Apollo Defence Industries Private Limited, a 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 part of the Hinduja Group—one of the largest diversified transnational conglomerates, with investments across several sectors and a presence in over 100 countries. IDL Explosives is a well-established manufacturer of a complete range of packaged and bulk explosives, specifically engineered for mining and infrastructure projects. It also offers an extensive range of cartridge explosives.
The company recorded a turnover of Rs 623 crore in FY24 and holds a net worth of Rs 10 crore. Over the past three years, its revenues have seen substantial growth from Rs 395.38 crore in FY22.
This acquisition includes 78.65 lakh equity shares at Rs 136.04 each, amounting to Rs 107 crore. Upon completion, Apollo Defence will own 100 per cent of IDL Explosives. The move marks a key milestone in Apollo Defence's journey to becoming a Tier-I Original Equipment Manufacturer (OEM) for weapon systems. It significantly enhances the company's ability to provide integrated defence solutions by combining design, electronics, platforms, and now explosives—allowing for a broader portfolio across artillery, missile, and high-impact weapon systems.
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 explosives company, which boasts a distinguished legacy of over 64 years. This acquisition opens new avenues for vertical integration and full-spectrum capability enablement, allowing AMS to deliver 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, and pride."
The explosives market is expected to witness robust growth over the coming years, projected to reach $9.37 billion by 2029 at a CAGR of 8.8 per cent. Increased government spending on the defence sector in countries including the USA, China, India, Russia, the UK, and France is set to be a major growth driver. Emerging opportunities across the sector further underscore the strategic value of this acquisition—making it a golden goose for Apollo Micro Systems.