Adani Group Lines Up ₹7,000 Crore Ammo Push to Target 25% of India’s Ammunition Demand
By Shishta Dutta | Published at: Nov 18, 2025 01:37 PM IST
Ahmedabad, November 18: Adani Group’s subsidiary, Adani Defence and Aerospace, is setting aside at least ₹7,000 crore to expand its ammunition business at a 500-acre facility near Kanpur. The initiative aims to supply 25% of India’s ammunition needs, serving the armed forces, central forces, state police, and specialised units.
Kanpur Plant to Ramp Up from 150 Million to 500 Million Rounds
Adani Group is currently producing small-caliber ammunition in multiple dimensions at the Uttar Pradesh government’s defence corridor near Kanpur. Currently, the complex has an installed annual capacity of 150 million rounds, which can be increased to 500 million rounds.
However, the company has announced that it is now moving into larger weapon grades:
| Parameter | Current Status | Planned Scale / Timeline |
|---|---|---|
| Facility size | 500 acres, Kanpur defence corridor | Existing |
| Product mix | Small-caliber ammunition | Medium and large caliber also planned |
| Small caliber capacity | 150 million rounds per annum | Scalable to 500 million rounds per annum |
| Large caliber facility | Under implementation | Expected to be operational in the next few months |
| Medium caliber ammunition plant | Under planning | Targeted start of production January 2027 |
Reducing Dependence on Imported Explosive Materials
One of the main points in the company’s strategy is to reduce its dependence on imported explosive materials. Ashok Wadhawan, the group’s head of land systems, defence and aerospace, said: “There is a huge shortage of energetics. Even if you book orders outside the country, the delivery may be in 2027. Fortunately, we have booked capacities with multiple players outside in order to sustain.”
Company Eyes Indian Forces Orders
The company has already secured significant domestic orders from the Indian armed forces and other security agencies. However, Adani Defence has already started developing its export franchise. The firm is supplying ammunition to customers in Europe and in other parts of Asia, according to company executives.
Drones, Loitering Munitions and Operation Sindoor Experience
Beyond ammunition, Adani Defence has already supplied drones and loitering munitions to the Indian armed forces. Some of these systems were used by Indian Armed forces during Operation Sindoor. The company has already hired around 400 veterans from the Indian armed forces to ensure it has the expertise for the expansion. The group is developing drones at its Hyderabad facility, and also operates a joint venture with Israeli company Elbit Systems for advanced technologies in unmanned and weapons platforms.
R&D Partnerships With DRDO and Global Defence Majors
The company has also signed many partnerships as part of its strategy. The company already has a design cum production partnership with the Defence Research and Development Organisation (DRDO). “We have tied up with the Defence Research and Development Organisation, with the partnership going back a couple of years, it being a design-cum-production partnership. To augment that capability, we are talking to firms in multiple countries, but only partners who can support and give technology to be made in India,” Wadhawan said.
With the company’s high investment in defence, it is expected that the company will be able to cater to the rising demand of ammunition from the Indian armed forces. It remains to be seen how the company uses the funds once raised.
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
