1. Businesses
  2. Manufacturing
  3. Tamil Nadu
  4. Salem
  5. SL024967
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Explosives Manufacturing Unit Raising Funds In Salem

Listing ID: SL024967
Posted By: Owner
Last Active: 5 hours ago
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About Business

This opportunity involves acquiring an explosives manufacturing unit producing products such as slurry and emulsion explosives, PETN, detonating fuses, and safety fuses. The unit operates in a region with no other similar manufacturing facilities within a 600 km radius, providing a strong regional market position. Gross margins are approximately 25% domestically, with export margins around 4 times the domestic profit.

Current Operations
The business is currently engaged in trading explosive products in Rajasthan, generating revenue of approximately INR 20 crore in the financial year 2024-25, with a net profit margin of 10-12%. Previously, the business operated its own manufacturing plants from 2001 to 2003 but shifted to trading due to operational reasons.

New Plant Setup
A new manufacturing facility has been finalized in Salem. The factory infrastructure is ready, with machines in place, and the premises are secured on a 5-year rental agreement. Key details include:

- Available machinery: INR 30 crore
- Land area: 270 acres
- Factory built-up area: 2 lakh square meters
- Warehouse facilities included
- No competing plants within a 600 km radius

Clientele type

The current clientele includes explosives magazines, government contracts, construction projects, and tender-based orders, with mining companies being the primary customers. The same client segments are expected to be served for the proposed new project as well.

Premises

LEASED

Lease per month (in INR): 12.00 L

Security Deposit (in INR): 5.00 Cr

Carpet Area: 11,761,200 sq ft

The facility is located in Salem, Tamil Nadu, with a security deposit of approximately ₹5 crore and a monthly rent of around ₹12 lakh. The market value of the factory is estimated at over ₹100 crore, with machinery valued at more than ₹30 crore.

Asking Price Includes

The transaction terms will be finalized in discussion with interested investors.

Asking Price

INR 20.00 Cr

Minimum ticket size

INR 20.00 Cr

Reason

Explosives Manufacturing Unit Raising Funds In Salem

Licenses

Peso explosives manufacturing licences

Keywords

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Business Tags

Explosives Manufacturing Unit Raising Funds In Salem

Fundraising for ₹10 Cr – 500 Cr

Confidential Process Completed in 120 Days

Strategic Preparation, Aligned Investor Outreach and Seamless Closure

Supported by Advisors with 26+ Years of Experience

Contact IBGrid Team

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