New Delhi: The Adani Group has unveiled a major investment plan worth ₹7,000 crore to expand its ammunition manufacturing capabilities, marking one of the largest private-sector pushes in India’s defence production landscape.
The investment will primarily scale up operations at the Group’s 500-acre Kanpur facility, which currently manufactures about 150 million rounds of small-calibre ammunition annually. With the new expansion, the plant’s output is expected to surge to nearly 500 million rounds per year, aimed at catering to both Indian military requirements and rising export demand.
The move comes at a time when India is working to reduce its dependence on imported ammunition and strengthen domestic production under the Atmanirbhar Bharat initiative. Adani Defence is positioning itself at the forefront of this shift by expanding capacity, diversifying product lines, and deepening its technological base.
Under the multi-phase expansion plan, large-calibre ammunition lines are expected to become operational within months, while the medium-calibre facility is slated for commissioning by January 2027. This will allow the company to broaden its portfolio from small arms rounds to artillery, tank, and medium-calibre ammunition used across multiple armed services.
However, the defence sector continues to face challenges due to a nationwide shortage of explosives required for munitions manufacturing. The shortfall stems largely from the limited output of state-run Munitions India Ltd, which is balancing domestic supply obligations with export commitments.
To counter this, Adani Defence is increasing internal manufacturing of key components, including chemicals and metal parts, and forging international sourcing partnerships to secure reliable access to critical materials. This supply-chain consolidation is designed to support higher production volumes and ensure sustained delivery to the armed forces.
Parallel to its ammunition programme, Adani Defence is expanding into future warfare systems, drawing operational lessons from recent conflicts in Ukraine and Gaza, where drones, autonomous platforms, and precision-guided munitions played decisive roles. Its Hyderabad facility has emerged as a hub for UAV production, supporting surveillance and tactical missions.
The company has also strengthened collaborations with DRDO and partnered with defence firms in France, Israel, and Russia to co-develop technologies, accelerate research, and bring advanced munitions and smart-fusing systems into India’s manufacturing ecosystem.
With the latest investment, the Adani Group is deepening its presence in the national defence sector, signalling confidence in India’s liberalised defence production framework. The expansion is expected to enhance indigenous capability, boost exports, and reinforce India’s emergence as a growing global hub for munitions and advanced combat systems.
