Apollo Micro Systems has informed stock exchanges about a major expansion initiative in Telangana, bringing the company’s shares into focus. The company plans to set up a new greenfield manufacturing and testing facility in Hyderabad as part of its long-term capacity expansion strategy in the defence segment.

Land Acquisition for New Hyderabad Facility

Apollo Micro Systems has been allotted two industrial plots at the TSIIC Hardware Park Phase II in Hyderabad, with a combined land area of 22,988 square metres. The land has been acquired at a price of ₹12,000 per square metre, resulting in a total investment of ₹27.58 crore.

The newly acquired plots are located next to the company’s upcoming unit, enabling Apollo Micro Systems to expand its campus footprint and consolidate future operations at a single location.

Planned Manufacturing and Testing Capabilities

The company intends to develop the site into an integrated facility covering manufacturing, assembly, integration, and testing of defence weapon system platforms. Planned production at the facility includes Grad rockets, anti-submarine warfare rockets, anti-tank mines, artillery munitions, and other related defence products.

The estimated capital expenditure for establishing the new facility is around ₹300 crore, reflecting the scale of the proposed expansion.

Linked to Telangana Investment Commitment

The expansion forms part of a memorandum of understanding (MoU) signed with the Government of Telangana during the Telangana Rising Global Summit 2025. The project aligns with the company’s commitment to strengthen indigenous defence manufacturing and support long-term growth in the aerospace and defence sector.

Management Commentary

According to the company’s management, the proposed facility will significantly enhance manufacturing and testing infrastructure while allowing operations to be streamlined within a single campus. The expansion is expected to cater to growing demand for defence systems and support a gradual scale-up of production capacity.

Summary

Apollo Micro Systems has announced a greenfield expansion in Hyderabad through the acquisition of industrial land at TSIIC Hardware Park Phase II. With a total land investment of ₹27.58 crore and a proposed capex of around ₹300 crore, the new facility will focus on manufacturing and testing defence weapon systems. The project, undertaken as part of the company’s agreement with the Telangana government, is aimed at boosting domestic defence manufacturing and supporting long-term growth.

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