JSW Defence, a key arm of the JSW Group, has launched a $90 million project in Hyderabad through a strategic partnership with US-based Shield AI to manufacture advanced military drones.

The initiative kicked off with the construction of a dedicated facility at EMC Maheshwaram, where production of Shield AI's V-BAT Group 3 Unmanned Aerial Systems is slated to commence by the final quarter of 2026.

This collaboration emphasises technology transfer under a long-term licensing arrangement, positioning India as a hub for both domestic supply and global exports.​

The investment totals around $90 million over two years, with $65 million allocated in the first year to establish compliance programmes, build the manufacturing plant, and train personnel. This will create a local supply chain for V-BAT assembly, testing, and integration, tailored to meet the Indian armed forces' requirements while enabling large-scale output.

The facility aims to provide end-to-end services, including flight operator training and maintenance, repair, and overhaul, fostering self-reliance in unmanned systems.​

The foundation stone-laying ceremony occurred on 2 December 2025, led by Parth Jindal of the JSW Group, alongside Telangana's Minister for IT, E&C, and Industries & Commerce, Duddilla Sridhar Babu, and representatives from Shield AI and the Indian military

 Jindal highlighted the project's role in advancing India's defence self-reliance by introducing mission-critical technologies. Sarjan Shah, Shield AI's Managing Director for India, praised JSW's industrial prowess, noting it aligns with deepening Indo-US defence ties built on trust and shared priorities.​

V-BAT represents a versatile Group 3 UAS with a wingspan of 3.8 metres, height of 2.9 metres, and maximum gross takeoff weight of 73 kg, powered by a heavy-fuel engine compatible with JP5. It excels in intelligence, surveillance, and reconnaissance missions, including deep-penetration operations in GPS- and communications-denied environments, with endurance exceeding 10 hours and a service ceiling up to 20,000 feet.

Features like ducted-fan propulsion, unassisted vertical launch and landing in high winds, SATCOM for beyond-line-of-sight control, and AI-driven ViDAR sensors enhance its tactical utility across land and maritime domains.​

This partnership builds on prior JSW-Shield AI engagements and supports India's shift towards indigenous production of sophisticated drones, potentially shortening procurement timelines and cutting costs for the armed forces.

Initial units could enter Indian Air Force service as early as 2026 under emergency procurement, with full-scale manufacturing ramping up by late 2027. Shield AI's President Brandon Tseng underscored V-BAT's cost-effectiveness compared to larger UAS, aligning with global trends towards AI-piloted swarms in modern warfare.

Based On PTI Report