Premier Explosives Eyes Rs 500-Crore Turnover In Next Three Years From Global Munition JV

Premier Explosives Ltd. expects its new joint venture with Global Munition Ltd. to add Rs 500 crore in turnover to the company in three years, according to Managing Director TV Chowdary. 

On Dec. 13, Premier Explosives announced that it had entered into a memorandum of understanding with Global Munition, a subsidiary of NIBE Ordnance and Maritime Ltd., to set up a joint venture to manufacture defence and aerospace products. Under the agreement, Premier Explosives will hold 49% of the stake in the new entity, while Global Munition will hold a 51% stake.

Commenting on the funding for the proposed JV, Chowdary told NDTV Profit on Monday that the company will make the investment to acquire the stake through internal accruals and a fundraising route.

"We, being in the explosive business, and NIBE being a fast-growing company producing hardware, want to totally complement each other's skills and performance," he said, adding that big growth is expected for the JV in the future.

The JV is expected to give a turnover of Rs 200 crore next year when it operationalises. But in the coming three or four years, the company expects a bigger jump, according to Chowdary. "In the coming two to three years, we expect to cross Rs 500 crore. That is a visible target."

The top executive said that Premier Explosives' Rs 500-crore revenue guidance in the current financial year and 20% growth target in fiscal 2026 did not factor in the joint venture business. "Since this is a new development, we expect this is going to be additional income and growth for premium."

The company is on a "fast-track" mode to get the project off the ground, he said. "We expect that in the coming five to six months, the plan should be on the table."

The margin of Premier Explosives will be between 15% and 20% even as the new project starts, according to Chowdary.