Adani Defence to invest additional ₹10,000 crore to scale up manufacturing

Adani Defence & Aerospace, a part of Gautam Adani-led Adani group, is gearing up for a major expansion across key ammunition and defence manufacturing segments, with plans to triple its investment over the next few years, according to a company official.

The group plans to invest ₹10,000 crore across different business lines in defence and aerospace over the next few years. This comes on top of the ₹5,000 crore the conglomerate has already invested in its defence businesses.

“Adani Group has already invested around ₹5,000 crore and plans to invest ₹10,000 crore across different business lines in defence and aerospace over the next few years,” said Ashok Wadhwan, head of Land Systems, Defence and Aerospace at Adani Group.

At present, the company manufactures cups, cases and projectiles for small-calibre ammunition at its 500-acre Kanpur facility in Uttar Pradesh, which has an annual production capacity of 300 million rounds.

The medium calibre ammunition, which is expected to be operational by January 2027, will have an annual capacity of 8 million rounds. The large calibre ammunition will be operational early next year with an annual capacity of 3 lakh rounds. Besides, the company plans to operationalise its primer and propeller plants by 2027, according to Wadhwan.

“Adani Defence is also expanding its manufacturing footprint. At its Kanpur site, the plot size has been scaled up to 750 acres across ammunition, missiles and energetics facilities,” Wadhwan said.

He further said that the Hyderabad plant, spread over 20 acres, is also being ramped up across unmanned systems, electronic warfare and loitering munitions.

He added that the focus is to first serve the demand of the Indian Armed Forces, with the rest earmarked for exports. “Once these plants are fully operational, we won’t need to import anything. Our supply chain will be 100% indigenous.”

The fresh investment will be directed toward scaling up manufacturing capabilities, advanced technology development and new product lines across unmanned systems, aerospace components and defence equipment. The group is also expected to strengthen its partnerships with global defence majors to bring high-end technologies to India.

He highlighted that post “Operation Sindoor”, the demand for drones, counter-drone systems, loitering munitions, missiles and ammunition has increased. These areas have been part of the company’s strategic roadmap, along with other capabilities including unmanned underwater vehicles (UUVs) and artillery guns.

Formed in 2017, Adani Defence is the flagship defence company of the Adani Group, with a focus on manufacturing defense drones, arms, and counter-drone systems. In February 2024, Adani Defence launched two mega facilities to manufacture ammunition and missiles in Kanpur.

Adani’s growing commitment comes at a time when the government is pushing for stronger domestic defence manufacturing under the “Make in India” and “Aatmanirbhar Bharat” initiatives.