TV Chowdhary, Managing Director of Premier Explosives, an Indian producer of high-energy materials, solid propellants, and detonators, stated that the deal is expected to enhance their position in next-generation defense systems by merging their expertise in explosives with Apollo Micro Systems’ strengths in electronics and communications. He also mentioned that new investments in manufacturing capacity are anticipated to drive growth in the current and upcoming financial years.
He noted that fulfilling about half of the company’s ₹1,500 crore order book would suffice to reach the upper limit of the FY27 revenue target, with any remaining orders extending into the next financial year.
Chowdhary announced that the company is upgrading its facilities for mixing plants and boosting RDX and HMX capacities, which are crucial for future growth.
Regarding the reasons behind the acquisition, Chowdhary expressed that the partnership will better address the evolving needs of the defense sector, where integration of electronics and communication systems with explosives and ammunition is increasingly vital.
“With our robust foothold in explosives alongside Apollo Micro Systems in electronics and communication, we believe we’re well-positioned to meet future requirements,” he remarked.
He further clarified that there will be no immediate changes in the company’s management; Chairman Dr. Gupta and the current leadership will remain post-transaction. Chowdhary confirmed that he will continue as Managing Director for the rest of his term.
Commenting on the industry outlook, Pulkit Agarwal, Director at CareEdge Ratings, stated that the acquisition underscores the government’s ongoing initiative to boost domestic defense manufacturing. He pointed out that the Union Budget raised the defense allocation by nearly 15% to around ₹7.85 trillion, with capital expenditure for defense services increasing by about 22%. He also highlighted a record acceptance of necessity approvals and a growing share of private companies in defense procurement.
CareEdge anticipates a growth of 10-15% in the Indian defense sector over the next four years, as domestic firms progressively enhance their capabilities through joint ventures and technology transfers.
The current market capitalization of Premier Explosives stands at ₹3,694.20 crore.
For the full interview, watch the accompanying video
