Apollo Defence Industries, a subsidiary of Apollo Micro Systems Ltd, has successfully acquired full ownership of IDL Explosives Ltd in an all-cash transaction valued at ₹107 crore. The acquisition was finalized through a share purchase agreement, marking a significant milestone for Apollo Defence in expanding its capabilities.
IDL Explosives, part of the Hinduja Group, is a leading manufacturer of a wide range of packaged and bulk explosives tailored for mining and infrastructure projects. The company also produces a variety of cartridge explosives. In FY24, IDL Explosives posted a turnover of ₹623 crore, with a net worth of ₹10 crore. Over the past three years, its revenues have grown significantly, from ₹395.38 crore in FY22.
The deal involves the purchase of 78.65 lakh equity shares at ₹136.04 each, resulting in the acquisition of 100% ownership of IDL Explosives once the transaction is completed. This acquisition positions Apollo Defence to become a Tier-I Original Equipment Manufacturer (OEM) for weapon systems, enabling the company to offer integrated defence solutions that now include explosives. Apollo Defence can now provide a wider range of systems across artillery, missile, and high-impact weapon sectors.
B Karunakar Reddy, Managing Director of Apollo Micro Systems Ltd, called the deal a pivotal moment for the group’s defence strategy. He said, “Apollo Group is excited to enhance its portfolio through this alignment with India’s first explosives company, with a legacy of over 64 years. This acquisition opens new avenues for vertical integration, providing end-to-end solutions across the entire weapon system lifecycle—from electronics and arming mechanisms to munitions and integrated platforms. We are ready to contribute to the spirit of Atmanirbhar Bharat, serving our nation with innovation and pride.”
The explosive market is projected to grow to $9.37 billion by 2029, driven by increasing defense spending across countries like the USA, China, India, Russia, the UK, and France. This expansion in the explosives sector presents strong growth opportunities, making this acquisition a key strategic move for Apollo Micro Systems.
Apollo Micro Systems Ltd. is a leading Indian company specializing in the design, development, and manufacturing of advanced electronic and electro-mechanical solutions for defense, aerospace, and homeland security. Established in 1985, the company provides mission-critical systems, including avionics, radar subsystems, missile electronics, and unmanned systems, catering to the needs of the Indian Armed Forces and space research organizations. With a strong focus on indigenous technology development, Apollo Micro Systems plays a crucial role in India’s defense modernization efforts, leveraging innovation and strategic collaborations to enhance the country’s self-reliance in high-tech defense solutions.
