Adani Group Identifies Defence Manufacturing as Significant Opportunity

The Adani Group is set to make significant investments in its defence sector, foreseeing promising prospects both domestically and internationally. Jeet Adani, Vice President of Adani Enterprises and the younger son of Gautam Adani, noted that while the defence business may not experience rapid growth comparable to other sectors, its expansion will undoubtedly be noteworthy.

Speaking to BusinessLine at an event in Kanpur, where Uttar Pradesh Chief Minister Yogi Adityanath inaugurated the Adani Aerospace and Defence's ammunition factory, Jeet Adani emphasized the company's commitment to the sector. The facility, sprawling over 500 acres, stands as South Asia's largest complex for manufacturing ammunition and missiles, catering to a full spectrum of defence needs from components to artillery.

Jeet Adani outlined the company's strategic approach, stating that the initial focus would be on consumables in defence equipment, with a gradual transition towards high-tech equipment. The factory will produce top-quality small, medium, and large calibre ammunition for the armed forces, paramilitary forces, and police. Notably, the facility has already commenced production of small calibre ammunition, starting with an impressive output of 150 million rounds, estimated to fulfill 25% of India's annual requirement.

The initial investment for the project stands at ₹3,000 crore, with employment opportunities for 4,000 individuals. Adani projected this investment to rise to ₹4,000 crore by 2028. He highlighted that while the business requires substantial initial capital and has a lengthy gestation period, it holds the potential for exponential growth with favorable returns on investment once operational momentum picks up.

HBL