From Drones to Munitions: Sagar Defence Enters Explosives and Ammunition Manufacturing Space

Sagar Defence Engineering has received a licence to manufacture explosives and ammunition, marking a major step towards reducing India’s dependence on imports. The company plans to expand production at new facilities in Maharashtra and Andhra Pradesh. Known for its autonomous defence systems, the startup will now enter full-scale manufacturing.

New Delhi: Aiming to reduce import dependency, leading defence tech startup Sagar Defence Engineering said on Tuesday that it has been granted an industrial license to manufacture explosives and ammunition at its facilities in Maharashtra and Andhra Pradesh.

The development marks a pivotal shift in the company's journey from autonomous systems developer to a full-spectrum defence manufacturer.

Established itself as a key innovator in India's defence ecosystem, Sagar Defence Engineering currently builds next-generation unmanned and autonomous platforms across maritime surface, sub-surface, aerial and terrestrial domains.

The company currently has portfolio that include autonomous weaponized boat swarms, autonomous underwater vessels, and unmanned aerial vehicles deployed for national security operations.

With the newly acquired license, the startup plans to integrate explosives and ammunition manufacturing with its existing strengths in autonomous systems over the next two years.

Sagar Defence Engineering Founder Nikunj Parashar said: “The expansion will be anchored by a dedicated new facility at Juvvaladine Fishing Harbour in Andhra Pradesh, designed to significantly scale up production capacity.”

India's requirement of explosives and ammunition

India's ammunition market is projected to grow from USD 2.66 billion in 2026 to USD 4.44 billion by 2031, at a compound annual growth rate of 10.8%.

State-owned defence company Munitions India Limited (MIL) has got its highest-ever budget allocation of ₹745.45 crore in FY2025 to modernize infrastructure and expand production capacity.

On the private sector front, Bharat Forge is now setting up a dedicated explosives manufacturing facility to move beyond shell casings toward fully assembled, ready-to-fire ammunition.

Adani Group has invested ₹7,000 crore in the ammunition market, with its 500-acre Kanpur facility currently producing 150 million rounds annually and targeting a scale-up to 500 million rounds per year.

In December 2025, the Ministry of Defence announced that it has been able to indigenize production of 154 out of 175 ammunition variants, which works out to 88 per cent, required by the Indian Army.