With its step-down subsidiary, IDL Explosives Limited, Apollo Micro Systems Limited (AMS), with its headquarters located in Hyderabad, has made a significant contribution to the defense manufacturing sector in India.
Under the Industries (Development and Regulation) Act, 1951, the subsidiary has obtained a 15-year industrial license that permits the manufacture of the high-energy explosives TNT (Trinitrotoluene) and HMX (Cyclotetramethylenetetranitramine).
The announcement of this achievement in the middle of December 2025 highlights AMS’s deliberate efforts to become self-sufficient in crucial energetics for defense applications.
The license addresses significant gaps in domestic munitions and propellant supply chains by defining yearly production capacities of 50 MTPA for HMX and 500 MTPA for TNT. The plant, which is situated in Rourkela, Odisha, places IDL Explosives as a key player in India’s Atmanirbhar Bharat project by lowering reliance on imports for these high-performance materials that are necessary for artillery rounds, missiles, and warheads.
While TNT continues to be a mainstay for filling armor-piercing projectiles and general-purpose explosives, HMX, which is renowned for its greater detonation velocity and stability, is used as a booster in sophisticated solid rocket motors.
AMS Managing Director Karunakar Reddy praised the certification as a “significant strategic milestone,” highlighting how it validates the company’s operational competence, technical know-how, and adherence to strict safety regulations.
He pointed out that the license opens up chances in both local industrial sectors and foreign export markets for both defense and civilian explosives, while also enabling the fulfillment of captive defense requirements. This improves vertical integration throughout the defense supply chain and is consistent with AMS’s wider portfolio in precision guidance systems, avionics, and missile components.
This development was made possible by AMS’s acquisition of IDL Explosives from the Hinduja Group earlier in 2025 for about ₹107 crore, which strengthened the company’s explosives manufacturing footprint. On the day of the announcement, the market reacted favorably, with AMS shares jumping more than 1% to about ₹229, indicating investor confidence in the company’s growth trajectory amid growing defense indigenization orders.
Future scaling could include research and development into polymer-bonded explosives or insensitive munitions, strengthening AMS’s competitive advantage in international defense markets.
Such private sector achievements demonstrate the effectiveness of “Make in India” initiatives in luring investment into specialized high-tech fields, especially in light of India’s defense budget exceeding ₹6 lakh crore for FY2026. With more than 20 subsidiaries, AMS’s ecosystem today includes everything from electronics to propellants, making it a significant private participant alongside public behemoths like DRDO and Ordnance Factories.
With analysts predicting improved order books from the Ministry of Defense, this license renewal opportunity after 15 years provides steady cash streams. Overall, the success of IDL Explosives, which combines domestic invention with demonstrated manufacturing ability, supports India’s rise as a reliable defense supplier.
