Apollo Defence Industries Pvt. Ltd. acquires the very first Indian-owned explosives company for Rs. 107 crore

Mumbai, May 5, 2025: Apollo Defence Industries Private Limited, subsidiary of Apollo Micro Systems Ltd. has signed a share purchase agreement to acquire full ownership of IDL Explosives Ltd, in an all-cash transaction.

IDL Explosives is a part of Hinduja Group-one of the largest diversified transnational conglomerates with investments across several sectors and a presence in over a 100 countries. IDL Explosives is a well-established manufacturer of full range of packaged and bulk explosives specifically engineered for mining and infrastructure projects. Moreover it also offers an extensive range of cartridge explosives.

The company had posted a turnover of ₹623 crore in FY24 and holds a net worth of ₹10 crore. Over the past three years, its revenues have seen major growth from  ₹395.38 crore in FY22.

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This purchase involves 78.65 lakh equity shares at ₹136.04 each amounting to ₹107 crore. Once acquisition completed, Apollo Defence will own 100% of IDL Explosives. This acquisition is a key step towards becoming a Tier-I Original Equipment Manufacturer (OEM) for weapon systems. It strengthens Apollo Defence’s ability to offer integrated defence solutions, combining design, electronics, platforms, and now explosives enabling it to offer a broader portfolio of systems across artillery, missile, and high-impact weapon domains.

B Karunakar Reddy, Managing Director of Apollo Micro Systems Ltd., described the deal as a landmark moment for the group’s defence ambitions.

“Apollo Group is proud to announce a significant enhancement to its portfolio through a landmark alignment with India’s first explosive company with a distinguished legacy of over 64 years. This acquisition opens up new routes towards vertical integration and full-spectrum capability enablement, allowing AMS to offer end-to-end solutions across the entire weapon system lifecycle, from electronics and arming mechanisms to complete munitions and integrated platforms. Together we are poised to unleash the next chapter in the Spirit of Atmanirbhar Bharat, serving our great nation with innovation, strength & pride.”

The explosive market size is expected to see strong growth in the next few years. It will grow to $9.37 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The surge in government spending on the defense sectors in various countries including USA, China, India, Russia, UK and France are projected to be a major driver for the growth of the explosive market during the period. Further opportunities are going to emerge within the explosives market proving that this acquisition is a golden goose for Apollo Micro Systems.