Adani Group to Invest $2-2.5 Billion in Defence Sector Acquisitions, Focuses on Drone Technology and Advanced Systems

The Adani Group plans to invest $2-2.5 billion in defence sector acquisitions over the next few years, focusing on drone technology and advanced defence systems to enhance its technological capabilities.

The Adani Group has announced plans to invest $2-2.5 billion in acquisitions within the defence sector over the next 2-3 years. This substantial investment aims to enhance the company's technological capabilities, with a particular focus on drone technology companies based in Bengaluru and Hyderabad. These companies specialize in reconnaissance technologies suitable for use in hostile environments.

Negotiations are currently underway with several drone technology firms, and a deal is expected to be finalized in the coming months. By acquiring these firms, the Adani Group aims to bridge the gap in advanced technologies and bolster its capabilities in the defence sector.

In 2022, the Adani Group acquired Alpha Design Technologies, a Bengaluru-based firm that serves the aerospace sector. This acquisition significantly enhanced Adani's technological portfolio. In May of the following year, the Indian Space Research Organisation (ISRO) transferred the IMS-1 Satellite Bus Technology to Alpha Design Technologies. This transfer was part of an initiative by ISRO's commercial arm, NewSpace India Limited (NSIL), to collaborate with private players through an Interest Exploratory Note (IEN).

Additionally, the Adani Group has collaborated with the Defence Research and Development Organisation (DRDO) on various projects, including the development of naval anti-ship missiles. Earlier this month, Adani Defence & Aerospace entered into a strategic partnership with EDGE Group, a leading advanced technology and defence group from the UAE. This collaboration focuses on combining expertise in missiles, weapons, unmanned platforms, and cyber systems. The agreement also explores the establishment of research and development facilities in India, the UAE, and other global markets to drive technological advancements in the defence sector.

The Adani Group has also invested in an ammunition factory in Kanpur and has plans to establish counter-drone and missile facilities in Telangana. These initiatives are part of Adani's broader strategy to enhance its technological capabilities, with an emphasis on unmanned systems, small arms, missiles, and indigenous artillery guns.

In January, Adani Defence & Aerospace achieved a significant milestone by unveiling the Drishti 10 Starliner Unmanned Aerial Vehicle (UAV). This advanced intelligence, surveillance, and reconnaissance (ISR) platform can fly continuously for up to 36 hours, showcasing Adani's commitment to developing cutting-edge defence technologies.

With these strategic investments and collaborations, the Adani Group is poised to play a significant role in advancing India's defence capabilities and positioning itself as a key player in the global defence industry.