Adani gets ready to supply drones, missiles for defence forces

After its dominance in the cement sector, the Adani Group, led by Gautam Adani, is now preparing to make a big move in the defence sector. Adani is now in the mood to venture into missile and drone technology. The group will manufacture modern weapons and drones for the country. For this, some agreements have also been made and preparations are underway for heavy investments.

What are Adani Group’s plans regarding the defence sector? How is Adani establishing its dominance in the cement sector? Let’s find out. Adani Group may opt for acquisitions of companies to strengthen its position in the defence sector, similar to what it did in the cement sector.

According to a report by Hindu Businessline, Adani Group has prepared a war chest of more than 2.5 billion dollars, i.e., more than 20 thousand crore rupees, for acquisitions in the defence sector. As per the report, it has been said that, the group is in talks with drone companies in Bangalore and Hyderabad for potential acquisitions and a deal could be struck in the coming months. This will help the group strengthen its position in the defence sector.

Adani Group’s, Adani Defence and Aerospace, has partnered with UAE’s EDGE Group at the beginning of June. Under the agreement, both companies will collaborate and work towards manufacturing missile, drone systems, air defence products and cyber technology. To expand its plans in the defence sector, Adani Defence started a gunpowder factory in Kanpur at a cost of 3000 crore rupees. This factory will produce weapons and gunpowder for security forces. It is being called the largest gunpowder and missile complex in South Asia.

Along with the defence sector, Adani Group is continuously strengthening its position in the cement sector. The group’s company, Ambuja Cement, recently announced the acquisition of Penna Cement Industries in Hyderabad for 10,422 crore rupees. After stepping into the cement business in 2022, this is Adani Group’s third acquisition.

Prior to this, Adani Group’s companies acquired a majority stake, i.e., 56.74% shares, in Sanghi Cements in August 2023. In April 2024, a grinding unit was acquired from My Home Industries. It is said that there are few other companies as well that are on the group’s acquisition radar. For these acquisitions, the group has also prepared a fund of 3 billion dollars. Adani Group’s plan is to become a major company by increasing cement production capacity through UltraTech Cement.

Similar to the cement sector, Adani Group may also make acquisitions in the defence sector in the near future, so that the group and its company Adani Defence can strengthen their position in the defence sector. Currently, government companies like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) dominate the defence sector.