In a significant development for India's defence manufacturing sector, the Tembo Group is set to establish Maharashtra's first-ever handgun production facility in Amravati. The company has secured a crucial defence manufacturing licence and aims to commence operations by September this year.
Ambitious Production Plans and Investment
The company's initial plan involves setting up a unit with an annual capacity to manufacture 30,000 pistols of 1911 .45 calibre. Speaking to TOI, the company's Managing Director, Sanjay Patel, revealed that production would begin with a phase-one capacity of 15,000 pistols per year. The broader vision includes establishing a separate unit within the next two years with a staggering capacity to produce 12 crore (120 million) bullets annually.
This ambitious project is backed by substantial financial commitment. Tembo Group is investing Rs 700 crore in the first phase, followed by an additional Rs 300 crore in subsequent phases. The Amravati unit will operate under Tembo Classic Engineering, a subsidiary of the listed entity Tembo Global.
International Collaboration and Market Strategy
The venture is bolstered by a key international partnership. Patel confirmed that the Tembo Group received a Transfer of Technology (TOT) from an Austrian company. Furthermore, they have entered into a 100% buyback agreement with this Austrian entity, which has committed to purchasing the entire production output. The name of the Austrian partner remains confidential due to a non-disclosure agreement.
While the initial production is destined for the global market via this buyback pact, Patel indicated there are plans to explore the domestic Indian market for these firearms as well. He highlighted the huge demand for small arms globally, presenting a significant opportunity.
A Strategic Diversification into Defence
This foray into defence manufacturing marks a strategic diversification for the Tembo Group. Originally an engineering firm, the company actively sought expansion opportunities in high-growth sectors like defence, automotive, and aerospace. The search for a foreign technological partner led them to strike the deal with the Austrian pistol manufacturer, paving the way for this landmark project.
The establishment of this factory fills a notable gap in Maharashtra's industrial landscape. Currently, the government-owned ordnance factories in the state are limited to ammunition production. The Tembo facility will be the first in Maharashtra dedicated to manufacturing handguns, aligning with the central government's 'Make in India' initiative for defence self-reliance.
The project is moving forward on the 100 acres of land allotted to Tembo Group in Amravati last year. If the plans proceed on schedule, the state will witness the rise of a new, technologically advanced defence manufacturing hub by the end of this year.
