JSW Defense and Shield AI Advance Plans for Drone Manufacturing Hub in Hyderabad with USD 90 Million Investment

04-Dec-2025

JSW Defense Update Drone Manufacturing Hub

Key Takeaways:

Construction has begun on a new VBAT unmanned aerial system production plant in Hyderabad, backed by a USD 90 million Indo–US partnership.
The facility will support full technology transfer from Shield AI, enabling complete local manufacturing and future export operations.
Operations are scheduled to start by late 2026, building a domestic supply chain and MRO ecosystem for advanced unmanned platforms.
The plant strengthens India’s push for self-reliant defense manufacturing under the Aatmanirbhar Bharat program.

A Major Push for Home-Grown Defense Manufacturing:

JSW Defense Pvt. Ltd. has kicked off construction of a new unmanned aerial systems plant in Telangana, marking the start of a long-term collaboration with US-based Shield AI. The venture represents a USD 90 million commitment to set up an advanced production line for the VBAT platform in India, backed by full technology transfer for localized manufacturing.

Set inside the EMC Maheshwaram cluster, the site will produce the VBAT vertical take-off and landing system, a fixed-wing aircraft already used by the United States Marine Expeditionary Units and other global defense users. With complete production planned at the Hyderabad unit, JSW aims to create a manufacturing route that covers assembly, integration, testing, and lifecycle support.

Backed by Government Support and Strategic Vision:

The groundbreaking ceremony was led by Parth Jindal from the JSW Group, joined by Telangana IT and Industries Minister Shri Duddilla Sridhar Babu, senior representatives from the armed forces, state authorities, and Shield AI leadership. Their presence signaled strong institutional backing at both state and national levels.

Speaking at the event, Parth Jindal said the project reflects JSW’s intention to support India’s long-term defense needs and contribute meaningfully to local capability building. He also pointed out that the Hyderabad plant is being positioned to serve international customers, placing India on the global map for next-generation unmanned aircraft production.

Advanced Capabilities and a Scalable Ecosystem:

The VBAT features a patented ducted-fan configuration that allows vertical lift while maintaining long-range endurance. It is designed for intelligence, surveillance, and reconnaissance operations across varied terrain and can be deployed quickly in frontline scenarios due to its compact logistics footprint.

Shield AI India Managing Director Sarjan Shah noted that the facility is expected to anchor a larger ecosystem around autonomous air systems, with room for supplier development, local component sourcing, and specialist workforce training.

Once operational in late 2026, the plant will support maintenance, repair, and overhaul work for VBAT systems and develop structured programs for pilot instruction, mission training, and system integration. This approach is expected to cut reliance on imports and assist India’s broader goal of building a domestically rooted drone industry.

Strengthening Indo–US Industrial Collaboration:

The partnership between JSW and Shield AI mirrors the growing defense and trade cooperation between India and the United States. Analysts suggest that setting up a VBAT production line in India provides immediate strategic value, giving the country access to a platform already proven in active military environments.

Hyderabad remains a preferred destination for aerospace and defense investments due to its skilled workforce, infrastructure readiness, and state policies aimed at attracting high-technology industries. The new UAS plant is expected to draw further interest in adjacent fields like autonomy, AI-driven flight systems, and robotics.

Setting the Stage for Future Growth:

For JSW Group, the move adds a new dimension to its industrial portfolio, signaling a serious push into strategic sectors. With strong supply chain capabilities and the capital to support long-term projects, the company is preparing the ground for additional investments in defense technology.

By establishing what is positioned to become one of South Asia’s leading UAS manufacturing lines, JSW Defense and Shield AI are helping shape an aerospace ecosystem that can cater to domestic requirements while participating in global supply networks. The ceremony not only marked the start of construction but also outlined a wider ambition for India to design, build, and support high-performance defense platforms on its own soil.

About Author:

Poonam Sahu, Technology and Media Analyst

Poonam Sahu has 5 years of experience in technology and media market analysis, focusing on investment trends, technology adoption, and media production. She specializes in identifying emerging tech-driven industries and investment opportunities in data centers, media production facilities, and tech manufacturing, offering insights that guide businesses in their investment decisions.

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