SBL Energy Expands Mining, Defence Manufacturing to Reduce Import Dependence

SBL Energy is all set to expand its mining and defence-linked manufacturing reflect a broader shift underway in India’s industrial landscape, where supply security and self-reliance are becoming as important as scale. "For the company, diversification is not opportunistic but rooted in a clear understanding of gaps within critical supply chains tied to infrastructure, energy, and defence," said Alok Choudhari, CEO, SBL Energy.

In an interview with ResponsibleUs, Choudhari said, "The expansion into mining and the commissioning of a new TNT plant are driven by the need to reduce India’s dependence on imports in sensitive industrial segments. He explained that the company is examining new opportunities through a tighter filter, weighing how closely they align with its strengths in energy, engineering, and industrial operations, and whether they make sense in the long term. While areas like cement and hydropower do come up in discussions because of their link to mining and explosives, Choudhari said the company is cautious. Expansion, he said, will happen only where the business fit is clear, and the scale makes commercial sense.

Sustainability, which once sat on the sidelines in heavy industry, is now shaping day-to-day decisions on the shop floor. In mining and explosives, this shows up in the choice of technology as much as in how plants are run. At SBL Energy, work is underway on developing cleaner explosive formulations and increasing the use of electronic detonators to cut vibration and improve safety during blasting. Within its facilities, the company is also moving towards greener power and using IoT-based systems to track energy and resource use more closely. There is no formal ESG roadmap yet, but these steps reflect a gradual shift towards meeting tighter regulatory norms and operating more efficiently in a closely regulated sector.

A significant milestone in this journey has been the commissioning of SBL Energy’s 3,000-tonne-per-year TNT plant in Nagpur, built primarily to serve export markets. Choudhari sees this facility as a concrete contribution to India’s industrial self-reliance, particularly in defence manufacturing. By producing TNT domestically, the company is helping reduce reliance on overseas suppliers while strengthening supply security for strategic applications. At the same time, the export focus of the plant has opened doors to international markets in Europe, the United States and Australia, positioning the company as a supplier of critical materials beyond India’s borders. The company is also evaluating similar projects in the future to deepen its presence across industrial and defence segments.

Operating in the explosives sector brings its own set of challenges, from regulatory complexity to raw material volatility and logistical risks. SBL Energy’s response has been to invest heavily in process reliability and compliance. Its Yenvera facility works in technical collaboration with the Central Mining Research Institute, strengthening quality control and R&D capabilities. 

When discussing the exposure of material, he said that the company keeps a close watch on its exposure to key raw materials such as PETN and ammonium nitrate and builds these risks into its planning. Regulation and licensing do add complexity, Choudhari acknowledged, but they also work as natural entry barriers. For companies that follow safety and compliance norms strictly, this brings a level of stability. Steadily expanding capacity, rather than rushing growth, also helps the company stay flexible when supply chains come under pressure.

SBL Energy is looking to the future. They have a main thing they want to do. Technology is going to be a part of SBL Energy's plans. They want to use machines to do some of the blasting work. SBL Energy will use information to make sure the rocks break into the right-sized pieces. They will also use detonator technologies to make blasting more accurate and safer.

SBL Energy thinks they will keep doing work in mining and infrastructure. They also want to start doing work in areas like cement and hydropower. In these areas, controlled blasting is very important for SBL Energy. The company wants to sell more of its TNT products in other countries. It plans to work with companies in other countries to do this. The company has some money that it will use to help it grow and try new things with its TNT products.

That capital infusion, amounting to Rs 325 crore from marquee investors, is being channelled into expanding manufacturing capacity within India and supporting the launch of new products. The focus, Choudhari said, is on meeting rising demand while strengthening the company’s technological edge.

In a market crowded with competitors, SBL Energy’s differentiation lies in its emulsion-based explosives, in-house R&D, and a service-led approach that includes technical solutions and blasting guidance for clients. "Safety, a non-negotiable in this sector, remains a defining pillar through the use of advanced initiation systems and strict operational controls," said the CEO.

During the discussion on SBL Energy's five-year vision, Choudhari emphasised that the company would look to grow its scale with a purpose. He envisions SBL Energy turning into a globally reliable company for technology-based explosives and mining solutions—one that actually supports the self-reliance of India, grows its presence in other countries, and sets new standards for safety, sustainability, and manufacturing excellence.