Industry Profile: Mining as a primary sector of economics is essential for development, not for employment but utilization of natural resources. Minerals constitute the backbone of the economic growth of any nation, and India has been eminently endowed with this gift of nature. There is much evidence that the exploitation of minerals like coal, iron ore, copper, lead, and zinc has been going on in the country from time immemorial. The Mining industry in India is a significant economic activity that contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5%, but going by the GDP of the entire industrial sector, it contributes around 10% to 11%. Even mining done on a small scale contributes 6% to the entire cost of mineral production. The Indian mining industry provides job opportunities to around 700,000 individuals.
However, the first recorded history of mining in India dates back to 1774, when an English Company was granted permission by the East India Company to mine coal in Raniganj. M/s John Taylor & Sons Ltd. started gold mining in Kolar Gold Fields in 1880. The first oil well was drilled in Digboi in 1866 – just seven years after the first-ever oil well was drilled anywhere in the world, viz. in Pennsylvania state, the USA, in 1859. However, mining activities in the country remained primitive in nature and modest in scale until the beginning of the current century. After that, with progressive industrialization, the demand for and hence the production of various minerals gradually increased. After India became independent, the growth of mining under the impact of successive Five Year Plans has been swift. There are ambitious plans in the coal, metalliferous, and oil sectors to increase the increase production of minerals during the 8th Five Year Plan and after that.
Company Profile: Solar Industries India Limited was founded in 1983 and is based in Nagpur, India. The Company was formerly known as Solar Explosives Limited and changed its name to Solar Industries India Limited in February 2009.
The Company manufactures and supplies explosives and explosives accessories onshore and offshore. The Company’s products include bulk cartridges, detonators, detonating cords, Pentaerythritol Tetranitrate (“PETN”), and cast boosters. In addition, it offers industrial explosives, such as packaged and bulk explosives; and initiating systems, including electronic, non-electric, electric, and plain detonators, as well as cord relays, cast boosters, detonating cords, and aluminum elements products. The Company also provides defense products, including military and new generation explosives, bombs, warheads, ammunition, rockets, and propellants, as well as initiating systems and pyros, such as fuzes, detonators, ignitors, decoys and flares, and riot control devices. In addition, it offers contract manufacturing services.
Shareholding Pattern: BSE Filing
Financial and Ratios: [table id=208 /]
Future Prospects: This Company operates in one crucial segment with some well-known companies as their clients, so I believe there is no issue. Plus, the dividend can’t lie. It is growing. In my view, this is a good company for the long term.
