Business News: The demand for ammunition has increased worldwide due to operation vermilion and geopolitical instability. Companies are also excited by increasing demand. He has got a big opportunity to increase business. In view of the increasing demand, Nagpur company SBL Energy Limited (SBL) is expanding its military-grade explosive production capacity.
The company plans to increase the capacity of its plant in Yenvera village (near Katol) from 3,000 MT per year to 8,000 MTPA in a year. For this, the company has also signed an MoU to invest Rs 500 crore with the state government. With expansion, this plant will become the second largest capacity plant in the private sector at one place.
There will be a capital expenditure of Rs 500 crore on this project. For this, SBL is planning to bring an initial public issue (IPO). SBL chairman Sanjay Chaudhary, CEO Alok Chaudhary and Chairman Divyansh Chaudhary said that the group has 5 plants of which Nagpur is the largest. The group is doing business of Rs 1500 crore. It is also exporting to about 20-25 countries. The company currently has 350 acres of land and has applied to the state government for an additional 500 acres.
The company believes that the decrease in the war reserves of European countries due to the Russia-Ukraine War may create a decade-run market for Indian ammunition. According to management sources, SBL will start with exports and is also ready to respond to the tenders released by the Indian Armed Forces.
TNT, High-Melting Explosive and Research-Development at this plant located in Kalameswar Explosive Like there will be the ability to make explosives. These substances are used to fill empty balls.
