Tembo Global has entered the defense manufacturing sector through its subsidiary, Tembo Classic Engineering Pvt Ltd, leveraging its existing expertise in precision engineering and industrial manufacturing to align with India's accelerated focus on self-reliance. The company has secured a crucial ammunition manufacturing license and plans to initially focus on small-calibre ammunition and related components, with a significant milestone being the establishment of a ₹1,000 crore arms and ammunition manufacturing facility in Amravati, Maharashtra, which will include India's first handgun manufacturing unit and substantial ammunition production capacity, and they are actively pursuing technology transfer partnerships with international firms to enhance their product portfolio and export capabilities, viewing defense exports as a key component of their long-term growth strategy.

Tembo Global has entered the defense manufacturing sector through its subsidiary, Tembo Classic Engineering Pvt Ltd, leveraging its existing expertise in precision engineering and industrial manufacturing to align with India's accelerated focus on self-reliance. The company has secured a crucial ammunition manufacturing license and plans to initially focus on small-calibre ammunition and related components, with a significant milestone being the establishment of a ₹1,000 crore arms and ammunition manufacturing facility in Amravati, Maharashtra, which will include India's first handgun manufacturing unit and substantial ammunition production capacity, and they are actively pursuing technology transfer partnerships with international firms to enhance their product portfolio and export capabilities, viewing defense exports as a key component of their long-term growth strategy.

Tembo Global has entered the defense manufacturing sector through its subsidiary, Tembo Classic Engineering Pvt Ltd, leveraging its existing expertise in precision engineering and industrial manufacturing to align with India's accelerated focus on self-reliance. The company has secured a crucial ammunition manufacturing license and plans to initially focus on small-calibre ammunition and related components, with a significant milestone being the establishment of a ₹1,000 crore arms and ammunition manufacturing facility in Amravati, Maharashtra, which will include India's first handgun manufacturing unit and substantial ammunition production capacity, and they are actively pursuing technology transfer partnerships with international firms to enhance their product portfolio and export capabilities, viewing defense exports as a key component of their long-term growth strategy.

In an interview with THE WEEK, Sanjay Patel, managing director of Tembo Global, speaks about the company's entry into the defence sector, its manufacturing roadmap, investment plans, export ambitions, technology partnerships and his vision for Tembo's role in India's evolving defence ecosystem.

Q: Tembo Global has entered the defence manufacturing sector with the subsidiary, Tembo Classic Engineering Pvt Ltd. What does this diversification mean for the company, and why was now the right time to make this move?

Our entry into defence manufacturing through Tembo Classic Engineering marks a significant step in Tembo Global's long-term growth strategy. With India accelerating its focus on self-reliance and increasing investment in defence manufacturing, the sector offers strong opportunities for capable domestic manufacturers.

Over the years, Tembo has built expertise in precision engineering, metal fabrication and industrial manufacturing. These capabilities are well aligned with the quality and reliability standards required in defence production.

Q: Where do you see Tembo fitting into India's evolving defence manufacturing ecosystem?

Our strengths in precision manufacturing, fabrication and project execution enable us to supply high-quality defence components and systems. As domestic supply chains continue to expand, we believe Tembo can contribute through engineering excellence, robust manufacturing infrastructure and strategic partnerships, while supporting India's ambition of becoming a global defence manufacturing hub.

Q: Tembo Classic Engineering has been granted a government licence for ammunition manufacturing. What products do you intend to focus on initially, and what is the roadmap for scaling up production?

Receiving the ammunition manufacturing licence is a major milestone for Tembo Classic Engineering. In the first phase, we will focus on manufacturing small-calibre ammunition and related components for defence, paramilitary and law enforcement agencies. As we scale operations, we plan to expand production capacity, invest in advanced manufacturing technologies and strengthen our capabilities through strategic partnerships.

Q: What are the immediate priorities for Tembo Classic Engineering?

Our immediate priorities are to establish strong manufacturing capabilities, expand our defence product portfolio and build strategic partnerships with defence organisations and OEMs.

Q: What are some of the milestones achieved by the defence arm in the past few months/years?

One of our most significant milestones has been signing a Memorandum of Understanding with the Government of Maharashtra at the World Economic Forum in Davos for the allocation of 100 acres in Amravati to establish a state-of-the-art arms and ammunition manufacturing facility with a planned investment of ₹1,000 crore.

The facility is expected to house Maharashtra's first handgun manufacturing unit with an initial production capacity of 15,000 pistols annually, scalable to 30,000 units, along with ammunition manufacturing capacity of up to 12 crore rounds per year. We are also pursuing Transfer of Technology partnerships with international defence companies to strengthen our product portfolio and support exports.

Q: What has been the biggest challenge in entering a highly competitive sector like defence manufacturing, where there are several established players, including the DPSUs?

Defence manufacturing demands exceptionally high standards of quality, reliability and regulatory compliance. For any new entrant, building credibility takes time and requires significant investment in technology, infrastructure and skilled talent.

While the sector is highly competitive, we see this as an opportunity to differentiate ourselves through engineering excellence and long-term commitment.

Q: Tembo has decades of experience in the manufacturing and fabrication of metal products. How do these capabilities translate into defence manufacturing, and what competitive advantage do they provide?

Tembo's four decades of experience in precision engineering and industrial manufacturing provide a strong foundation for defence production. Our expertise in machining, fabrication, quality control and process engineering is directly relevant to the stringent requirements of the sector. Combined with investments in advanced manufacturing and technology partnerships, these capabilities enable us to deliver reliable, high-quality defence products while accelerating our growth in this specialised industry.

Q: How much of your existing manufacturing infrastructure and expertise can be leveraged for defence production?

A significant portion of our engineering expertise and manufacturing capabilities can be leveraged for defence production.

Our established strengths in precision engineering, fabrication and quality systems provide a strong operational base.

These capabilities will be further enhanced through our upcoming arms and ammunition manufacturing facility in Amravati, allowing us to combine existing industrial expertise with specialised defence manufacturing infrastructure.

Q: India's defence exports have grown rapidly in recent years. Do you see exports becoming an important part of Tembo's defence business?

Yes. Exports will be an important part of our long-term growth strategy. India's defence exports are gaining momentum, supported by favourable government policies and growing global demand for quality defence products. With international-quality manufacturing, technology partnerships and an export-oriented approach, we believe Tembo Defence can build a competitive presence in global markets alongside serving domestic requirements.

Q: Will Tembo look at technology partnerships or collaborations to strengthen its defence capabilities?

Absolutely. Technology partnerships are central to our growth strategy. We are actively exploring Transfer of Technology arrangements and collaborations with reputed international defence companies to strengthen our product portfolio and accelerate capability development. Our proposed partnership with an Austrian defence company reflects this approach, enabling us to combine advanced global technology with indigenous manufacturing capabilities.

Q: With the Indian armed forces embarking on large-scale modernisation, where do you see the biggest procurement opportunities for companies like Tembo?

India's defence modernisation programme presents significant opportunities in small arms, ammunition and related defence systems. Increasing domestic procurement and greater emphasis on indigenous manufacturing are creating a favourable environment for private companies.

We are well-positioned to serve the requirements of the armed forces, paramilitary organisations and law enforcement agencies, while also exploring export opportunities.

Q: Do you expect the company's defence business to become a significant contributor to overall revenues in the coming years?

Yes. We believe the defence business has the potential to become a significant contributor to Tembo Global's overall revenues over the medium to long term. With India's continued focus on strengthening its defence capabilities through higher capital expenditure, greater indigenisation under the Atmanirbhar Bharat initiative, and increasing export opportunities, the sector offers strong long-term growth potential.

As we execute our growth strategy and secure more opportunities, we expect the defence segment to emerge as an important pillar of our business, complementing our existing engineering operations and contributing meaningfully to the company's long-term growth and value creation.

Q: Where do you see the biggest opportunities for private companies in India's defence manufacturing sector?

The biggest opportunities lie in indigenisation, technology-led manufacturing and defence exports. As the government continues to encourage private participation, companies with strong engineering capabilities and a commitment to quality can play a much larger role in developing advanced defence products.

Q: How do you assess the progress made under the Atmanirbhar Bharat initiative in defence manufacturing? What more needs to be done to encourage private industry?

The Atmanirbhar Bharat initiative has significantly strengthened India's defence manufacturing ecosystem by encouraging domestic procurement, indigenous development and greater participation from the private sector. Policy reforms, positive indigenisation lists and increasing collaboration between government, public sector undertakings and private companies have created new opportunities for Indian manufacturers to contribute across the defence value chain.

Going forward, faster and more predictable procurement processes, greater support for research and development, easier access to long-term financing and stronger technology transfer frameworks will further accelerate private sector investment and innovation. Promoting defence exports and fostering closer industry-academia collaboration will also help build a globally competitive and self-reliant defence manufacturing ecosystem.

Q: What role do you see MSMEs and private manufacturers playing in reducing India's dependence on defence imports?

MSMEs and private manufacturers will play a critical role in building a resilient domestic defence supply chain. Their strengths in innovation, specialised manufacturing and precision engineering can significantly reduce import dependence while supporting indigenous production.

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