In a significant boost to India's defence manufacturing capabilities, JSW Defence, a part of the $23 billion JSW Group, has announced a major investment to produce advanced American military drones locally. The company is pumping $90 million (around Rs 850 crore) into establishing a new facility in Hyderabad dedicated to manufacturing the next-generation V-BAT unmanned aerial systems (UAS) from US defence technology leader Shield AI.
A Strategic Partnership for Advanced Drone Technology
The investment is backed by a long-term licensing agreement with Shield AI, which includes a crucial transfer of technology (ToT). This pact allows JSW Defence to produce the cutting-edge drones within India. The V-BAT is a fixed-wing vertical take-off and landing (VTOL) drone, designed for long-endurance intelligence, surveillance, and reconnaissance (ISR) missions. Its unique, patented ducted design and small logistical footprint make it a preferred choice for modern armed forces, including the United States Marine Expeditionary Units (MEUs).
Ground was officially broken for the new plant on Tuesday. It is being constructed on a 16-acre site at EMC Maheshwaram in Hyderabad. The comprehensive facility will house production lines, repair units, testing areas, and administrative support blocks. Once operational, it is projected to have an annual production capacity of over 300 V-BAT drones. Manufacturing operations are scheduled to commence by the last quarter of 2026.
Building a Self-Reliant Defence Ecosystem
JSW Group stated that this venture will enable the establishment of a robust local supply chain and create an advanced manufacturing hub in India. The facility will not only assemble but also conduct full-scale manufacturing and testing of the V-BAT systems. The group emphasized that this effort is aimed at large-scale production to meet the requirements of the Indian Armed Forces while also positioning India as a global production hub for these drones.
Parth Jindal of JSW Group described the project as a new chapter in India's journey towards self-reliance in next-generation defence technologies. He stated, "From manufacturing the globally renowned V-BAT at scale, the facility will lay the foundation for an integrated, end-to-end UAS ecosystem, from advanced manufacturing to operator training, MRO, and sustained innovation." He highlighted that this initiative stands among the most significant defence technology transfers to the country.
Deepening Indo-US Defence Ties
Echoing the sentiment of strategic collaboration, Sarjan Shah, Managing Director of Shield AI, noted that the world-class facility will foster an indigenous ecosystem for the V-BAT platform. He pointed out that this partnership significantly deepens the defence collaboration between India and the United States, aligning with shared security interests and the 'Make in India' initiative. This move is seen as a concrete step in strengthening the defence industrial partnership between the two nations, reducing import dependency, and enhancing India's export potential in the high-tech defence sector.
