Apollo Microsystems Shares Gain After Unit Secures Major Rocket Deal With US Firm
This is not the first time the Apollo Group has ventured into the rocket motor development business.
Shares of Apollo Micro Systems Ltd. have rallied in trade on Thursday after the company's subsidiary entered into a Memorandum of Understanding (MoU) with US-based company Defence Engineering and Design Inc.
The shares of Apollo Micro are trading with gains of more than 3% in trade, reaching an intraday high of Rs 294.
Apollo Strategic Technologies Pvt Ltd. (ASTPL), a step-down subsidiary of the company, reached an agreement with Defence Engineering and Design, in which the entity will co-develop and potentially produce rocket motors for BM-21 Grad ER and non-ER rockets.
The MoU serves as an "integral step towards indigenising propulsion technologies for multibarrel rocket systems and enhancing self-reliance in critical defence systems". It is part of the Make-In-India initiative, the company confirmed in an exchange filing.
What Are Grad Rockets?
The Grad Rocket, which is a 122 mm artillery rocket, is a staple of multi-barrel rocket launchers, such as the BM-21 system.
These rockets are widely used for area saturation and suppression missions and are valued for their rapid-fire capabilities. They are also known for their impressive range of up to 40 kilometres.
These rockets have a proven track record on the battlefield and are used by several countries for their defence capabilities.
Apollo Group's Expertise In Rocket Motors
This is not the first time the Apollo Group has ventured into the rocket motor development business.
The defence conglomerate had earlier successfully developed the 122 mm rocket warhead in-house. They are, in fact, poised to start immediate trials and are hoping to establish full-scale production by mid-2026.
This development will go a long way in helping Apollo integrate indigenously developed warheads with domestically produced rocket motors, which in turn could be a significant milestone in India's private defence manufacturing space.
Following this initiative, Apollo Group will also emerge as one of the private companies in India to offer a fully in-house-developed rocket system.
