Adani Group readies Rs 7,000 crore war chest to dominate India's ammunitions market

The Adani Group is planning to significantly scale up ammunition production at its facility in Kanpur

The Adani Group subsidiary Adani Defence and Aerospace is planning to invest at least Rs 7,000 crore towards its ammunitions production facilities in Kanpur as it plans to fulfil around 25 percent of India's requirements across the armed forces, central forces, state police and other special forces, senior company officials said at a media briefing.

At its 500-acre facility near Kanpur, at the Uttar Pradesh government's purpose-built defence corridor, Adani Defence is currently manufacturing small caliber ammunition of multiple dimensions, with a current capacity of 150 million rounds per annum, scalable to 500 million rounds.

Ashok Wadhawan, the Group's head of land systems, defence, and aerospace added that the firm is also planning to manufacture medium and large caliber ammunition at the facility. The large caliber ammunition facility is expected to be operational in the next few months, while the medium caliber ammunition plant may be ready for production from Januray 2027.

Also on the company's agenda is backward and forward integration in explosive materials, known as primers and propellants, with explosives in India being in short supply, and earlier suppliers from overseas now bailing or pushing back supply commitments due to a need to fulfil their domestic needs.

The only major supplier of explosive materials in India is the public sector firm Munitions India Ltd, which has limited production capacity, and also has export commitments. Wadhawan admitted that shortage in energetics as one of the reasons for its decision to go for further integration in its products.

"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. There are places from where export authorisations have been difficult due to them meeting their own needs, such as in Europe, because their supply chains are tied up in meeting their own needs. Because some countries said no (to supply), we developed the product in India over nine months," Wadhawan said.

While supplies to Indian armed forces are on the anvil, the company has been supplying ammunition to countries in Europe, as well as countries in Asia.

In other weapons grades, such as drones and loitering munitions, the firm has already supplied such weapons systems to the Indian armed forces, and saw use during Operation Sindoor. The company has also extensively hired to build up capacities in arms and ammunitions, including around 400 veterans of the armed forces, to help in the development of small arms, rifles, ammunition, drones, and electronic warfare systems.

The firm also pointed out the changing nature of warfare, pointing to Operation Sindoor, the Gaza War, and the conflict between Russia and Ukraine, about the need to scale up technology for offensive reasons, beyond surveillance and intelligence gathering. Adani is developing drones at its Hyderabad facility, and also has a joint venture with Israeli firm Elbit Systems for the technology.

Wadhawan said that the firm remains open to research and development (R&D) partnerships in the weapons segment, but will also insist on technology transfers and production partnerships.

"We have tied up with the Defence Research and Development Organisation (DRDO), 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. We are working with firms in France, Israel, Russia, and elsewhere," he said.

(Disclaimer: The reporter was in Adani Defence and Aerospace's facilities in Kanpur at the company's invitation)