Adani's ₹2,500 Crore Project Powers Defence Manufacturing

India Manufacturing Review Team
Monday, 06 July 2026

Synopsis: Adani Defence will invest ₹2,500 crore in a missile manufacturing complex in Madhya Pradesh, creating South Asia’s largest private missile ecosystem and strengthening India’s indigenous defence production.

Adani Defence & Aerospace has announced an investment of ₹2,500 crore to establish an integrated missile manufacturing ecosystem in Shivpuri, Madhya Pradesh, marking a major milestone in India's indigenous defence manufacturing journey. Spread over the next three years, the project is set to become South Asia's largest private-sector missile manufacturing ecosystem, bringing the complete missile production value chain from critical raw materials to mission-ready missile systems under a single facility.

The foundation stone for the project was laid in the presence of Madhya Pradesh Chief Minister Mohan Yadav, Union Minister Jyotiraditya Scindia, senior officials, and Adani Group executives. The facility represents a significant expansion of the company's defence manufacturing capabilities and aligns with the Government of India's vision of achieving self-reliance in defence production under the Aatmanirbhar Bharat initiative.

Unlike conventional missile assembly plants, the Shivpuri complex will integrate every major stage of production. Along with manufacturing medium- and long-range missile systems, the facility will produce composite propellants, trinitrotoluene (TNT), and other explosive-grade materials required for missile production. This backward integration is expected to bridge a critical gap in India's defence supply chain by reducing dependence on imported strategic materials.

Speaking at the foundation stone ceremony, Jeet Adani, Director of Adani Defence & Aerospace, described the project as a historic first for India's private defence sector. He stated that the facility would replace foreign dependency with indigenous capabilities by creating a fully integrated missile manufacturing ecosystem capable of supporting multiple missile programmes simultaneously. The company also reiterated its commitment to working closely with the Defence Research and Development Organisation (DRDO) and the Indian Armed Forces to accelerate indigenous weapons production.

The project is expected to generate around 5,000 direct and indirect employment opportunities while fostering the growth of more than 50 micro, small and medium enterprises (MSMEs) that will become part of the specialised defence supply chain. The investment is anticipated to stimulate industrial development in the Shivpuri-Guna region and position Madhya Pradesh as a leading defence manufacturing destination.

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The facility will utilise advanced manufacturing technologies, automated production systems, and globally benchmarked safety standards to manufacture high-precision missile systems for the Indian Armed Forces. It is also being designed to support exports to trusted international partners, strengthening India's position as an emerging global supplier of advanced defence equipment.

The Shivpuri investment builds on Adani Defence's existing manufacturing presence in Madhya Pradesh. The company's Gwalior facility already produces assault rifles, carbines, and light machine guns for the Indian Armed Forces, including the recently delivered Prahar Light Machine Gun programme. Together, the Gwalior and Shivpuri facilities are expected to create a comprehensive defence manufacturing ecosystem within the state.

The integrated missile complex will also support several indigenous missile programmes being developed in collaboration with DRDO, including systems such as the Rudram series, Naval Anti-Ship Missile–Short Range (NASM-SR), Long-Range Glide Bomb "Gaurav," Tactical Autonomous Reconnaissance and Attack (TARA), and other advanced precision-guided weapons. Expanding domestic production capacity for these systems is expected to strengthen India's strategic defence preparedness while enhancing manufacturing efficiency.

The project reflects the growing role of the private sector in India's defence industrial base. By integrating raw material production, explosives manufacturing, missile assembly, and system integration at one location, the facility is expected to improve supply chain resilience, reduce production timelines, and strengthen indigenous technological capabilities.

With a planned investment of ₹2,500 crore, the Shivpuri missile manufacturing ecosystem represents a major advancement in India's defence manufacturing ambitions. The project is expected to accelerate self-reliance in strategic weapons production, generate skilled employment, encourage MSME participation, and reinforce India's position as a globally competitive defence manufacturing hub.

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