Bharat Forge Commits ₹1,800 Crore Capex To Drive Growth In Aerospace, Defence, Semiconductors And Data Centres

Bharat Forge is committing ₹1,800 crore in capital expenditure across aerospace, defence, semiconductor components, data centres and power systems, while navigating short-term margin pressures.

Vice Chairman Amit Kalyani has confirmed a one-time ₹350 crore charge, revised revenue guidance, and plans to raise ₹2,500 crore to fund future expansion, signalling a bold long-term growth strategy despite global demand slowdown and rising energy costs.

Bharat Forge is currently facing margin pressures due to higher energy costs and a slowdown in global demand. The company has taken a one-time charge of ₹350 crore, which has impacted near-term profitability. Despite this, management remains confident in its long-term trajectory, revising revenue guidance to reflect current market realities while doubling down on strategic investments.

The company has announced an ambitious ₹1,800 crore CAPEX plan. This investment will be spread across aerospace, defence, semiconductor components, data centres and power systems.

The aerospace segment will see significant expansion, with Bharat Forge aiming to strengthen its role in both civil and military aviation supply chains. Defence remains a core pillar, with new projects expected to enhance India’s self-reliance in advanced platforms and systems.

In semiconductors, Bharat Forge is building on its earlier entry into lithography machine components, now scaling up to support India’s semiconductor ecosystem under the India Semiconductor Mission. The company’s push into data centres reflects the growing demand for digital infrastructure, with investments planned in high-capacity server systems and energy-efficient cooling technologies. Power systems will also receive attention, particularly in renewable-linked transmission and advanced turbine components.

To fund this expansion, Bharat Forge plans to raise ₹2,500 crore. This capital will provide flexibility for both organic growth and potential acquisitions, ensuring the company can seize opportunities in emerging sectors. The strategy aligns with India’s broader industrial and technological priorities, positioning Bharat Forge as a key player in aerospace, defence and semiconductor ecosystems.

Vice Chairman Amit Kalyani emphasised that while short-term pressures are real, Bharat Forge’s long-term vision remains intact. The company is balancing immediate challenges with structural investments that will define its future growth. He noted that global defence demand, India’s semiconductor ambitions, and rising digital infrastructure needs all converge to create a unique opportunity for Bharat Forge.

The company’s diversification into data centres and semiconductor components marks a significant evolution from its traditional manufacturing base. By integrating defence, aerospace and digital infrastructure, Bharat Forge is positioning itself as a multi-sector industrial powerhouse. This approach not only mitigates risks from cyclical downturns but also ensures relevance across multiple high-growth domains.

The expansion program will also strengthen Bharat Forge’s export footprint. With nearly 40% of defence sales already going overseas, the company expects new aerospace and semiconductor projects to further boost international revenues. This aligns with its strategy of combining domestic self-reliance with global competitiveness.

Overall, Bharat Forge is navigating short-term headwinds with a decisive long-term investment plan. The ₹1,800 crore capex, coupled with a ₹2,500 crore fundraise, underscores its ambition to be at the forefront of India’s industrial transformation. The company’s ability to balance immediate challenges with structural growth investments highlights its resilience and strategic foresight.

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L&T Vyoma, Fortanix Team Up To Deliver Confidential Computing For Sovereign AI Cloud With NVIDIA

Larsen & Toubro Vyoma has entered into a strategic partnership with Fortanix Inc to deliver sovereign and secure AI solutions in India.

The collaboration leverages NVIDIA Confidential Computing technology to ensure that sensitive data and AI workloads remain protected while enabling enterprises and government organisations to adopt AI confidently. This initiative is particularly aimed at regulated sectors such as banking, financial services, healthcare and government, where data sovereignty and compliance are critical.

L&T Vyoma, which represents the next-generation sovereign AI cloud and digital infrastructure business of Larsen & Toubro, will provide the sovereign AI infrastructure. This includes data centres, compute and networking capabilities.

Fortanix will secure the data and AI workloads in use by deploying confidential computing solutions powered by NVIDIA technology. This integration ensures that sensitive data remains within India’s borders, meeting regulatory requirements while enabling secure AI adoption.

The partnership is strategically focused on integrating Confidential AI into L&T Vyoma’s AI Factory model. This approach allows enterprises to deploy AI models securely without exposing proprietary intellectual property.

It protects sensitive enterprise and citizen data during processing, enables cryptographic verification of trusted environments, and supports compliance with India’s data sovereignty regulations. By embedding confidential computing into the AI Factory, the collaboration ensures that organisations can innovate without compromising security.

Prashant Chiranjive Jain, Managing Director of L&T Vyoma, emphasised that the partnership is a significant step for India’s digital economy. He noted that it enables organisations to harness AI with confidence, ensuring that data remains protected within national boundaries while adhering to high standards of compliance and security. His remarks underline the importance of sovereign AI infrastructure in supporting India’s digital transformation.

Anand Kashyap, Co-founder and CEO of Fortanix Inc, highlighted that the collaboration balances innovation with sovereignty. He explained that by combining trusted infrastructure with confidential computing, enterprises in India can adopt AI without exposing sensitive data or intellectual property. His statement reflects the growing importance of secure AI adoption in regulated industries.

Justin Boitano, Vice President of Enterprise AI Products at NVIDIA, added that the integration of NVIDIA Confidential Computing with L&T Vyoma’s infrastructure and Fortanix’s security platform creates a trusted foundation for deploying mission-critical workloads in India. His comments underscore the role of advanced computing technologies in enabling secure digital transformation.

Looking ahead, L&T Vyoma and Fortanix plan to jointly develop sovereign AI and data security solutions. They will pursue co-selling initiatives across regulated industries and drive customer enablement through proof-of-concept and proof-of-value engagements. L&T Vyoma will also facilitate engagement with leading Indian AI model builders to strengthen the ecosystem for sovereign AI innovation. This collaborative approach is expected to accelerate the adoption of secure AI solutions across India’s critical sectors.

The partnership represents a significant milestone in India’s journey towards building a sovereign AI ecosystem. It combines infrastructure, security and advanced computing to create a trusted environment for enterprises and government organisations. By addressing the challenges of data sovereignty and compliance, the collaboration positions India to lead in secure AI innovation while safeguarding sensitive information.

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L&T Vyoma Unveils AI-First Sovereign Cloud To Safeguard India's Data Autonomy

Larsen & Toubro Vyoma (Vyoma), the innovative sovereign AI cloud and digital infrastructure platform developed by L&T, has unveiled its Sovereign Cloud Platform (SCP).

This AI-first cloud infrastructure targets the escalating needs of enterprises and public-sector entities for data sovereignty, regulatory adherence, and secure AI integration. Announced on Monday, the platform marks a significant stride in bolstering India's digital autonomy.

Vyoma's SCP leverages expertise in hyperscale cloud engineering, GPU computing, and advanced AI workloads. Codincity Digital Technologies has been appointed as the exclusive strategic partner to facilitate customer workload migration, modernisation, and the acceleration of AI-native applications built on Vyoma’s comprehensive AI and data stack. This partnership aims to streamline transitions for organisations embracing cutting-edge technologies.

As businesses ramp up AI deployments, pressing concerns have emerged. These include vulnerability to foreign jurisdictions, diminished control over sensitive data and AI models, opaque control planes, vendor lock-in risks, and escalating infrastructure expenses. Such issues are driving a pivotal shift towards authentically sovereign cloud solutions that prioritise national interests.

Vyoma’s SCP counters these challenges with a jurisdiction-first architecture. It guarantees that all data, workloads, and AI systems remain under Indian governance and within approved sovereign boundaries. Critically, the platform operates without dependence on foreign hyperscalers, thereby shielding users from external regulatory overreach.

Engineered specifically for AI from the outset, SCP excels in handling modern, compute-intensive, and data-sensitive tasks. It supports large language models, agentic AI systems, high-performance training and inference, as well as mission-critical applications in government and enterprise settings. This native design sets it apart from conventional clouds retrofitted for AI purposes.

The platform delivers consistent performance for GPU-heavy, latency-sensitive workloads. It offers transparent pricing models and enterprise-grade reliability, addressing common pain points in AI infrastructure. Organisations can thus scale operations confidently without unpredictable costs or downtime.

Sovereignty permeates every layer of SCP’s full cloud stack. This encompasses the infrastructure and control plane, data storage and processing, identity and access management, audit mechanisms, and AI model governance. No element exposes users to extraterritorial laws, unilateral access threats, or reliance on non-transparent third-party controls.

For highly sensitive or regulated applications, SCP enables fully air-gapped deployments. These setups ensure total physical and logical isolation, with no external network dependencies. Administrative access is strictly controlled and auditable, aligning with rigorous compliance standards across sectors.

Such features render SCP particularly apt for government, defence, banking, financial services and insurance (BFSI), telecommunications, healthcare, and other vital industries. In these domains, absolute control and isolation are non-negotiable imperatives for operational integrity and national security.

To encourage swift uptake, Vyoma has launched a one-month free trial program. Targeted at eligible enterprises and institutions, it allows hands-on evaluation of SCP’s performance, compliance capabilities, and seamless integration. This initiative lowers barriers to adoption, enabling production-ready transitions.

Prashant Jain, Head – Corporate Centre at L&T, underscored the strategic importance of the launch. He stated: “L&T always prioritises an ‘India First’ approach across all its businesses. Our Sovereign Cloud infrastructure forms the backbone of India’s most critical digital missions. As we usher in this new chapter, we are delivering intelligent, resilient and AI-cloud-ready data centres that will help turn the vision of a truly digital Aatmanirbhar Bharat into reality.”

This development aligns seamlessly with India's broader push for self-reliance in technology. By fortifying data security and AI capabilities indigenously, Vyoma positions L&T as a frontrunner in the sovereign cloud arena. It empowers sectors reliant on sensitive data to innovate without compromising sovereignty.

Agencies

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