New Delhi | In a significant push towards defence self-reliance, Sagar Defence Engineering has received a licence to manufacture explosives and ammunition in India. The licence, granted under the Industries (Development and Regulation) Act, 1951, marks the company’s expansion from drone and autonomous systems into full-scale defence manufacturing.
Expansion Plans in Two States
The company has announced plans to establish new production facilities in Maharashtra and Andhra Pradesh. A major manufacturing unit is being developed at the Juvvaladinne fishing harbour in Andhra Pradesh, which is expected to play a key role in scaling up production.
According to company founder Nikunj Parashar, the new infrastructure will significantly enhance manufacturing capacity, enabling large-scale production of explosives and ammunition over the next two years.
From Drones to Integrated Defence Systems
Known for its innovations in unmanned systems across land, air, and sea, Sagar Defence Engineering has developed platforms such as autonomous weaponised boat swarms, underwater vehicles, and drones. With the new licence, the company aims to integrate ammunition capabilities with its existing autonomous platforms to create advanced, fully integrated defence solutions.
Boost to ‘Make in India’ in Defence
India has been steadily reducing its dependence on imported defence equipment. According to Ministry of Defence data, nearly 154 out of 175 types of ammunition required by the Indian Army are now being produced domestically—meeting around 88% of the demand.
The domestic ammunition market is also witnessing rapid growth, projected to expand from approximately $2.66 billion in 2026 to $4.44 billion by 2031, driven by evolving security needs and modernization of armed forces.
Policy Support Driving Growth
Government initiatives such as ‘Innovations for Defence Excellence’ (iDEX), ‘Aatmanirbhar Bharat’, and the ‘Make’ programme have played a crucial role in encouraging private sector participation. Recent policy reforms have also simplified licensing procedures, eliminating the need for certain approvals and making it easier for companies to enter the sector.
Private Sector Gaining Momentum
Alongside Sagar Defence, several private and public players are expanding their footprint in ammunition manufacturing. Munitions India Limited is strengthening its infrastructure, while private firms like Adani Defence & Aerospace, Bharat Forge, and Solar Industries are ramping up production capabilities.
Other companies, including IDL Explosives, Premier Explosives, and Hughes Precision, are also actively contributing to the growing ecosystem.
Long-Term Impact
While obtaining a licence is a critical step, experts note that setting up facilities, meeting safety standards, and commencing production will take time. However, the increasing participation of private players is expected to accelerate India’s journey toward a robust and self-sufficient defence manufacturing ecosystem.
The move reflects a broader strategic shift, as India continues to strengthen domestic capabilities to meet rising defence demands and reduce reliance on global supply chains.
