Apollo Micro Systems (AMS), a Hyderabad-based defence technology firm, has acquired 22,988 square metres of land at the Telangana State Industrial Infrastructure Corporation (TSIIC) Hardware Park Phase-II.

This strategic move paves the way for establishing a state-of-the-art munitions manufacturing facility, bolstering India's indigenous defence production capabilities.

The land parcel, located in the expansive Hardware Park Phase-II near Hyderabad, offers ample space for advanced manufacturing infrastructure.

AMS plans to develop the site into a dedicated hub for producing precision-guided munitions, artillery shells, and other critical ammunition systems. This initiative aligns closely with the Indian government's 'Make in India' and Atmanirbhar Bharat campaigns, emphasising self-reliance in defence manufacturing.

AMS, founded in 2007, has emerged as a key player in the defence and aerospace sectors. The company specialises in electronics, avionics, and electro-mechanical systems, supplying components to major public sector undertakings like Hindustan Aeronautics Limited (HAL) and Bharat Dynamics Limited (BDL). Its portfolio includes missile guidance systems, UAV payloads, and radar electronics, making it well-positioned to expand into full-scale munitions production.

The new facility will feature cutting-edge automation and clean-room environments to ensure high-precision output. Initial production lines are expected to focus on 155mm artillery shells and smart fuzes, addressing the Indian Army's growing demand amid border tensions. This development comes at a time when global supply chain disruptions have highlighted the need for domestic sourcing of ammunition.

Hyderabad's Hardware Park has become a hotspot for defence manufacturing, hosting firms involved in semiconductors and avionics. TSIIC's Phase-II expansion provides plug-and-play infrastructure, including reliable power, water, and connectivity, which will accelerate AMS's project timeline. The park's proximity to Shamshabad airport and major highways facilitates logistics for raw materials and finished products.

Financially, AMS reported robust growth in its latest fiscal results, with revenues exceeding ₹300 crore, driven by defence orders. The land acquisition, valued at an estimated ₹50-60 crore, represents a significant capital investment. Funding is likely to come from internal accruals, bank loans, and possible government incentives under the Defence Production Policy.

This venture will create over 500 direct jobs, primarily for skilled engineers, technicians, and quality control specialists. Indirect employment in ancillary sectors like logistics and machining could add another 1,000 positions.

Local skill development programs, in partnership with institutions like IIT Hyderabad, will train youth in munitions engineering and Industry 4.0 technologies.

From a strategic perspective, the facility enhances India's ammunition stockpiles, critical for prolonged operations. It reduces dependency on imports from Israel and Eastern Europe, which have faced delays due to geopolitical conflicts. AMS's integration of AI-driven quality assurance will ensure munitions meet NATO standards, opening export avenues to friendly nations.

Regulatory approvals, including environmental clearances from the Telangana Pollution Control Board, are in advanced stages. Construction is slated to commence within six months, with pilot production targeted for late 2027. Full operational capacity could reach 1 million rounds annually by 2029, positioning AMS as a mid-tier munitions supplier.

Challenges ahead include sourcing rare earth metals for fuzes and navigating export control regimes. However, AMS's track record with DRDO projects instils confidence. Government subsidies via the Technology Development Fund could offset initial costs, fostering innovation in next-gen munitions like ramjet-propelled shells.

This expansion underscores Hyderabad's rise as India's defence manufacturing capital, rivalling Bengaluru. With DRDO labs and private players co-locating, the ecosystem promises synergies in R&D and testing. AMS's move signals investor confidence in Telangana's pro-industry policies.

IDN (With Agency Inputs)