SMPP, a leading defense equipment manufacturer, is set to raise ₹580 crore for the construction of an ammunition plant in Solan, Himachal Pradesh. This project will be carried out through its fully-owned subsidiary, SMPP Ammunition, on an 800-acre site.
Out of the total investment, approximately ₹437 crore will be dedicated to capital expenses, including the construction of the facility, land development, and the purchase of necessary machinery. The plant will feature various facilities, including explosive storage magazines, bi-modular charge system assembly, primer production, non-destructive testing, and systems for treating explosive effluents. It will also handle loading, assembly, and packing for high-explosive materials, along with thermal cycling, core-cutting, and press operations.
SMPP Ammunition was granted an arms license on April 4, 2023, by the Department for Promotion of Industry and Internal Trade (DPIIT), allowing the company to produce ammunition. Until then, ammunition manufacturing was restricted to the state-run Ordnance Factory Board, while private companies could only produce components.
The plant’s initial focus will be on manufacturing 155 mm caliber ammunition for the Indian Armed Forces. The company plans to expand production to other large and medium caliber rounds with minor plant adjustments. SMPP has been producing combustible cartridge cases for tank and artillery ammunition since 1992. Additionally, from April 2021 to June 2024, the company has been exporting personal protection products to 23 countries across Europe and Asia.
India’s defense sector has experienced significant growth, with its Gross Value Added increasing from ₹24 lakh crore in FY 2019 to ₹39 lakh crore in FY 2024. This growth is fueled by government initiatives aimed at promoting self-reliance and reducing import dependence. Local manufacturers are stepping up efforts to meet the growing demand for domestic defense solutions and support the needs of the Indian Armed Forces.
