JSW boosts defence play with Rs 1,200-cr expansion
To scale steel capacity to 41 mn tonnes by 2028 as part of a Rs11,000-cr expansion plan
JSW Group has accelerated its foray into the defence sector with a major investment push and the launch of a new unmanned aerial vehicle (UAV) manufacturing facility developed in partnership with US-based Shield AI.
Parth Jindal, Chairman, JSW Defence, in an interaction with media in Hyderabad, outlined the roadmap, ongoing supplies to the Indian Army and the US, and its long-term expansion strategy in both defence and steel. JSW’s first defence venture - a specialist mobility vehicle facility in Chandigarh - has already supplied around 200 vehicles to the Indian Army and the UN. The unit, commissioned 18 months ago, also houses a joint venture with American firm Tomcar to manufacture off-road light mobility vehicles.
He said the company’s latest venture is a UAV manufacturing facility being set up under a technology-transfer and licensing agreement with Shield AI. The plant will produce the V BAT, a leading vertical take-off ISR (intelligence, surveillance and reconnaissance) drone considered the first of its kind globally.
JSW plans to invest a total of Rs1,200 crore across its two defence ventures — Rs850 crore for the new UAV unit and Rs350 crore for the Chandigarh facility.
So far, Rs320 crore has already been invested in the UAV project, including technology acquisition, training programmes in the US, procurement of the first five V BAT systems, and land development. The remaining Rs500 crore will be invested by November 2026.
The Indian Armed Forces are currently evaluating the V BAT system. While a small emergency procurement order for eight systems is being fulfilled directly by Shield AI, larger orders will follow once the Indian facility becomes fully operational.
Parth Jindal said the new Hyderabad unit will generate 300 direct jobs and create 1,500 indirect jobs through component suppliers and vendors. The plant’s initial capacity is 300 UAVs per year, expandable to 450 units. Shield AI has already committed export orders for 50 units in year one, 150 in year two, and 300 in year three, totaling 500 UAVs. The company also shared updates on JSW Steel’s expansion. When JSW went public, it had a 20-million-tonne capacity.
