Adani Group loads a ₹7,000 crore arsenal to dominate India’s ammo industry: Report

Adani Group has set aside Rs 7,000 crore to strengthen its position in India’s ammunition market. The company’s current efforts are concentrated at its 500-acre facility near Kanpur, where Adani Defence is manufacturing small caliber ammunition across multiple dimensions. The facility is presently producing 150 million rounds per annum, with plans to scale up operations to reach 500 million rounds each year.

The Kanpur facility is central to Adani Defence’s ammunition manufacturing strategy. The company is expanding its production capabilities to serve the domestic market more effectively, Moneycontrol reported.

The 500-acre Kanpur site continues to serve as the manufacturing base for Adani Defence’s small caliber ammunition. The facility’s scalable nature is designed to accommodate the planned increase in production volume.

Adani Defence’s current manufacturing involves a range of small caliber ammunition. The facility’s capacity for multiple dimensions of rounds positions it to meet a broader set of requirements.

The present annual output of 150 million rounds demonstrates Adani Defence’s established role in the sector, with the scalability plan marking its growth ambitions.

Scaling up to 500 million rounds per annum is a key component of the company’s war chest allocation. This expansion is intended to triple the facility’s output over the coming period.

Ashok Wadhawan, the Group head of land systems, defence, and aerospace, said that the firm is also planning to manufacture medium and large caliber ammunition at the facility. He added that the large caliber is likely to be operational in the next few months whereas the medium caliber plant is expected to be ready from January 2027. 

The big hiccup, however, is that the only major explosive materials supplier in India is the PSU Munitions India Ltd. Munitions India has limited production capacity and also has export commitments. Wadhawan said the shortage in energetics is one of the reasons that the Group has decided 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.