Adani Group is set to significantly expand its ammunition production capacity in response to strong global demand, particularly driven by geopolitical tensions. The company plans to double its output of small arms ammunition from 150 million rounds to 300 million rounds annually by the end of 2025. This expansion is part of a broader strategy to enhance India's defence capabilities and reduce reliance on imports.

The Adani Group's defence arm, Adani Defence & Aerospace, aims to increase its small arms ammunition production capacity to meet both domestic and international demands. The company has already secured export orders for the next five years, indicating robust international interest in its products.

To support this growth, Adani is constructing a new facility dedicated to producing large-calibre artillery shells, which will initially manufacture 1,50,000 rounds of 155 mm ammunition per year. This facility is part of a larger investment in defence manufacturing that includes advanced technologies and artificial intelligence.

In anticipation of rising domestic requirements, the company plans to reserve 33% of its production capacity for local use. This strategic move aligns with India's goal of self-reliance in defence manufacturing under the 'Aatmanirbhar Bharat' initiative.

The decision to ramp up production comes amid ongoing conflicts such as the Russia-Ukraine war, which has heightened global demand for military supplies as many nations seek to replenish their reserves.

The Adani Group's expansion in ammunition production not only positions it as a key player in the global defence market but also strengthens India's defence infrastructure. By increasing its capabilities, Adani aims to fulfil approximately 50% of India's annual ammunition needs, thereby contributing significantly to national security and self-sufficiency in defence.

ET News