In a first in the private sector, two facilities for the manufacture of ammunition and missiles were opened by Adani Defence and Aerospace in Kanpur on February 26, 2024.
The twin-facility complex, spread over 500 acres, was inaugurated by Army Chief Gen. Manoj Pande and Uttar Pradesh Chief Minister Yogi Adityanath.
Speaking at the event, Gen. Pande said 32 variants of ammunition in 12 categories were identified for manufacture by the Indian industry in phase one.
“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,” Gen. Pande said on the ammunition indigenisation plan.
“Simultaneously, MAKE programmes for developing new-generation ammunition, including electronic fuses currently not held in the inventory, are also being processed.”
The Kanpur complex is set to become one of the largest integrated ammunition manufacturing complexes in South Asia, Adani Defence and Aerospace said in a statement.
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.”
Ashish Rajvanshi, CEO of Adani Defence and Aerospace, said that 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.
The unveiling coincided with the fifth anniversary of the Balakot air strike when the Indian Air Force hit terror camps in Balakot, Pakistan, on February 26, 2019.
Push for self-reliance
Emphasising the need for self-reliance in missiles and ammunition, Gen. Pande said 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,” he said.
Gen. Pande said 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.
Export potential
Noting that the ammunition categories proposed for manufacturing by the Army also have sufficient export potential, the Army Chief 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.”
Addressing the gathering, Mr. Adityanath said 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.
