JSW Defence’s UAS Factory in Hyderabad.
JSW Defence’s UAS Factory in Hyderabad, India: Hyderabad, India – December 2, 2025: In a significant step towards boosting India’s defence capabilities and self-reliance in unmanned aerial systems (UAS), JSW Defence Pvt. Ltd., part of the US$ 23 billion JSW Group, today officially commenced construction of its next-generation UAS manufacturing facility in Hyderabad. This state-of-the-art facility, located at EMC Maheshwaram, will be a cornerstone in India’s ambition to lead the global defence technology market, particularly in the realm of military drones.
JSW Defence, through a strategic partnership with Shield AI – a US-based leader in defence technology – will manufacture the Group 3 UAS, V-BAT, a cutting-edge unmanned aerial system renowned for its vertical takeoff and landing (VTOL) capability. The facility will be a major milestone in India’s journey to self-sufficiency, creating a local production hub for UAS that will not only cater to the Indian Armed Forces but also serve international markets.
This ambitious project has seen an initial investment of US$ 90 million from JSW Group, which will be used to build a world-class manufacturing plant, establish a robust local supply chain, and train a skilled workforce. The facility is expected to begin operations by the last quarter of 2026 and will play a pivotal role in the Transfer of Technology (ToT) agreement that forms the core of the partnership between JSW and Shield AI.
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Strategic Partnership with Shield AI
The partnership with Shield AI is a game-changer for India’s defence sector. Shield AI, known for its groundbreaking work in unmanned systems, will transfer the technological expertise needed to produce V-BAT at scale in India. This will ensure that the Indian Armed Forces have access to cutting-edge ISR (Intelligence, Surveillance, and Reconnaissance) capabilities, essential for modern warfare. The V-BAT, with its unique vertical takeoff and landing design, is already deployed by several armed forces globally, including the United States Marine Corps, and its Indian production will be a significant step in advancing India’s military preparedness.
Sarjan Shah, Managing Director of Shield AI for India, expressed confidence in the partnership. He said, “Shield AI is proud to work with JSW in creating an indigenous production ecosystem for the V-BAT. This facility will deepen Indo–US defence collaboration, and JSW’s scale and industrial expertise make them the perfect partner to expand the global footprint of the V-BAT.”
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Parth Jindal’s Vision for India’s Defence Future
The foundation stone of the new facility was laid by Parth Jindal, the managing director of JSW Group, in the presence of key dignitaries, including Duddilla Sridhar Babu, Minister for IT, Electronics & Communications, and Industries & Commerce, Telangana, along with senior officials from the state government, the Indian Armed Forces, and Shield AI.
Jindal, in his address, emphasized the importance of the project not just as a business venture but as a transformative step for India’s defence sector. “Today’s milestone signals a bold new chapter in India’s journey towards self-reliance in next-generation defence technologies. Our collaboration with Shield AI reflects our shared ambition to bring mission-critical, globally benchmarked capabilities to India,” Jindal said.
“From manufacturing the globally renowned V-BAT at scale, the facility will lay the foundation for an integrated UAS ecosystem, from advanced manufacturing to operator training, MRO (Maintenance, Repair, and Overhaul), and sustained innovation. This project stands among the most significant defence technology transfers to India and underscores our unwavering commitment to strengthening the country’s strategic capabilities.”
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The V-BAT: A Game-Changer in Modern Warfare
The V-BAT is a highly advanced, fixed-wing, vertical takeoff and landing unmanned aerial system that offers unmatched capabilities in intelligence, surveillance, and reconnaissance. Its ability to take off and land vertically makes it a perfect solution for forward-deployed operations in difficult terrain, where traditional drones would not be able to operate. The system has already been deployed by US Marine Expeditionary Units (MEUs) and has proven its ability to deliver mission-critical ISR data in some of the most complex combat environments.
One of the standout features of the V-BAT is its patented ducted fan design, which allows for a small logistics footprint and rapid deployment. The system’s endurance and versatility make it ideal for a wide range of military operations, including support for special forces, frontline infantry, and armored units. As India looks to modernize its defence infrastructure and ensure readiness for future conflicts, the V-BAT’s advanced capabilities will undoubtedly play a pivotal role in the country’s defence strategy.
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A Step Towards Aatmanirbhar Bharat
This project aligns with the Indian government’s vision of Aatmanirbhar Bharat (self-reliant India), aimed at reducing dependence on foreign defence equipment and fostering indigenous defence manufacturing. The establishment of this facility in Telangana will not only bolster national security but also create thousands of high-quality jobs, contributing to the state’s economic growth.
Duddilla Sridhar Babu, the Minister for IT and Industries & Commerce, Telangana, praised the project, saying, “This partnership between JSW and Shield AI is a testament to Telangana’s growing importance as a hub for high-tech manufacturing. We are proud to host this state-of-the-art facility, which will contribute significantly to India’s defence sector and create numerous employment opportunities for our youth.”
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Strengthening India’s Defence Ecosystem
JSW Defence’s new facility in Hyderabad is part of a broader strategy to create a robust defence manufacturing ecosystem in India. The facility will not only focus on the assembly and testing of V-BATs but will also foster innovation in unmanned systems technology, helping India build a self-sustaining ecosystem for the development, manufacturing, and maintenance of UAS.
The creation of a local production hub for V-BATs is expected to reduce the Indian military’s reliance on imports and boost the country’s defence self-sufficiency. The partnership with Shield AI is expected to serve as a blueprint for future collaborations between India and the United States, particularly in the defence technology sector.
As the facility progresses towards its opening in 2026, the V-BAT’s arrival on Indian soil will mark a significant leap forward in India’s journey to becoming a global leader in unmanned aerial systems technology. Through this venture, JSW and Shield AI are not only advancing India’s military capabilities but also contributing to the country’s economic development and strategic autonomy on the global stage.
The partnership signals a new era of Indo-US defence collaboration, one built on shared technological expertise, strategic priorities, and a commitment to building a secure and self-reliant future for India.
