Adani Defence and Aerospace is expanding its facilities in Kanpur, Uttar Pradesh, taking a significant step toward India’s defence self-reliance. The company revealed intentions to increase its small-calibre ammunition production capacity to 300 million rounds by December of this year, from the present 150 million rounds. This increase reflects India’s overarching objective of reducing its reliance on defense imports and establishing itself as a significant player in both the domestic and global arms markets.
The Kanpur complex, which spans 500 acres within Uttar Pradesh’s defense corridor, went fully operational in April 2024. Surprisingly, it gained export capability in two months and began delivering NATO-standard 7.62x51mm and 5.56x45mm rounds to other countries in June 2024, indicating a quick transition from commissioning to commercial exports.
The plant’s ammunition portfolio is diverse, including 5.56mm rounds for INSAS rifles, 7.62mm cartridges for AK-47 and AK-203 rifles, 7.62x51mm NATO rounds for self-loading rifles and machine guns,.338mm sniper rounds, and 9mm ammunition for pistols.
Aside from small-calibre rounds, Adani Defence is greatly increasing its manufacturing of medium and large-calibre cartridges and shells. Plans are planned to build a second complex close to the current site, with the goal of producing 1,50,000 large-calibre rounds per year, which would match the output of the state-run Munitions India Limited over the previous 75 years.
A specific emphasis is on domestic manufacturing of 125mm anti-tank shells, particularly high-tech armour-piercing fin-stabilized discarding sabot (APFSDS) rounds, which have previously represented a key shortfall in India’s military stockpile. This initiative is reinforced by recent technology transfer agreements with Russia, which have been encouraged by India’s Defence Ministry.
Adani Defence is establishing the country’s first manufacturing facility for 23mm, 30mm, and 40mm rounds, which are used in infantry fighting vehicles, anti-aircraft artillery, aircraft weaponry, and naval guns.
The completion of this facility is scheduled for Diwali this year. These products will meet domestic demands while also enhancing India’s ammunition export capabilities, which Adani Defence has already begun to supply to four foreign countries, in addition to meeting the needs of the Indian Army, central armed police forces, and state police.
Self-reliance in component manufacturing is another key component of Adani’s strategy. While almost all processes—from brass strip processing to case and bullet assembly—are done in-house, primers are the last major imported component. Citing a significant increase in propellant costs from less than $10/kg in 2019 to $50 in 2025, Adani Defence intends to establish facilities with a 25,000-tonne annual capacity to manufacture both primers and propellants in India within the next two years, with the goal of further reducing import dependency.
Currently, 90% of India’s ammunition is produced domestically, with Munitions India Limited serving as the primary provider. However, the government’s increased emphasis on indigenisation and fostering private sector engagement is gradually changing India into a self-sufficient weapons manufacturing.
The Kanpur plant, with its quickly increasing capabilities, is critical to this change since it addresses both internal military needs and improves export competitiveness on a global scale. This collaborative push demonstrates India’s desire to transition from one of the world’s major arms importers to a leading exporter and innovator in the defense sector.
