Adani Group to Double Defence Production on Large Overseas Order

Gautam Adani-led Adani Group is planning to double the production capacity of small arms ammunition from 150 million rounds to 300 million rounds by the end of 2025. The move by the power-to-port conglomerate is backed by strong global demand fueled by geopolitical instability, according to the Economic Times. 

The conglomerate has already reportedly bagged export orders for the next five years. Consequently, it has started putting the required infrastructure in place and is building a calibre plant that will initially manufacture 150,000 rounds of 155 mm ammunition annually, CEO of Adani Defence & Aerospace, Ashish Rajvanshi, told the ET. 

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The power-to-port conglomerate has planned to reserve 33% of its production capacity in case domestic demand rises given the uncertain geopolitical situation across the globe.

Adani Group’s recent defence manufacturing endeavor isn’t just limited to catering to global demand. The power-to-port conglomerate is taking initiatives to strengthen India’s defence capabilities and making huge investments in artificial intelligence and advanced weaponry. Recently, the company launched the Vehicle-Mounted Counter-Drone System, which was developed in collaboration with the Defence Research and Development Organisation (DRDO). 

“By leveraging our advanced manufacturing capabilities, we are committed to ensuring that our armed forces have access to most advanced, indigenous defence technologies to safeguard the nation’s strategic interests,” said Rajvanshi, according to ANI. 

The move by the group is also triggered by the government’s production-linked incentives (PLI) scheme launched to boost domestic manufacturing in 14 sectors, including drones and drone components. 

The power-to-port conglomerate has also cracked significant acquisition deals to strengthen its portfolio. Last year in December, Adani Defence & Aerospace sealed a deal to acquire an 85.8% stake worth Rs 400 crore in Air Works, the country’s largest private-sector maintenance, repair and overhaul (MRO) company. 

“The acquisition enhances Adani’s capabilities in the defence MRO sector, solidifying its position in India’s airborne defence ecosystem,” said the company. 

The acquisitions and operations expansion are part of the group’s broader plan to invest heavily in India’s defence sector in the coming 10 years and reduce the country’s defence imports dependence.