“SMPP Limited, which began with expertise in ballistic protection, is in a transition phase and moving towards a very different part of the defence industry: modern warfare.” Now, with a focus on precision-guided munitions, drones, and unmanned aerial weapons, the company is adding smart military technology to its portfolio. The shift is somewhat expected, considering the Indian military solutions company’s recent international tie-ups and product development plans. In 2026, the Indian armed forces are prioritising advanced defence tools. The greater emphasis is on technologies that can operate across digital battlefields.
In June 2026, SMPP signed a teaming agreement with European defence group KNDS. The deal included the manufacturing of loitering munitions, also called kamikaze drones and ISTAR drone systems. This brings a boost for domestic production and the government’s Make in India initiative, as the manufacturing will take place in India.
The agreement outlines KNDS systems (technology transfer with domestic production) and covers UAVs like VELOCE, RODEUR and the ISTAR family. The technology transfer and local manufacturing form part of the arrangement.
Such leaps often reflect how a company moves away from the areas for which it has traditionally been known. Over the years, the defence solutions company has built a reputation in the industry centering on ballistic protection, armour and ammunition. Their present focus is on unmanned systems that bring software, sensors, communications and autonomous operation — all these digital warfare necessities into the picture.
New Approach To Modern Defence Business
Today, the military has different expectations from defence solution-offering companies as opposed to their demands in the past. In 2026, armed forces are upgrading their ammunition portfolio and are on the lookout for new-age unmanned mechanisms such as drones and loitering munitions. This is simply because the rise of unmanned warfare has created a new demand for the armed forces from defence manufacturers. Now, a drone can be optimised for reconnaissance, surveillance, targeting, logistics or strike missions. On the other hand, loitering munitions offer both surveillance and precision attack via a single platform.
As per SMPP, they were able to shift from sheer ballistic protection to drones mainly because of their existing ammunition expertise. Chief Executive Officer Ashish Kansal explained the reason for the expansion during an interview. He stated that, “Since we already had deep expertise in ammunition, we decided to integrate ammunition technology with drones.”
This shows that the company is serious about its digital artillery ambitions. It has no intention of portraying itself as simply a new entrant into autonomous warfare. The move is connected to capabilities it already possesses, while taking those competencies to a new technological era.
Building the Capability Around the Technology
The next question is whether manufacturing drones will be a permanent part of the company’s existing business. Or, whether it will become a substantial business in its own right. The deployment of platforms like the SMPP Kamikaze, along with the production of other powerhouses, reflects the company’s technical execution and delivery capabilities.
SMPP India has indicated that it is working towards dedicated drone manufacturing capabilities. They have plans involving Bengaluru and Delhi. As of now, the ammunition production remains centred in Nalagarh. Mr Kansal has also expressed interest in developing better control over components such as high-resolution imaging systems.
From its beginnings in 1985 as a maker of biodegradable pulp packaging, the company has undergone a remarkable transformation. Four decades later, it stands on the threshold of a 2026 public offering as a provider of advanced armour solutions. The trajectory from modest origins to a complex defence enterprise reflects a long journey worth examining in detail.
What SMPP’s Future May Look Like
SMPP’s move into digital and unmanned warfare is still taking shape. The company has the manufacturing background, ammunition expertise and international partnerships to pursue the opportunity, but the longer-term significance will depend on how successfully those capabilities develop into a sustainable business.
For now, the direction is clear enough for SMPP to be no longer operating only in the traditional territory of protection and survivability; it is moving in a different direction with a clear intention of exploring more of the digital armour solutions space.
Its growing interest in kamikaze drones, precision-guided weapons and loitering munitions places it in a part of hybrid defence warfare technologies where the boundaries between hardware, software and battlefield intelligence are becoming increasingly difficult to separate.
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