Apollo Micro Systems (AIMS) has taken a significant step toward expanding its footprint in the defence manufacturing sector by signing a Memorandum of Understanding (MoU) with the Telangana government.

The agreement includes the establishment of a new greenfield defence manufacturing facility in the state, marking an important phase in the company’s growth strategy. This ambitious project involves an investment of approximately ₹1,500 crore, which translates to around $165 million, signalling a major financial commitment to advancing India’s defence industrial base.

The proposed facility is set to be located in Hyderabad, Telangana’s capital, leveraging the city’s growing prominence as a hub for technology and manufacturing.

This location offers strategic advantages, including access to skilled labour, established industrial infrastructure, and proximity to defence research and development centres. Such factors are expected to facilitate efficient execution and operational readiness for the new manufacturing complex.

AIMS plans to focus the new facility on the production of a broad range of munitions, catering to diverse defence requirements. The production scope covers several critical components, including warheads for missile systems, rocket motors, and artillery ammunition spanning small, medium, and large calibres. Additionally, the facility will manufacture complete ammunition systems to support a variety of armaments, covering multiple segments of the Indian Armed Forces’ needs as well as international clientele.

This initiative aligns closely with the Indian government’s “Aatmanirbhar Bharat” or self-reliant India mission, which aims to bolster indigenous defence manufacturing capabilities.

By developing domestic production of sensitive defence materials such as warheads and rocket motors, the project enhances national security through reduced dependence on imports and strengthens the country’s defence industrial ecosystem. It also supports the national objective of nurturing cutting-edge defence technologies and supply chains within India.

The facility is expected to serve both the domestic market and international defence clients, positioning AIMS as a key player in global defence supply chains. This dual-market approach not only supports India’s defence preparedness but also opens commercial opportunities for export, thereby contributing to the strategic expansion of India’s defence manufacturing exports.

To support smooth project implementation, the Telangana government has pledged to provide comprehensive assistance to AIMS. This will include facilitating the acquisition of all necessary permissions, registrations, and regulatory approvals. Furthermore, fiscal incentives are expected to be offered, enhancing the economic viability of the plant. The state government’s proactive stance is designed to help attract and nurture high-technology defence manufacturing ventures in Telangana.

The new facility will build strong synergies with IDL Explosives Ltd., a related entity that specialises in explosives used in various defence systems. This relationship is poised to ensure captive sourcing of explosives, allowing seamless integration between raw material supply and finished product manufacturing, thereby enhancing operational efficiency and quality assurance across the supply chain.

The setting up of this greenfield facility by AIMS represents a milestone in India’s defence manufacturing journey. It combines significant financial investment, advanced manufacturing capabilities, government partnership, and strategic alignment with national priorities to create a robust platform for future growth in defence technology and manufacturing.

This development is anticipated to contribute substantially to India’s self-reliance in defence systems and foster innovation and employment within the sector.

IDN (With Agency Inputs)