JSW Teams With Shield AI to Produce Advanced VBAT Drones in Hyderabad

JSW has taken a major step into advanced defence manufacturing with a new strategic partnership with Shield AI to produce the VBAT Group 3 Unmanned Aerial System in India.

Announced today, the long-term licensing deal brings full technology transfer to the country, marking a strong push toward local defense capability and global-scale production.

As part of the agreement, the JSW Group will invest USD 90 million to build a global compliance programme, a dedicated manufacturing hub, and a skilled workforce to support the VBAT line.

The company said this investment will help set up a reliable local supply chain and create an advanced manufacturing facility, assembling and testing the VBAT. The goal is to meet the needs of the Indian armed forces while positioning India as a worldwide production base for the drone.

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Construction of the new plant has begun at EMC Maheshwaram in Hyderabad, led by JSW Defense Pvt Ltd. The company expects VBAT manufacturing to start by the last quarter of 2026. The foundation stone was laid by Parth Jindal in the presence of Telangana Industries Minister Duddilla Sridhar Babu, senior state officials, Shield AI executives and representatives from the Indian armed forces.

“Today’s milestone signals a bold new chapter in India’s journey toward self-reliance in next-generation defense 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.

Sarjan Shah, Managing Director for India at Shield AI, said the upcoming world-class facility advances the joint vision to strengthen Indo–US defense ties. ”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,” he said.