Watch out! Adani may raid the defence sector

The Adani Group is planning to invest in defence and aerospace production, thanks to Modi’s 'Make in India' campaign.

According to media reports, the company is in talks with international defence companies for a strategic partnership to set up a defence manufacturing hub in India. It has been pitching its main asset — the country's largest private port with it’s sea and land links and the SEZ at Mundra in Gujarat.

Sweden’s Saab is among the few companies being approached for these partnerships. The Swedish giant is already eyeing to set up production facilities in India. It wants major projects like the Rs 60,000-crore P-75I submarine contract and has proposed to manufacture the light Gripen fighter jet in India.

Sources say Adani may also consider defence firms like Italy's Finmeccanica and US based Textron. The later owns BAE, which is being reviewed for a $700 million contract to supply howitzer guns to India.

The Adani Group is the first among large Indian conglomerates to want to invest in defence and aerospace. Just last month the group has applied to the department of industrial policy & promotion for a licence to manufacture helicopters under a new name — Adani Defence Systems & Technologies Ltd. The sector has immense potential given that the country is one of the world's largest spenders in this area.

(Image credit:Adani)