Adani Group Unveils India’s First Integrated Ammunition Manufacturing Complex in Kanpur, Uttar Pradesh

Defence Industry

Kanpur / New Delhi: Coinciding with the fifth anniversary of the Balakot air strike when the Indian Air Force hit terror camps in Balakot, Pakistan, Adani Defence and Aerospace unveiled two mega facilities for the manufacture of ammunition and missiles in Kanpur on February 26.

Spread over 500 acres, the twin-facility complex was inaugurated by Uttar Pradesh Chief Minister Yogi Adityanath in the presence of Army Chief General Manoj Pande. The opening of country’s first ammunition-missile manufacturing complex in Uttar Pradesh is also a first in the private sector.

General Pande, speaking at the event said that thirty two (32) variants of ammunition in twelve (12) categories were identified for manufacture by the Indian industry in phase one. On the ammunition indigenisation plan, he said, “All cases are likely to fructify in the next one year, as per the envisaged timelines. Approval has been already obtained for five additional ammunition categories to be developed in phase two. Simultaneously, MAKE programmes for developing new-generation ammunition, including electronic fuses currently not held in the inventory, are also being processed.”

Adani Defence and Aerospace in a statement said that the Kanpur complex is set to become one of the largest integrated ammunition manufacturing complexes in South Asia. The facilities will produce high-quality small, medium and large calibre ammunition for the armed forces, paramilitary forces and the police.  “The facility has started rolling out small calibre ammunition, starting with 150 million rounds estimated at 25% of India’s annual requirement.”

“With a planned investment of over Rs 3,000 crore, the complex will create over 4,000 jobs, with five times the multiplier effect on MSMEs, and the local ecosystem benefiting from it indirectly,” said Ashish Rajvanshi, CEO of Adani Defence and Aerospace. “It will be a key facilitator in India’s goal of achieving $5.0 billion exports in defence manufacturing,” said Rajvanshi.

“Recent geopolitical events had re-emphasised the need for a reliable supply of ammunition from internal sources in preparedness for a long-drawn conflict. Strategic prudence dictates that indigenous capacities in ammunition production is a crucial factor in maintaining operational readiness and tempo during conflict,” General Pande said emphasising the need for self-reliance in missiles and ammunition. Adding, the Army has a large ammunition inventory comprising 175 variants of different calibre and type.

“These range from ammunition for vintage platforms to advanced precision-guided munitions. Out of these, 134 ammunition variants have already been indigenised through the efforts of the DRDO, defence public sector units and private industry,” he stated. However, due to production constraints, capacities and large requirements, for both operational and training needs, there exists a demand versus supply gap, which needs to be met through a diverse indigenous vendor base of private industry.

The Army Chief noted that the ammunition categories proposed for manufacturing by the Army also have sufficient export potential. He said that with the evolving global security environment, the demand for ammunition is expected to grow manifold. “Considering the limited players in the field worldwide with expertise in ammunition manufacturing, and our competitive manufacturing cost, the Indian industry will have a huge advantage. The export potential, according to one estimate, is approximately Rs 16,000 crore,” General Pande pointed out.

Uttar Pradesh Chief Minister Adityanath in his address said that Adani Defence and Aerospace has made the largest investment in the Uttar Pradesh Defence Corridor, which will play a crucial role in developing a vibrant defence ecosystem. “It is encouraging to see the commencement of operations within 18 months of allocating land. It will be a proud moment when ammunition and missiles produced in these facilities will help in securing the nation,” he said.

Adani Group sees significant growth opportunities in its defence business, both within India and overseas and plans to invest big in coming years. Moreover, Adani Group will be signing a Memorandum of Understanding (MoU) with the aerospace department of IIT Kanpur, as per Karan Adani. In 2022, Uttar Pradesh Industrial Development Authority (UPIDA) had inked memorandum of understanding (MoU) with Adani Aerospace and Defence and several other firms to develop Kanpur as South Asia’s largest manufacturing facility for arms and ammunition. Consequently, the Adani Defence System and Technologies Limited (ADSTL) acquired 202 hectares of land and laid the plan to develop four manufacturing units with state-of-the art technology to build small and medium calibre ammunition, along with short-range air defence missiles.