The Adani Group has created a war chest of $2-2.5 billion for acquisitions in the defence sector over the next 2-3 years. It has zeroed in on a couple of drone technology companies in Bengaluru and Hyderabad as potential acquisition targets that can be used for reconnaissance in hostile environments, sources with knowledge of developments said.

Talks are ongoing with the drone technology firms, and a deal is likely in the next few months, sources said.

Earlier this month, Adani Defence & Aerospace and UAE-based EDGE group signed a collaboration agreement on defence and security. Areas of cooperation included missiles and weapons covering airborne, surface, infantry, ammunition, and air defence products, platforms and systems covering unmanned aerial systems, loitering munitions, counter-drone systems, unmanned ground vehicles, as well as electronic warfare and cyber technologies.

At a defence summit earlier this year, Adani Defence’s CEO Ashish Rajvanshi had said the company had “big investments” planned in the defence sector over the next ten years.

In February, it launched a ₹3,000-crore ammunition factory in Kanpur spread over 500 acres. That facility will make small, medium, and large calibre ammunition for the defence forces and is touted to be South Asia’s largest ammunition and missile complex.

It has a range of counter-drone systems that can be used in particularly difficult to hostile territories and avoid human casualties. The defence forces can deploy these  for remote reconnaissance activities.

Adani is looking for more advanced technologies and is expecting acquisitions to fill the gap.

It has announced investing ₹1,000 crore in Telangana to establish counter-drone and missile facilities.

Last year, the defence business launched an indigenously manufactured Drishti 10, an advanced intelligence, surveillance, and reconnaissance platform that was flagged off at Porbandar. It also inaugurated a serial production line for missile systems at Hyderabad.

It collaborates  with the Defence Research and Development Organisation on a number of projects, including naval anti-ship missiles.

The Adani group has tied up with leading defence technology companies in the Middle East, Eastern Europe, Africa, and Southeast Asia to help bring more advanced technologies into the defence sector.

It plans to step up investments in unmanned systems, small arms, and missiles while venturing into the production of indigenous artillery guns. It is also focused on establishing maintenance, repair, and overhaul solutions in India.

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