Adani Group’s Rs 3,000 Crore Investment On Mega Ammunition Factories

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Adani Group's Rs 3,000 Crore Investment On Mega Ammunition Factories

The manufacturing facility is expected to create over 4,000 jobs.

Billionaire Gautam Adani’s conglomerate started two defense facilities in northern India this week at an investment of Rs 3,000 crore ($362 million), bolstering the country’s campaign to become self-reliant and promote local manufacturing.

Built by Adani Defence & Aerospace, a closely held firm in the Adani Group, at Uttar Pradesh’s Kanpur across 500 acres, these factories will produce small, medium and large caliber ammunition for the armed forces, paramilitary forces and police, according to Karan Adani, founder’s son who’s overseeing the fledgling defense business.

The factories will produce 150 million rounds of ammunition annually – roughly a quarter of India’s requirements – and cater to the diverse needs of the Indian Armed Forces, he said during the inauguration on Monday.

Prime Minister Narendra Modi has ratcheted up calls to boost indigenous manufacturing and reduce reliance on imports, creating business prospects worth billions of dollars for the country’s conglomerates such as the Adani Group, Tata Group, Larsen & Toubro Ltd. and Mahindra Group.

India’s heavy dependence on imports for defense requirements has not only constrained the country’s strategic autonomy but also limited its economic potential, said Karan Adani,¬†chief executive director of Adani Ports and Special Economic Zone Ltd.

The manufacturing facility, which is expected to create over 4,000 jobs, aims to produce 200,000 rounds annually of large caliber artillery and tank ammunition by 2025, and five million rounds of medium caliber ammunition a year later. It’ll also be capable of making short-range and long-range missiles.

Adani Defence already manufactures drones, anti-drone systems and small arms including light machine guns, assault rifles and pistols, according to the company’s website.

 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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