Stock Market Today: Shares of Premier Explosives were locked in the 10% upper circuit limit at ₹567 apiece in early morning trade on Monday, December 16. This surge came after the company announced it had entered into a Memorandum of Understanding (MoU) with Global Munition Limited, a subsidiary of NIBE Ordnance and Maritime Limited (part of the NIBE Group), to establish a joint venture for manufacturing defence and aerospace products.
In the proposed joint venture, Global Munition Limited and Premier Explosives Limited will hold equity in the ratio of 51:49, according to the company’s regulatory filing.
In November, the company received an order for ₹89.20 crore from Singareni Collieries Company (a government company) for the supply of SME explosives, LDC explosives (Cap & Non-Cap), and accessories (Cast Booster, Detonating Fuse, Cord Relay, Nonel, and Electronic Detonators – Factory set) for use in OB blasting at different opencast projects of SCCL to be delivered over a period of two years.
Premier Explosives is a leading player in the defence and aerospace segments. It manufactures a diverse range of explosives used in mining and infrastructure industries. These include bulk explosives, cast boosters, detonators, and detonating fuses. The company supplies these products domestically and internationally, with exports to countries like Israel, Greece, Jordan, and Thailand.
The company is a key player in India’s defence and space programs. It manufactures high-energy materials such as solid propellants for tactical and strategic missiles like Astra, Akash, and Agni.
Additionally, it produces advanced pyrotechnic devices, bombs, warheads, chaffs, flares, and other countermeasures. The company also contributes to the Indian Space Research Organisation (ISRO) by supplying solid propellants for satellite launch vehicles.
Defence Sector Outlook
The Indian defence and aerospace sector is rapidly evolving, driven by the government’s strategic push towards self-reliance and indigenisation under the “Make in India” initiative. As one of the world’s largest importers of defence equipment, India is making significant strides in reducing its dependence on foreign suppliers by fostering domestic production capabilities.
Favourable government policies, including the introduction of the Defence Production and Export Promotion Policy (DPEPP) and the Strategic Partnership (SP) model, support the sector’s growth. These initiatives are designed to encourage private sector participation, promote joint ventures, and facilitate technology transfers from global Original Equipment Manufacturers (OEMs) to Indian companies.
India’s defence exports have reached a new high, surging to ₹21,083 crores (approximately $2.63 billion) in the Financial Year 2023-24, marking a 32.5% increase from the previous fiscal’s ₹15,920 crore. This remarkable growth signifies a 31-fold increase over the past decade compared to FY 2013-14, as per the recent estimates.
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