Apollo Micro Systems Limited (AMS) has officially completed the acquisition of IDL Explosives Limited from the Hinduja Group for approximately ₹107 crore. The company announced that this deal will significantly strengthen its position in the defence, ammunition, and industrial explosives segments.
What is IDL Explosives?
IDL Explosives Limited is one of India’s established manufacturers of explosives for defence, mining, and various industrial applications. The company has been a long-standing part of the Hinduja Group and operates in a highly regulated and strategic sector.
Key Details of the Deal
• Acquisition Value — Around ₹107 Crore
Apollo Micro Systems funded this acquisition internally, supported by its strong balance sheet.
• Why Did AMS Acquire IDL Explosives?
Apollo Micro Systems already works in defence electronics, missile systems, surveillance, launchers, drones, and automation.
By acquiring IDL Explosives, AMS gains entry into defence + explosives manufacturing, expanding its overall capabilities.
• Strategic Objectives
- Deepen vertical integration in defence manufacturing
- Strengthen ammunition and explosive production for armed forces
- Enter the mining and industrial explosives market
- Improve competitiveness in securing large government contracts
About Apollo Micro Systems
Headquarters: Hyderabad
Sector: Defence & Aerospace Electronics
Core Products & Solutions:
- Missile launch systems
- UAVs & drones
- Avionics and defence electronics
- Surveillance systems
- Command & control systems
- Automation for defence and border security
The company is considered one of India’s fast-growing private defence manufacturers, with multiple government projects already delivered.
Impact of the Acquisition
1. Benefits for Apollo Micro Systems
- Gains complete explosive manufacturing capability
- Can offer combined electronics + explosive solutions under one roof
- Higher chances of export contracts
- Stronger position among India’s private defence players
2. Impact on India’s Defence Sector
- Boost to “Make in India” and defence self-reliance
- Enhanced private-sector participation in strategic defence areas
- Sensitive explosive assets now move to a fast-growing Indian tech-driven company
Market & Investor View (Simple Analysis)
- Explosive manufacturing is a high-entry-barrier segment; entering it strengthens AMS’s long-term revenue stability.
- The acquisition cost is relatively low, so it does not strain the company’s finances.
- With growing defence contracts in India, analysts see this move as beneficial for future revenue growth.
- AMS becomes a more comprehensive player in the defence ecosystem.
Outcome
Apollo Micro Systems’ acquisition of IDL Explosives marks a major milestone in India’s private defence landscape.
The deal transforms AMS from a defence electronics company into a multi-capability defence manufacturer, giving it access to sensitive explosive technologies and stronger opportunities in both domestic and international defence markets.
Source: AMS Press
