Sagar Defence Ammunition Business: Sagar Defence Engineering has taken a big new step. The company said on Tuesday that it has received an industrial licence to make explosives and ammunition at its units in Maharashtra and Andhra Pradesh. This is important because it helps India depend less on foreign supplies and build more defence products inside the country. Asianet Newsable reported the licence news on April 7, 2026.
Till now, Sagar Defence was mainly known for building smart unmanned systems. The company has made its name in India’s defence space by working on advanced machines that can operate without people inside them. It works across the sea, under the sea, in the air and on land. Its products include armed autonomous boat swarms, autonomous underwater vessels and unmanned aerial vehicles used for security work. The company also says it builds unmanned and autonomous maritime systems.
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New Plant Plans
The company says this expansion will also be backed by a new site in Andhra Pradesh. 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.” A March 2026 report in The New Indian Express also said the foundation stone was laid for a Sagar Defence unit near Juvvaladinne Fishing Harbour in Nellore district.
That means the company is not just adding one more product line on paper. It is preparing real ground for bigger output. With plants in Maharashtra and Andhra Pradesh, Sagar Defence wants to connect explosives and ammunition making with the unmanned defence platforms it already builds. That can help the company become more useful for India’s defence needs in the years ahead.
India’s Ammunition Demand
This move is happening at a time when India’s ammunition business is getting bigger. One 2026 market estimate says the Indian ammunition market could grow from USD 2.66 billion in 2026 to USD 4.44 billion by 2031. That would mean a growth rate of 10.8%. Different research firms have published different long-term estimates, but this 2026 to 2031 projection does match the figures in the draft you shared.
The government side is also spending more. Munitions India Limited received a budget allocation of ₹745.45 crore in FY2025 to upgrade infrastructure and increase production capacity, as stated in the article you shared. On the private side, Bharat Forge is building an explosives facility so it can move from making shell parts to fully assembled ammunition. The Adani Group has also put ₹7,000 crore into the ammunition space. Its Kanpur complex is producing about 150 million rounds a year and is aiming for 500 million rounds a year later.
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Local Defence Production
The bigger story here is India’s push to make more defence goods at home. The article says that in December 2025 the Defence Ministry said 154 out of 175 ammunition variants needed by the Indian Army had been made local, which works out to 88%. The government’s year-end review for 2025 later said the share had risen further to nearly 91%, showing that the local production push kept moving ahead.
