Apollo Micro Systems has announced the acquisition of IDL Explosives Limited from Hinduja Group’s GOCL Corporation for ₹107 crore, marking a significant strategic expansion into the defence manufacturing sector. The agreement, signed on May 2, 2025, is expected to be finalized within two to three months, pending regulatory and corporate approvals.

IDL Explosives, established in 2010, is a prominent Indian manufacturer of industrial-grade bulk explosives, primarily serving the mining and infrastructure industries. In FY24, IDL posted a turnover of ₹623 crore, accounting for 87% of GOCL’s consolidated revenue, though its net worth stood at ₹10 crore. The company’s revenues have been volatile in recent years, reflecting the cyclical nature of its core markets.

Through this acquisition, Apollo Micro Systems will acquire 100% equity in IDL Explosives by purchasing 78.65 lakh shares at ₹136.04 each. The transaction is not a related party deal, ensuring transparency and regulatory compliance.

The move allows Apollo to integrate explosives manufacturing into its existing portfolio, which has traditionally focused on electronic systems for weapon platforms. This vertical integration is expected to enable Apollo to offer a more comprehensive suite of defence products, spanning electronics, platforms, and now, explosives-particularly for artillery, missile, and other high-impact weapon domains.

Apollo’s management has described the acquisition as a landmark step in its ambition to become a Tier-I Original Equipment Manufacturer (OEM) for weapon systems. The company emphasized that the deal aligns with India’s push for indigenous defence production and self-reliance under the “Atmanirbhar Bharat” initiative.

By consolidating its expertise in electronics with the manufacturing of critical explosive components, Apollo is positioning itself as a full-stack supplier capable of meeting the growing domestic demand for integrated defence solutions.

The acquisition also represents a strategic shift for GOCL Corporation, which is divesting its high-revenue subsidiary as part of a broader realignment of its business focus. Despite IDL Explosives’ significant contribution to GOCL’s turnover, the sale is seen as an opportunity for both companies to pursue their evolving strategic objectives: Apollo’s expansion in defence manufacturing and GOCL’s diversification into other sectors.

Apollo Micro Systems’ acquisition of IDL Explosives is set to transform the company into a more diversified and integrated defence manufacturer, enhancing its capabilities in both electronics and explosives. This positions Apollo to better serve India’s growing defence needs and supports the national goal of self-reliance in critical military technologies.

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