Whalesbook
Adani Defence and Aerospace plans to significantly scale its capacity and triple investment to ₹15,000 crore over the next few years. The company aims to boost annual production of small calibre ammunition to 500 million rounds and introduce medium and large calibre ammunition plants, enhancing India's indigenous defence manufacturing capabilities and reducing import reliance.
Adani Defence and Aerospace, a division of the Adani Group, is set to dramatically expand its operations. A senior company official revealed plans to triple investment in the defence and aerospace arm over the coming years, bringing total capital expenditure to ₹15,000 crore, compared to the ₹5,000 crore already invested. The division, which currently has an order pipeline valued at $1.2-1.5 billion, manufactures unmanned systems, counter drones, small arms, accessories, and ammunition.
Immediate focus is on scaling up the small ammunition facility in Kanpur. The goal is to double the annual capacity for small calibre ammunition to 300 million rounds by mid-2025, eventually reaching a full capacity of 500 million rounds. Additionally, medium calibre ammunition production is slated to begin in January 2027 with an annual capacity of 8 million rounds, and large calibre ammunition production will start early next year with a capacity of 3 lakh rounds. Primer and propeller plants are expected to be operational by 2027.
The primary objective is to bolster India's indigenous defence manufacturing capabilities. Adani Defence aims to meet all domestic demand for ammunition, thereby eliminating the need for imports and establishing a 100% indigenous supply chain. Currently, it supplies about a quarter of India's annual ammunition needs.
The company is also expanding its physical manufacturing base. The Kanpur facility has been expanded to 750 acres for ammunition, missiles, and energetics. The Hyderabad plant, covering 20 acres, is being ramped up for unmanned systems, electronic warfare, and loitering munitions.
Ashok Wadhwan, Head Land Systems, emphasized that the vision, set by chairman Gautam Adani, is not merely commercial but focused on building national defence capability. The company's loitering munitions and counter drones have previously been deployed by Indian armed forces.
Impact
This expansion will significantly boost India's self-reliance in defence manufacturing, potentially reducing import costs and increasing export opportunities. It signals strong growth potential for the Adani Group's defence vertical.
Impact Rating: 8/10
Difficult Terms Explained:
Unmanned Systems: These are vehicles or devices that can operate without a human pilot or crew, often remotely controlled or autonomous. Examples include drones.
Counter Drones: Technology designed to detect, track, and neutralize or disable enemy drones.
Small Calibre Ammunition: Refers to bullets or shells typically used in small arms like rifles and pistols, usually less than 20mm in diameter.
Medium Calibre Ammunition: Ammunition generally ranging from 20mm up to 90mm, used in weapons like automatic cannons and some larger machine guns.
Large Calibre Ammunition: Ammunition typically over 90mm, used in artillery, tanks, and naval guns.
Loitering Munitions: A type of drone that can stay airborne for an extended period, search for targets, and then attack them. They are often called "suicide drones."
Energetics: Materials that contain stored chemical energy, such as explosives and propellants, used in ammunition and pyrotechnics.
Indigenous: Produced or originating within a particular country.
Capital Expenditure (Capex): Funds used by a company to acquire, upgrade, and maintain physical assets like property, buildings, technology, or equipment.
Operational Pipeline: The total value of orders that a company has secured or is expected to secure in the near future.
Primer: A small component within ammunition that ignites the main explosive charge.
Propellant: The chemical substance that produces the expanding gases needed to fire a projectile from a weapon. (Note: The term "propeller" might be a typo for "propellant" in the source text, as propellants are crucial for ammunition manufacturing).
