SMPP to raise ₹580 crore to set up ammunition plant in HP 

SMPP, a leading designer and defence equipment manufacturer, plans to raise ₹580 crore to set up an ammunition manufacturing facility through its wholly-owned subsidiary SMPP Ammunition. The new plant will come up on 800 acres at Solan in Himachal Pradesh.

The company will use about ₹437 crore to finance the capital expenditure towards construction of buildings and land development and procurement of plant and machinery for the plant.

The project includes making explosive storage magazines, bi-modular charge system assembly facilities, primer manufacturing facility, non-destructive testing facilities, critical utilities and explosive effluent treatment loading assembly packing facility, with high explosive melt cast LAP, thermal cycling and core cut and press.

SMPP Ammunition was issued an arms licence on April 4, 2023 by the DPIIT to manufacture ammunition.

Earlier, only the state-owned Ordnance Factory Board was permitted to produce ammunition, while India’s private sector was allowed to manufacture parts of ammunition.

Pursuant to setting up the ammunition project, SMPP intends to commence the manufacture of ammunition of 155 mm calibre for the armed forces.

The company intends to eventually expand production to include other large and medium calibre ammunition with minor adjustments to the new plant and equipment.

At present, SMPP’s ammunition component offerings comprise combustible cartridge cases for tank and artillery ammunition since 1992.

The company was exporting personal protection products to 23 European and Asian countries between April 2021 and June 2024.

The Gross Value Added has registered grown from ₹24 lakh crore in FY’19 to ₹39 lakh crore in FY’24 due to government initiatives on self-reliance and reducing dependency on imports.

As the demand for Indigenous defence solutions grows, local manufacturers are stepping up to meet the needs of the Indian Armed Forces.