SOURCE: AFI
In a significant move to strengthen its defence manufacturing capabilities, Apollo Defence Industries Private Limited (ADIPL), a wholly owned subsidiary of Hyderabad-based Apollo Micro Systems Limited (AMS), has signed a Share Purchase Agreement (SPA) on May 2, 2025, to acquire 100% equity of IDL Explosives Limited for ?107 crore in an all-cash transaction.
IDL Explosives, a subsidiary of GOCL Corporation under the Hinduja Group—one of the largest diversified transnational conglomerates with a presence in over 100 countries—is a leading manufacturer of packaged and bulk explosives for mining and infrastructure projects. The acquisition, expected to close within two to three months pending regulatory approvals, marks a strategic leap for Apollo Micro Systems as it expands into defence explosives, aligning with India’s push for self-reliance in defence production. This article explores the details of the deal, the significance of IDL Explosives, and its implications for India’s defence and industrial sectors.
The acquisition involves ADIPL purchasing 78.65 lakh equity shares of IDL Explosives at ?136.04 per share, totaling ?107 crore, as announced by Apollo Micro Systems in a stock exchange filing on May 2, 2025. IDL Explosives, incorporated in 2010, is a wholly owned subsidiary of GOCL Corporation, part of the Hinduja Group. The deal, described as a “landmark alignment” by AMS Managing Director B. Karunakar Reddy, integrates IDL’s 64-year legacy in explosives manufacturing with Apollo’s expertise in defence electronics and weapon systems. The transaction involves no related parties, ensuring transparency, and is set to enhance Apollo’s portfolio in artillery, missile, and high-impact weapon platforms.
IDL Explosives, based in Hyderabad, is a well-established player in the industrial explosives sector, primarily serving India’s mining and infrastructure industries. With a reported FY24 revenue of ?623 crore, the company manufactures a full range of packaged and bulk explosives, including cartridge explosives, tailored for applications like open-cast and underground mining, tunnelling, and infrastructure development. Its product portfolio includes slurry explosives, emulsion explosives, and detonators, known for their reliability and precision in high-stakes projects.
As part of the Hinduja Group, a global conglomerate with investments in automotive, energy, finance, and healthcare across over 100 countries, IDL Explosives benefits from a robust legacy and operational expertise. Established over six decades ago, it has built a reputation as India’s first explosives company, with a strong domestic focus and a client base spanning major mining and infrastructure firms. The acquisition enables Apollo to leverage IDL’s manufacturing infrastructure and market presence, integrating explosives production with its defence-focused offerings.
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