A major step in India’s defence manufacturing push has been announced as JSW Defence, part of the JSW Group, partners with United States based Shield AI to set up a new drone production facility in Hyderabad. The project carries a total investment of 90 million dollars, roughly between 809 and 850 crore rupees, and will focus on producing the VBAT unmanned aerial system at a newly built unit in the city.
The facility will come up in the EMC Maheshwaram electronics cluster. Under a long term licensing and technology transfer agreement, JSW Defence will oversee manufacturing, assembly, and testing of the drones while also developing a local supply chain. Production is targeted to begin by the last quarter of 2026.
The VBAT is a Group 3 drone with vertical take off and landing capability and a fixed wing structure. It is designed for long endurance missions and is widely used for intelligence, surveillance, and reconnaissance operations. Several military forces across the world already deploy this system.
Company leaders said the partnership supports India’s goal of strengthening defence self reliance and creating a strong unmanned aircraft ecosystem. The upcoming Hyderabad unit is expected to serve the needs of Indian defence forces and may also become a global manufacturing hub for the VBAT platform.
The foundation stone for the facility has been laid at an event attended by senior JSW representatives, Shield AI officials, and members of the Telangana government. The project aligns with broader national plans to expand indigenous defence production and promote advanced technology development.
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