JSW Defence kick-starts $ 90-million project for military drone manufacturing with US partner Sheild AI

Under the agreement, the JSW Group will invest around USD 90 million to set up JSW's global compliance programme, a manufacturing facility to ensure technology licensing, and training of manpower.

JSW Defence on Tuesday said it has kick-started a USD 90-million project with the construction of a military drone facility in Hyderabad in partnership with US-based Shield AI.

JSW has entered into a strategic partnership with Shield AI to manufacture their Group 3 Unmanned Aerial Systems – VBAT, under a long-term licensing arrangement for transfer of technology, the company said in a statement.

Under the agreement, the JSW Group will invest around USD 90 million to set up JSW’s global compliance programme, a manufacturing facility to ensure technology licensing, and training of manpower. ”This investment will enable JSW to establish a local supply chain and create an advanced facility in India for manufacturing, assembling and testing V-BAT.

This effort will enable large-scale production of V-BATs in India to serve the needs of the Indian armed forces and also function as a global production hub,” the company said. JSW Defence Pvt Ltd today commenced the construction of its facility at EMC Maheshwaram, Hyderabad.  The manufacturing of VBATs at the facility is expected to begin by the last quarter of 2026, it said. The foundation stone-laying ceremony of the plant was performed by Parth Jindal of the JSW Group, in the presence of Duddilla Sridhar Babu, Minister for IT, E&C and Industries & Commerce, Telangana, senior officials from the state government, Shield AI and the Indian armed forces.

"Today’s milestone signals a bold new chapter in India’s journey toward self-reliance in next-generation defence technologies. Our collaboration with Shield AI reflects our shared ambition to bring mission-critical, globally benchmarked capabilities to India and to build an ecosystem that will define the future of unmanned systems for the nation,” Jindal said. According to Sarjan Shah, Shield AI’s Managing Director for India, the upcoming world-class facility sets in motion the joint vision of the JSW Group and Shield AI to deepen Indo–US defence collaboration built on trust, transparency and shared strategic priorities. ”JSW’s scale, industrial expertise and commitment to building strategic technologies in India make them an ideal partner for us as we work to expand the global footprint of the V-BAT,” Shah said.

Earlier, JSW Group and Shield AI had partnered to tap opportunities in India’s defence industry