Adani Group has announced an ambitious investment of ₹7,000 crore to expand its footprint in India’s ammunition industry, marking one of the largest private-sector commitments in the domestic defence manufacturing space.

The expansion is centred on its 500-acre facility in Kanpur, Uttar Pradesh, which already serves as a cornerstone of Adani Defence’s small-calibre ammunition production.

The facility currently produces around 150 million rounds annually, but the new investment aims to triple this figure to nearly 500 million rounds per year, reflecting the Group’s intent to meet growing demand from both domestic and export markets.

This accelerated scaling effort comes at a time when India is seeking to reduce dependence on imported ammunition and strengthen its indigenous munitions base. Adani Defence’s strategy places equal focus on capacity enhancement and technology advancement to deliver a diversified range of capabilities to the Indian Armed Forces.

The company’s expansion is structured in phases: its large-calibre ammunition line is expected to become operational within the next few months, while the medium-calibre production unit is scheduled for completion by January 2027.

These facilities will significantly widen the product mix from small arms rounds to tank, artillery, and medium-weight munitions suitable for multiple service branches and export customers.

A major hurdle, however, lies in the shortage of explosive materials across India’s defence manufacturing ecosystem. The supply gap has partly arisen from the limited production capacity of Munitions India Ltd, a state-owned enterprise that faces both domestic and export obligations.

To overcome this constraint, Adani Defence has begun integrating more production processes internally, such as chemical and metal component manufacturing, as well as establishing foreign supply partnerships to secure critical materials. This forward integration effort is designed to de-risk the supply chain, ensure higher output consistency, and support the broader national goal of self-reliance in defence production.

In parallel with ammunition manufacturing, Adani Defence has been diversifying into advanced warfare domains aligned with future battlefield requirements. The company has underscored the importance of offensive systems and autonomous combat platforms, drawing lessons from recent conflicts in Ukraine and Gaza that revealed the strategic importance of drones, loitering munitions, and precision-guided systems.

Its Hyderabad facility has become a centre for unmanned aerial vehicle (UAV) production, supporting both tactical operations and surveillance roles.

To deepen its technological capabilities, Adani Defence has strengthened partnerships with the Defence Research and Development Organisation (DRDO) and has entered into collaborations with firms in France, Israel, and Russia.

These ventures focus on co-development, technology transfer, and joint production initiatives that bring global expertise into India’s industrial base. Such partnerships are expected to play a crucial role in fast-tracking advanced munitions technologies, electronic fusing systems, and smart ammunition solutions.

Adani Group’s continued foray into the defence sector reflects its broader alignment with India’s Atmanirbhar Bharat mission and the government’s emphasis on private-sector participation in strategic manufacturing.

By committing substantial capital and integrating international technological frameworks, Adani Defence aims to emerge as a key supplier within India’s munitions and advanced weapons ecosystem. 

The investment not only underscores confidence in defence sector liberalisation but also signals a structural transformation in how private players are reshaping India’s role as a global defence manufacturing hub.

Agencies