Hyderabad: VEM Technologies Private Ltd, a Hyderabad-based aerospace and defence player, has secured a growth capital investment of Rs 185 crore from InCred Alternative Investments, marking a fresh private equity bet on India’s expanding indigenous defence manufacturing sector.
Investment Details
The investment was made through InCred Growth Partners Fund-I and InCred Growth Partners Fund-II and consists of primary growth capital, the company said on Wednesday. InCred Alternative Investments is the alternative investment arm of InCred Capital Financial Services Ltd.
Utilisation of Funds
The funds will be used to support VEM Technologies’ expansion, including capacity enhancement, advanced manufacturing infrastructure and a new state-of-the-art manufacturing facility.
Company Background
Founded in 1988 by V Venkata Raju and family, VEM Technologies is a private-sector defence and aerospace manufacturer with capabilities in system engineering, integration, design, manufacturing and quality assurance. The company supplies critical components and systems for strategic missile programmes such as BrahMos, Akash and Prithvi.
Industry Context
The deal comes even as India’s defence manufacturing industry is seeing stronger localisation, rising capital expenditure, policy support and increasing export opportunities, attracting growing investor interest in companies positioned to benefit from the government’s push for indigenisation and domestic production.
Executive Comments
Vivek Singla, managing partner and CIO, InCred Alternative Investments, said VEM Technologies had strong technological expertise, a proven execution track record and a strategic position in India’s defence ecosystem. He said the sector offers a compelling long-term opportunity driven by structural reforms and indigenous manufacturing.
V Venkata Raju, founder, chairman and managing director, VEM Technologies, said the funding would help the company strengthen manufacturing infrastructure and expand capabilities in complex defence and aerospace systems to meet rising domestic and international demand.
InCred Growth Partners is a private equity platform backed by InCred Capital Financial Services, focused on founder-led Indian businesses in sectors of national importance.
