Apollo Defence Industries Private Limited, a subsidiary of Apollo Micro Systems Limited, has signed a definitive agreement to acquire 100% equity in IDL Explosives Limited from GOCL Corporation Limited for INR 1.07 billion. The acquisition, structured as a cash transaction, is expected to be completed within two to three months subject to regulatory and corporate approvals.
IDL Explosives, incorporated in 2010 and currently operating solely in India, manufactures and supplies bulk explosives used primarily in mining and infrastructure projects. In FY 2023–24, the company reported a turnover of INR 6.23 billion and a net worth of INR 100 million. The agreed acquisition price is INR 136.04 per share for 78.65 million shares.
Apollo stated that the acquisition aims to expand its presence in defence explosives manufacturing to support demand in artillery, missile, and other high-impact defence sectors. “The acquisition will enhance our capabilities by complementing our electronics, mechanical systems, and platform-level solutions with proven explosive manufacturing capabilities,” said Karunakar Reddy Baddam, Managing Director of Apollo Micro Systems.
IDL Explosives currently offers a portfolio of products including bulk explosives, packaged explosives, initiating systems, and electronic detonators. The company operates five manufacturing units located in Rourkela (Odisha), Waidhan (Madhya Pradesh), Kelzar (Maharashtra), Hyderabad (Telangana), and Singrauli (Madhya Pradesh).
Post-acquisition, Apollo plans to introduce a new range of defence-specific explosives, including warheads, thermobaric explosives, high-energy materials, and fuze systems. These additions are intended to position Apollo as a full-spectrum supplier of weapon systems and ammunition components.
According to the investor presentation, the Indian industrial explosives market is projected to grow from INR 75 billion to INR 120 billion by FY 2030. The defence segment within this market is anticipated to expand at a compound annual growth rate (CAGR) of 11–13%. Apollo sees an opportunity to participate in this growth through new product lines and enhanced manufacturing capacity.
Apollo Defence Industries is focused on becoming a Tier-I original equipment manufacturer (OEM) in weapon systems. The company’s business spans design and manufacturing of weapon system electronics, sub-systems, platforms, and now, explosives. With the acquisition of IDL Explosives, Apollo intends to consolidate its capabilities into a single integrated defence manufacturing platform.