
Raghu Vamsi Machine Tools has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB), Government of Andhra Pradesh, to establish a large-scale Aerospace & Defense (A&D) manufacturing facility in the state.
The MoU, signed in the presence of the Hon'ble Raksha Mantri Shri Rajnath Singh Ji and Hon’ble Chief Minister of Andhra Pradesh Shri N. Chandrababu Naidu, marks a significant step toward strengthening India’s indigenous aerospace and defense manufacturing ecosystem while accelerating industrial growth in the state.
Under the proposed project, Raghu Vamsi Machine Tools plans to establish an advanced manufacturing facility spanning 100 acres, focused on precision manufacturing for the aerospace and defense sectors. The proposed investment for the project is Rs 500 Crores. The project is expected to create nearly 1,000 direct employment opportunities and an additional 2,000 indirect jobs through ancillary industries, logistics, services, and supply chain networks.
The project will focus on establishing advanced facilities for micro turbojet engine manufacturing, UAV manufacturing and integration, as well as a dedicated UAV testing, evaluation, and flight validation range. The proposed ecosystem is aimed at strengthening indigenous capabilities in propulsion systems, autonomous defense technologies, tactical unmanned platforms, and export-oriented aerospace manufacturing, while also enabling the development of a robust domestic vendor ecosystem spanning precision machining, composites, avionics, defense electronics, and advanced systems integration.
Through the project, Raghu Vamsi Machine Tools intends to support India’s long-term defense indigenisation and aerospace manufacturing ambitions while creating a high-skilled employment and innovation-driven industrial base in Andhra Pradesh.
Also Read: Defense & Aerospace Indigenization: Shift to Domestic Manufacturers
The collaboration reflects Andhra Pradesh’s growing ambition to emerge as a key manufacturing and investment destination for high-technology sectors, particularly aerospace, defense, and precision engineering.
Speaking on the development, Vamsi Vikas Ganesula, Managing Director, Raghu Vamsi Machine Tools, said, “This MoU marks a defining milestone in our growth journey as we expand our capabilities in aerospace and defense manufacturing. Andhra Pradesh offers strong industrial potential, progressive policy support, and a strategic ecosystem for advanced manufacturing. Through this investment, we aim to contribute meaningfully to India’s vision of becoming a global hub for defense and aerospace production while creating large-scale employment and strengthening local industrial ecosystems.”
As part of the understanding, APEDB will provide the necessary support and coordination for the project, including assistance in facilitating investment discussions and promoting industrial development in the state.
The proposed facility is expected to enhance domestic manufacturing capabilities in critical aerospace and defense components and further contribute to the Government of India’s “Make in India” and defense indigenization initiatives.
Raghu Vamsi Group has carved out a niche for itself in the aerospace and defense industry worldwide over the past two decades, since its inception in 2002. The company and its subsidiaries, with 10 manufacturing locations across India, the USA, and the UK, employing over 1,000 personnel, have gained the trust and built lasting relationships over the years by delivering high-precision engineering components and sub-assemblies to some of the largest global corporations.
The Group’s competencies include design, engineering, CNC machining, sheet metal fabrication, composites manufacturing, electronics and electromechanical sub-assemblies, welding, surface coatings, and full system integration. The company exports and supplies to various global OEMs like Boeing, GE Aviation, Honeywell, Rolls-Royce, Collins Aerospace, Safran, Halliburton, and many more. The company is also a Tier 1 supplier for developing subsystems for missiles and aircraft for Indian defense establishments such as DRDO, BDL, HAL, ISRO, ADA, and many more.
Raghu Vamsi Group is setting up a manufacturing facility with INR 300 crore at the Telangana government’s Hardware Park near the Hyderabad international airport. This facility will primarily consist of three buildings totalling 2.5 lakh square feet on eight acres. It is expected to inaugurate the new facility by November 2026. This facility will generate employment for over 2,000 people over the next three years.
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