Adani Group Sets Aside ₹7,000 Crore to Boost Ammunition Production

The Adani Group is strengthening its position in India’s defence manufacturing sector with a ₹7,000 crore investment aimed at expanding ammunition production. The company is focusing on its 500-acre facility near Kanpur, which currently serves as the main hub for Adani Defence’s ammunition operations.

Adani Group Aims to Produce 500 Rounds of Small-Calibre Ammunition at Kanpur

The Kanpur plant is central to the Group’s small-calibre ammunition manufacturing programme. At present, the facility produces around 150 million rounds each year. Adani plans to scale this significantly, targeting an output of 500 million rounds annually in the coming period.

The plant is designed with scalability in mind, allowing production lines to expand as demand increases. This flexibility will help the company cater more effectively to the domestic market, where the need for locally manufactured ammunition continues to grow.

Moving Into Medium and Large-Calibre Ammunition

Beyond small-calibre rounds, Adani Defence is preparing to enter the medium and large-calibre ammunition segment. The company expects its large-calibre production to become operational in the next few months. The medium-calibre manufacturing line is expected to be ready by January 2027, marking another major step in the facility’s expansion.

This move will allow Adani Defence to serve a wider range of requirements within India’s defence ecosystem, increasing self-reliance in critical equipment.

Challenges in Explosive Material Supply

One major challenge facing the expansion is the shortage of explosive materials within India. The only major domestic supplier, Munitions India Ltd, has limited capacity and also manages export obligations. This has led to supply constraints for defence manufacturers.

To address the issue, Adani Defence has begun securing capacities from multiple international suppliers. In some cases, it has also started developing components domestically, strengthening its supply chain and reducing dependence on foreign approvals.

Broader Defence Expansion: Drones and Global Partnerships

The Group is also strengthening its position in new defence technologies. It is building drones at its Hyderabad facility and working with Israel’s Elbit Systems on advanced systems. The company is open to further global collaborations that provide technology transfer and support local production.

Adani Defence already works closely with the Defence Research and Development Organisation (DRDO) under a design-and-production partnership. Discussions are also ongoing with firms in France, Israel, Russia and other countries to support next-generation manufacturing.

Read more: Electric Vehicle Retail Sales Rise Sharply in October: Passenger EVs Up 57%.

Conclusion

Adani Group’s ₹7,000 crore investment highlights its commitment to expanding India’s defence manufacturing capabilities. With higher ammunition production, new calibres, drone technology, and international partnerships, the company aims to play a major role in strengthening India’s defence ecosystem. The expansion also supports the broader goal of increasing domestic production and reducing reliance on imports.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.