores already sanctioned.
Increasing mining activities by public sector coal companies, expected operations from private coal miners, amended mining regulations, priority of government for construction of roads & irrigation projects and rising export enquiries combined with ‘Make in India’ initiative, revised defence procurement policy, likely induction of new missiles by defence forces, etc. provides large and long term opportunity to company's both military & commercial explosives.
There is a strong support of Rs 351.38. After that, another support is at Rs 327.60.
If it breaks resistance of Rs 381.30, then it may reach to another resistance of Rs 410.08 and further reach to 52 W/H of Rs 430, which is also our target.
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