ValueQuest Investment Advisors has strengthened its focus on India’s defence sector through its latest investment commitments, including backing Sagar Defence Engineering, a company specialising in indigenous defence technologies and autonomous systems.

The Mumbai-based investment firm, which manages approximately $3.31 billion across public and private markets, announced a new investment in Sagar Defence Engineering as part of a broader capital deployment initiative. The move reflects ValueQuest’s conviction in businesses positioned to benefit from defence indigenisation and the growing strategic importance of domestic technology development.

Sagar Defence Engineering develops indigenous defence solutions, with a particular focus on unmanned and autonomous systems for maritime and other defence applications. The company is well placed to capitalise on increasing adoption of autonomous technologies across military operations and India's continued push towards self-reliance in defence capabilities.

The investment comes at a time when India is accelerating efforts to reduce dependence on imported defence equipment and strengthen its domestic defence manufacturing ecosystem. Autonomous and unmanned platforms are becoming increasingly important in modern military operations, especially across surveillance, reconnaissance and maritime security missions.

Commenting on the broader investment thesis, Ravi Dharamshi, Founder and Chief Investment Officer of ValueQuest, said: “India is entering a defining phase in its industrial evolution. Global supply chains are being realigned, technological sovereignty is becoming a strategic priority, and a sustained industrial investment cycle is creating opportunities for Indian businesses to move up the manufacturing value chain.

The opportunity is not simply for India to manufacture more, but for Indian companies to develop the technology, capabilities and customer relationships to become globally competitive enterprises.”

According to ValueQuest, the investment was identified through a pipeline developed over the past 12 to 18 months, supported by thematic research and engagement with entrepreneurs. The firm views defence technology as a long-term strategic opportunity as governments and armed forces increasingly prioritise domestically developed and technologically advanced systems.

The commitment also reinforces ValueQuest’s growing private equity platform, which manages more than ₹6,000 crore, including co-investments. The firm is currently building SCALE Fund-II, its third investment vehicle, following the experience gained through SCALE Fund I.

Founded in 2010, ValueQuest continues to seek opportunities in sectors aligned with India's strategic priorities. Its investment in Sagar Defence Engineering highlights growing investor confidence in indigenous defence technology companies as the country advances its defence modernisation and self-reliance agenda.

Agencies