Ladies and gentlemen, good day and welcome to the Solar Industries business update call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikash Singh from ICICI Securities. Thank you, and over to you, sir.
Thank you, Steve. Good morning, everyone. A warm welcome to Solar Industries' call. We would like to thank the management to give us the opportunity to host them. From the management side, we have with us Mr. Manish Nuwal, Managing Director and CEO, Mr. Suresh Menon, Executive Director, Mr. Milind Deshmukh, Executive Director, Mr. Moneesh Agrawal, Joint CFO, and Mrs. Shalinee Mandhana, Joint CFO. Without taking any more time, I will hand over to Manish Ji for his opening remarks. Over to you, sir.
Good morning, everyone, and thank you for joining us today. On behalf of Solar Group, I, Shalinee Mandhana, would like to extend a warm welcome to all our investors, analysts, shareholders and stakeholders participating in this call. Today marks a significant milestone in Solar Group's growth journey. We are pleased to announce that Solar SA Investments Proprietary Limited, our wholly-owned step-down subsidiary, has signed definitive agreements for the proposed acquisition of Omnia Holdings Limited, a leading diversified mining and agri tech company headquartered in South Africa. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are based on current expectations, assumptions, estimates, and projections. Actual outcomes may differ from these expressed or implied by such forward-looking statements.
I would also like to highlight that the proposed transaction remains subject to customary regulatory, shareholder, and other closing approvals and conditions. Until completion of the transaction, Solar and Omnia will continue to operate as independent businesses. Consequently, there may be certain matters relating to funding, integration, synergies, future financial performance and other transaction-related aspects on which we may not be able to provide detailed commentary at this stage. We look forward to sharing more comprehensive insights as the transaction progresses. Further, I would like to clarify that today's call is being conducted specifically to discuss the proposed acquisition of Omnia. Accordingly, we will not be taking questions related to Solar Group's current business operations outside the scope of this transaction. With that, I would now like to invite our Managing Director and CEO, Mr. Manish Nuwal, to take you through the strategic rationale and highlights of this proposed transaction.
Over to you, sir.
A very good morning to all of our beloved shareholders and stakeholders. The strategic rationale for this proposed acquisition of South Africa's Omnia Holdings Limited is to create a more integrated global platform for commercial explosives and blasting solutions. Over the past three decades, Solar has built a strong position in the global explosive industry through its focus on innovation, reliability, and manufacturing excellence and customer-centric solutions. The Solar Group has steadily expanded its footprint across Africa, building customer relationships, operational capability, and market access across key mining jurisdictions. Solar first entered the SADC region in 2010 with the establishment of its first overseas manufacturing entity in Zambia. It expanded its operation in South Africa in 2015 through a distribution platform, followed by the commissioning of its manufacturing facility in South Africa in 2017.
These investments have enabled Solar to establish a strong operational foundation and become a trusted partner to the region's mining industry. In 2024, Solar strengthened its South African presence through the acquisition of ProBlast, a local South African company specializing in open-cast mining, drilling, and blasting operations. Building on this foundation, the proposed acquisition of Omnia by Solar South Africa represents the next strategic step in Solar Group's SADC journey, significantly expanding its operation, manufacturing, and distribution capabilities across the world. The proposed transaction marks a transformational milestone in Solar Group's strategic ambition to become a leading global explosive and mining solution provider by enhancing its scale, market access, and competitive positioning across Africa and other international markets. Omnia's mining business, operating under the well-established BME brand, brings significant expertise in open-cast mining bulk explosives, electronic detonation systems, digital blasting solutions, and mining chemicals.
Alongside a strong presence across Africa and international markets. The combination will serve. Hello. Okay. Omnia's agriculture segment provides a compelling platform that promotes sustainable agriculture and biological solutions. Leveraging its proprietary Nutriology model and Agribio solutions, the business delivers science-based crop nutrition products and services to customers across multiple geographies. A key strategic attraction of the transaction is Omnia's integrated manufacturing infrastructure. The agriculture segment operates nitric acid and ammonium nitrate production facilities, which is the largest, most reliable and sustainable in the region. In addition, Omnia has recently expanded its ammonium nitrate storage infrastructure through a new 5,000 ton storage tank, which has doubled its storage capacity. These capabilities are expected to significantly strengthen the vertical integration, enhance security of supply, improve raw material availability, increase operational flexibility, and reinforce Solar Group's long-term cost competitiveness across the explosive value chain.
Together, Omnia's mining and agriculture business, supported by a strong integrated manufacturing and supply chain platform, provides a robust industrial base to support the combined Solar Group's long-term growth ambition. Omnia is also led by an experienced management team with deep operational, financial, and sector expertise, with a proven track record of executing its growth strategy. The proposed acquisition is expected to drive commercial growth and operational efficiency through technology innovation, broader customer coverage, enhanced supply chain resilience, greater product and service integration, and accelerated development of advanced blasting solutions. The combination will serve as a significant catalyst for Solar Group's next phase of growth. The transaction would create one of the largest and most integrated explosives and blasting solution platforms globally, with expanded manufacturing capabilities, enhanced market reach, and access strategically important mining jurisdictions.
The benefit of this expanded footprint, strengthened industrial base, and broader customer access are expected to become increasingly visible from FY 2028 itself. It increased Solar Group's revenue in the Africa's mining market by multi-fold growth. The acquisition is therefore expected to be highly complementary to Solar Group's long-term vision of becoming a leading global explosive blasting solution and industrial chemical enterprise. Thank you very much.
We now open to question and answer session.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Amit Dixit with Goldman Sachs. Please go ahead.
Yeah. Hi. Good morning, everyone, and thanks for the opportunity. First of all, congratulations for this acquisition, a big step in Solar's growth journey. Two questions from my side. The first one is essentially, just wanted to understand a bit more on the value chain integration that we are planning to achieve in SADC region. We have our facilities like ProBlast, an existing facility in South Africa. Omnia, of course, have got its own upstream operation. If you could throw some more light on how we are going to integrate this entire value chain and the benefits that it will serve to us. That is the first question.
Good morning, Amit, and thanks for your compliment. If you look at the overall positioning of Solar and Omnia together, definitely it creates a lot of synergy benefits for both the companies. If you look at Omnia's current strength, they have a large state-of-the-art facilities for manufacturing ammonium nitrate. They also have large capacities to handle explosives, which Solar also have. Apart from that, Solar's initiating system business will also fill up the vacuum which Omnia have at this moment. If you integrate all these three basic business value section along with the down-the-hole services through ProBlast, definitely this will add lots of value for Solar in the future.
Okay. The second question is essentially on the funding part. It is an all-cash deal, I understand. Maybe we would be required to take some debt to fund this deal. Just wanted to understand any peak net debt to EBITDA number that you might have in mind. I know that the balance sheet is very robust to support such an acquisition. But just wanted to understand your thoughts on it, that in case we leverage our balance sheet, how soon we are going to get rid of this additional debt on the books.
Yeah. Since the question is related to what will be the leverage position of Solar as a whole after the acquisition gets over, definitely we cannot just answer by saying that what will be the multiple. Before that, we need to understand the basic fact that what Omnia is doing at present, what Solar is doing, and what they are going to do in next two years. If you look at Omnia's current cash generation in the business, if you take the profit after tax and depreciation, it is around $110 million, and based on FY 2026 results. Going forward, based on our internal estimation, without taking any synergy benefits, they should be reaching around, or they will be doing around $180 million of EBITDA.
If you take this figure and if you take Solar's current year's projection of around INR 14,000 crore of top line with the EBITDA of, say, around 28%, 29%, and if you just add around 17%- 20% growth for FY 2028. Solar will reach to, say, around INR 16,500 crore. If you multiply that revenue with the 29% margin, that EBITDA, along with Omnia's EBITDA of around $180 million without synergy, will reach us to around INR 6,600 crore, INR 6,700 crore. If you add the synergy benefits and operational efficiencies together, we should be able to reach around INR 7,000 crore on EBITDA level. Based on this EBITDA projection, which we are trying to achieve, if you factor in the acquisition debt plus the regular debt which we have, could be around INR 10,000 crore-INR 11,000 crore by FY 2028.
In any situation, if you take the EBITDA and debt position, it will always be lower than 2x. That is the current estimation based on our working, what we have done as of now.
Wonderful, sir. Very clear. Thank you so much, and all the best.
Thank you.
Thank you. The next question comes from the line of Subhadip Mitra with Nuvama. Please go ahead.
Good morning, and thank you for the opportunity. I hope I am audible.
Yeah. You are audible. Please go ahead.
Perfect, sir. Just wanted to dive a little deeper that with regard to the synergies that you are mentioning which will benefit, I think, the consolidated entity post the acquisition. How are you seeing these synergies pan out? Any potential range of EBITDA margin for the consolidated entity? Could you see some higher benefits on the exports piece, whether it is on the margin front or on top line?
So if you look at what I answered just now, basically the revenue of Solar and Omnia together in FY 2028 could be +INR 30,000 crore. And if you take EBITDA of INR 6,800 to, say, INR 7,000 crore, which we are targeting, that will give you a range of 22%-23% on EBITDA margin percentage. But if you look on the real incremental advantage of this acquisition, last year the EBITDA of Solar was, say, around INR 2,700 crore, which is precisely INR 2,750 crore. And if you look at INR 7,000 crore in FY 2028, so in just two years, the EBITDA has increasing from almost INR 2,750 to almost INR 6,800 crore-INR 7,000 crore. So it's a big jump as far as the EBITDA numbers are concerned. And even if you look at EBIT numbers, in 2025, 2026, Solar was around INR 2,500 crore.
And if you just do the math of combining the Omnia with Solar, the EBIT level will be around INR 6,000 crore plus. So those are the margins that will achieve by Solar and Omnia combined entity. And that gives a trajectory at how Solar is moving towards.
Perfect. This is amply clear. Is there any additional, let's say, lever on margins or on exports which can happen, which let's say is not built into the current projections?
Yeah. Basically, like I said, if you look at the overall strategic asset which we are building in the system, which creates a top-class, state-of-the-art ammonium nitrate manufacturing facility. On top of that, the kind of agrobiostimulant and agritech platform which the company have. If you combine these together, along with the kind of knowledge and expertise which is available within the Omnia, is quite significant. And if you add the Omnia's and the BME's current distribution network, and if you add the Solar distribution network on top of that, our distribution presence will increase to more than 100 countries. And manufacturing presence which we have as of now is in 11 countries, so that will expand to 25 countries. So we have been saying for many years that this kind of geographical diversity and presence across the globe is helping our company.
That is the belief we have as of now, and the same reason was there to have this kind of acquisition opportunity. With the kind of scale facilities they possess, it definitely gives a strategic advantage for Solar as a group to position itself as one of the most strongest player in that region. That is the basic rationale, and that is going to help us in even increasing exports from India to that region and even other portions of the global markets.
Understood, sir. Thank you so much. That amply answers my question.
Yeah. Thank you very much.
Thank you. Ladies and gentlemen, you are requested to limit your questions to two per participant. The next question comes from the line of Sanjaya Satapathy with Ampersand Capital. Please go ahead.
Yes. Hi, sir. Thanks a lot for the opportunity. My question is relating to one part of the business that is the agriculture which is going to be a little bit unrelated to your current operation. Can you just help us think about that part?
Yeah. Basically, definitely it's a perception that Omnia has an agri business. Yes, there is no doubt about that. But we are looking at this business vertical as an additional complementary business vertical, which is a technology-driven integrated crop nutrition, biological and biochemical products and services which they provide. If you look at the advantage which they have in the form of the knowledge of the soil studies, which they do from last so many years, adds a lot of benefit to that. Definitely it's a new vertical for us, but definitely it adds complementary support to the Solar ambition of becoming a global explosive company. Definitely, it's a complementary business vertical, and if you add the technology strength of Solar with the Omnia, definitely we will see lot of improvement in the business as a whole.
Understood. Sir, if I can just ask two questions quickly. One is that, is there any possibility of you funding it by equity issuance? The second one is that does it anywhere dilute your focus on the new growth vertical that is defense?
Basically, as far as dilution is concerned, definitely no, because we have been spending into the defense when nobody was looking into this section. Over last 15 years, we have created one of the most integrated defense facilities across the world. Going forward, we have announced a CapEx program of around INR 12,000 crore two years back, and we are working on that program quite aggressively. If you look at the product portfolio, which we have lined up till now, and with the products which are likely to come up in next couple of years, it's quite significant. Definitely our focus and our capital allocation for defense will not go down. Rather, as we move forward, it is going to go up and up.
Understood, sir. Is there any possibility where equity issuance by Solar to fund this acquisition?
We are not planning to raise any equity through any kind of dilution in any of the parent company or subsidiary. We are quite comfortable to manage these acquisitions through our internal accrual and debt, which can be available to Solar.
Thank you, sir. Thanks a lot, sir, and all the very best.
Thank you.
The next question comes from the line of Pinakin Parekh with HSBC. Please go ahead.
Thank you very much. Sir, you clarified that the agriculture segment is a new segment that you are effectively entering driven by the acquisition of Omnia. Would that segment remain only in South Africa or are you looking to expand in the agriculture fertilizer business across India as well?
It is too early to comment on this question. Like I said that the kind of business which Omnia do is in agriculture, but that is not a purely agriculture play. It's a technology-driven product which they have started rolling over in last couple of years. The kind of growth they have seen in one of their product is quite promising. We would like to utilize these knowledge-based products across the world. Wherever we are present, we would like to utilize this strength which Omnia possess. But we have no intention as of now to expand agriculture business into the Indian market.
Got it, sir. My second question is that this acquisition value of INR 1.35 billion, that number, all cash transaction, would there be a leverage at the acquired entity because at INR 180 million EBITDA without synergy, with synergy, it can also support a debt? Or would effectively that entire debt related cash outflow come at the Solar standalone entity?
As of now, what we have planned is basically that we have to utilize the strength of Omnia's balance sheet which has a cash surplus position in the account. On top of that, we will definitely take debt on Omnia's books, and wherever there will be any shortfall, that will be arranged through the company which is acquiring the Omnia Holdings. It will be a structure which we will definitely finalize as we move forward. We will be waiting for the approval from shareholder and statutory body before we give a concrete structuring program.
Got it, sir. Lastly, sir, do you have any target net debt to EBITDA number in mind which you would not want Solar to cross over the next two years?
Like I said, by the end of FY 2028, the EBITDA should be in the range of INR 6,800 crore- INR 7,000 crore. The kind of cash generation in next two years will definitely help us to acquire Omnia Holdings, plus continue our defense CapEx program. We believe that in any situation, the debt will not cross the 2x of EBITDA generation.
Got it. Thank you very much, sir.
Yeah. Thank you.
The next question comes from the line of Bharat Shah with BCS Capital Ideas. Please go ahead.
Hi, Manish. Hearty congratulations, and I am glad that you have chosen to fund it by borrowing rather than by what may sound an easier option of raising equity. But I think funding it by borrowing shows skin in the game and the confidence about making it work. I am really glad that you have chosen to fund it by borrowing rather than by raising equity. Just a couple of things. You mentioned that FY 2028, our consolidated turnover will be over INR 30,000. But I would have thought it should safely be INR 34,000-INR 35,000, based on whatever are the Omnia numbers and kind of guidance available for the future.
Good morning, Bharat Ji. Thank you for the compliment, sir. And like I said, that the whole acquisition will be through the debt at the level of the company, Omnia, and balanced within the Solar Group company. It is a total debt funding program with internal accruals helping on this acquisition. As far as top line is concerned, like we have said, in this year, the Solar should be able to reach around INR 14,000 crore. And even if I add 17%-20% growth rate in the 2027, 2028, we should be doing INR 16,500 crore. And as far as Omnia is concerned, last year they have INR 13,300 crore of top line, and we are factoring that in 2027, 2028. At least they should do INR 15,000 crore plus.
Combined together will be around INR 31,000 crore-INR 32,000 crore rather than INR 33,000 crore-INR 34,000 crore.
Okay. You also mentioned that INR 7,000 crore of EBITDA and over INR 6,000 crore of EBIT. I would have assumed that depreciation probably will not be more than consolidated about INR 700 odd crore, unless I have got something wrong.
No, sir. What I mentioned that EBITDA should be in the range of INR 7,000 crore, which I said INR 6,800- INR 7,000. If you reduce the depreciation that is around INR 700, so it is INR 6,300 crore on EBIT level.
Right. Perfect.
Yeah.
And in what time frame do you think the debt is likely to get paid off?
That depends on our financial planning. But otherwise, EBIT level INR 6,300 or INR 6,200 every year, at least in 2027, 2028. The interest cost will be in the range of, say, INR 1,000 crore or INR 1,100. So the profit before tax should be in the INR 5,000 crore plus level. So based on this, we can do our own calculation that when debt can be repaid. But the plan of the company is not just to look at the debt-free level for us, but definitely we are working to expand our explosive business aggressively. At the same time, defense vertical also, we have already lined up a lot of CapEx for this section. As we move forward, as long as we are below 2x level of EBITDA, we are quite comfortable, sir.
Okay. Would you say that purely mining and non-agri business alone, because I believe the margins there are higher than the agri business. Mining business alone probably could have justified the acquisition?
Sir, basically, these are strategic discussions, and company takes a decision by combining all the dots. So the final is like that. They will be producing so much of revenues and so much of EBITDA at their level. So by factoring in the quality of assets and the management they have, and the market penetration they already have, which has been developed over the last 70 years, so we believe that it is going to be a strategic asset for Solar as a group, and that was the key rationale for us before we jumped into this decision. If you look at their mining business, definitely, sir, in next couple of years, definitely should be doing more than INR 7,000 crore.
And if you look at Solar's last year top line, that was around, say, INR 10,000 crore, and if you remove the defense, that was in the range of INR 7,500 crore. So definitely achieving INR 7,500 crore has taken 28 years of our work. And just in two years, if we develop the business from mining, that makes plenty of sense. And if you look at the global margins and the way Solar operates, definitely gives us a lot of room to take such kind of strategic decision to acquire such kind of companies. And the best part, sir, the quality of assets and the clean balance sheet and the strong management. Those were the key factors which has inclined us to take this call.
Excellent. One last thing. Digesting any such thing which is materially large in several countries and spread over several distribution points, while strategic advantage of backward integration, forward integration, de-risking the overall business by aiding non-mining vertical is well. All these are clear. What in your mind could be the worries, if something were to bother you or to concern you? What will be the watch points?
Sir, as of now, if you look at last 30 years of journey, we have been expanding at an aggressive pace. And since our listing in 2005, the company has expanded aggressively and expanded its global footprint, expanded business, and even entered into the defense vertical. So the point is, we will keep generating the margin around 18%-20%, even before defense comes up. And as far as Solar is concerned, all these margins were without the backup of the critical raw material, which is ammonium nitrate. But we have handled the overall supply chain quite well, effectively in our favor. But having such kind of assets definitely help us. So as a company, having the presence in different business verticals across the globe definitely is a challenging task. So managing the people, managing the country risk is definitely risk factors which anybody can assume.
But we have been managing these kind of factors from last 15-20 years. So I'm confident we will be able to handle this. But business is business and always there will be risk. But at the same time, the opportunities which will bring up to our table is what we look at.
Absolutely. Thank you and all the best again, Manish.
Thank you.
To you and [audio distortion]
Thank you, sir.
Thank you. The next question comes from the line of Chirag Muchhala with Centrum Broking. Please go ahead.
Yeah, thank you for the opportunity, and congratulations to the Solar team for this milestone acquisition. Sir, first question is on this nitric acid and ammonium nitrate production as well as storage facilities. Of course, sir, we know the critical importance of it, but if you can just elaborate a bit more in the present global context, how much have these facilities being in-house will help in terms of supply chain as well as possibly lower pricing for both Solar's business as well as Omnia?
Like I said, this company have a high quality asset, a very large manufacturing facility which can produce a variety of nitrate-based solutions, and one of them is ammonium nitrate. Having ammonium nitrate, having large manufacturing presence in explosives backed up by initiating systems and down-the-hole services or blasting solutions definitely creates a lot of synergy benefit for Solar as a company. That is what we looked into the deal.
Okay, sir. In terms of some new countries, as the presentation of Omnia states, they are large in countries like U.S.A., Canada, Brazil where we are not present currently. Post acquisition, does it immediately add export potential for Solar's products in initiating systems and even packaged explosives? If you can highlight, considering it is a long gestation time to start operations in a country in this business.
Exactly. That is what we have also looked into. If you try to enter into a new geography, it takes four or five years to really establish ourselves. That is what Omnia or BME was also doing in last couple of years. In last six, seven years, they have turned around their company from a stressed balance sheet to a cash-generating strong business. They were expanding in a couple of countries, which includes Canada, Australia, Indonesia, United States. The distribution presence of our group as a Solar will increase from current 90 countries to more than 100, which will be around 110 countries, and manufacturing base increasing from 11 to 25+ countries. These kind of things will definitely help Solar to increase its exports into these markets.
At the same time, having a strong team across the world definitely will help us our defense business also. These are the advantages which is coming up through such kind of acquisition.
Okay, sir. Sir, in packaged explosives, do they have a very wide portfolio like us, or even that is a product gap for us to explore?
That is also an added advantage for Solar. Solar is the largest producer of packaged explosives in the world. Having such kind of strong distribution presence of BME into the system, we would be able to leverage the strength of Solar also, Solar's product into this vertical. Having presence across the world will help us to increase our sales of these products, which is package and initiating system.
Okay. And sir, just finally one clarification. Sir, since Omnia is listed on Johannesburg Stock Exchange, so as per that country's norms, will our acquisition result in 100% stake acquisition including it listed, or there is also a scenario where we can end up with a lower 60%, 70%, 80% stake if some shareholders does not tender shares?
We have made an agreement for buying 100% stake, and like we said, subject to the approval from the shareholder and government authorities. So let us wait for that.
Okay, sir. Thanks.
Thank you.
The next question comes from the line of Bhavin Vithlani with SBI Mutual Fund. Please go ahead.
Good morning, Manish. Congratulations.
Good morning, Bhavin.
Manish, couple of questions, and pardon me if they are repeated because I joined in a little late. Could you help us understand, post the acquisition, what would the market share for Solar increase in markets like South Africa, the North America market, and the Brazilian market?
Like we have been saying that Solar was working in African continent from last 15 years, and the overall revenue which is from Africa is around $300 million. Omnia's majority of mining business come from Africa. Africa means South Africa and nearby countries in West Africa. If you club together, definitely the current level of $300 million will reach to $900 million- $1 billion sale from African market itself. Apart from this, we will be increasing our market or sales into the new territories where they have entered. That will be a complementary to the overall mining business of Solar. As far as market share, we don't have the numbers as of now because these data are not well published across the world. We have to just estimate. But finally, it's what Solar is doing.
From $300 million, we will be reaching to almost $1 billion from mining business in Africa.
Sure. Second follow-up is, the non-mining business of Omnia, any strategy that you would like to share with us? Would you like to divest or you would like to continue and grow that business?
Like I said that, as far as the agriculture business of Omnia is concerned, these are the strategic assets which add complementary benefit to the Solar as a company. That brings complementary business compliment because they have ammonium nitrate, nitric acid facility, and they have a strong presence in SADC region. If you combined those complementary assets with our larger perspective of enhancing the business from mining segment, it adds plenty of value. Since it's a complementary business vertical and they also provide lot of technology-driven crop nutrition, biological and agritech solutions to the large farmers, it adds value. As long as it is adding value for our shareholders, we will be continuing with this business. If you add the Solar strength with the Omnia strength, definitely it will be going to add value for us.
Sure. Certainly. The last question is, Solar's margins are considerably higher than Omnia. When you look through in detail, without alluding into intricacies, do you see there is a significant headroom for you guys to take the margins up maybe to mid-teens levels over a next three to four year basis?
Yeah. If you look at, Bhavin, the global scenario on explosives, the margins are in the range of 18%-19%, by and large. If you look at the current EBITDA margins of BME is around 13%-14%. If you consider the kind of synergetic benefits in the form of ammonium nitrate to Solar also, in the form of initiating system sales from Solar to BME, if you combine these with the down-the-hole services through ProBlast, definitely these combined together, the strength combined together will help us to enhance the margins of BME and Solar together in that region. So definitely, we see a lot of headroom in enhancing the margin into the explosive business.
The last question is now, when you look through the global map, do you see any white spaces? I think Australia is one where Solar will be under-indexed. But any other geography that you see that Solar is under-indexed and where you will now put in effort to grow that geography, maybe organically or inorganically?
As of now, our focus was on India and expanding footprints in Africa by and large. So most of our overseas business come from Africa. If you look at our clear strategic map, we are focusing on India and Africa as a continent. So this acquisition will help us to enhance our, or strengthen our market presence. So there is enough headroom available for us to increase the business further. So we will be focusing on these two markets significantly. Apart from these two, wherever we get opportunities where we can leverage the strength of Solar and BME, definitely we will look into those things. But by country-specific, Australia, BME is doing some sales of their initiating system, and we are also going to start some of the operations. But Australia is not in our immediate strategic roadmap, where we will be spending a lot to expand our market presence.
We are focusing on India and Africa as of now.
Great. Thank you so much for taking my questions. Once again, congratulations.
Thank you, Bhavin.
Thank you. Ladies and gentlemen, due to time constraint, that was the last question for today. I now hand the conference over to the management for their closing comments.
Thank you. We appreciate the thoughtful questions and the constructive engagement from the investment community. On behalf of management, I would like to thank you all for your participation and support. Thank you, and have a great day ahead.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.