SMPP to Raise ₹580 Crore for Ammunition Plant in Himachal Pradesh

SMPP
Image Courtesy: SMPP

SMPP, a prominent designer and manufacturer of defense equipment, is set to raise ₹580 crore for the establishment of an ammunition manufacturing plant through its wholly-owned subsidiary, SMPP Ammunition. The plant will be built on 800 acres of land in Solan, Himachal Pradesh.

Of the total investment, approximately ₹437 crore will be allocated towards the capital expenditure for constructing the facility, developing the land, and acquiring the necessary plant machinery. The project will include facilities for manufacturing explosive storage magazines, assembling bi-modular charge systems, producing primers, conducting non-destructive testing, and setting up utilities and explosive effluent treatment systems. Additionally, the plant will support loading, assembly, and packing for high-explosive melt-cast LAP, thermal cycling, core cut, and press operations.

SMPP Ammunition received an arms license on April 4, 2023, from the Department for Promotion of Industry and Internal Trade (DPIIT) to produce ammunition. Previously, only the state-run Ordnance Factory Board had permission to manufacture ammunition, while private companies could only produce parts of ammunition.

The company plans to begin with the production of 155 mm caliber ammunition for the Indian Armed Forces and intends to expand to other large and medium caliber rounds with minor adjustments to the plant. Since 1992, SMPP has been producing combustible cartridge cases for tank and artillery ammunition. The company has also been exporting personal protection products to 23 countries across Europe and Asia from April 2021 to June 2024.

Driven by government initiatives to foster self-reliance and reduce dependency on imports, India’s defense sector has seen its Gross Value Added grow from ₹24 lakh crore in FY’19 to ₹39 lakh crore in FY’24. As the demand for domestic defense solutions rises, local manufacturers are ramping up their efforts to support the needs of the Indian Armed Forces.

SMPP Limited, formerly known as SMPP Private Limited, is a trusted manufacturer of critical defense equipment, specializing in personal protection, platform protection, and large-caliber ammunition. Their product range includes bullet-resistant jackets, armor plates, ballistic helmets, and shields designed for armed forces, police, and paramilitary personnel.

They also provide armor solutions for vehicles, patrol boats, aircraft, and helicopters, enhancing survivability during combat and anti-terror operations. In the ammunition sector, SMPP is recognized as one of the oldest private sector companies in India, producing combustible cartridge cases for various calibers used in tanks and artillery guns. The company has received multiple national awards for indigenization and technology absorption, reflecting its commitment to innovation and excellence in defense manufacturing.