Defense Business and Industry

JSW Defence and Shield AI launch $90 million drone project in Hyderabad.

On December 2, 2025, JSW Defence partnered with US-based Shield AI to launch a $90 million military drone manufacturing project in Hyderabad, marking a significant milestone in India’s defense sector. The project involves the construction of a state-of-the-art facility at the Electronic Manufacturing Cluster in Maheshwaram, aiming to produce up to 300 advanced VBAT drones annually. This collaboration includes a long-term technology transfer agreement to indigenize the manufacture of Shield AI’s Group 3 Unmanned Aerial Systems, VBAT, known for its vertical take-off and landing capabilities, AI-driven sensors, and SATCOM for beyond-line-of-sight control. The initiative will establish a local supply chain, create around 300 skilled jobs, and position India as a global production hub for next-generation unmanned aerial vehicles. This strategic partnership reflects India’s commitment to defense self-reliance and enhancing its aerial defense technologies amid evolving regional security challenges. Operations at the facility are expected to commence by the last quarter of 2026. The launch event was graced by Parth Jindal of JSW Group and Telangana’s Minister for IT and Industries, underscoring the project’s national importance.

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