JSW Defence, Shield AI Launch $90M Military Drone Project

• JSW Defence partners with US-based Shield AI to build a military drone manufacturing facility in Hyderabad
• Facility will produce Group 3 Unmanned Aerial Systems (VBAT) under a long-term technology licensing and transfer agreement
• Construction has begun at EMC Maheshwaram, with production expected by Q4 2026; foundation laid by Parth Jindal and Telangana officials

JSW Defence has announced its $90M Defence Drone Manufacturing Facility based in Hyderabad, India in partnership with the American Defence Technology Company, Shield AI.

The facility will produce military Group 3 UAVs called VBATs under their Long Term Licensing Agreement (LTLA). Under the LTLA, Shield AI is providing JSW with the technology needed to build their own version of VBATs.

Both the companies launch a $90 million Hyderabad drone project in India to advance military drones India, unmanned aerial vehicles, and cutting-edge defense technology.

As part of the agreement, the JSW Group will invest $90 million (INR 900 crore) to develop a global compliance program, build a manufacturing facility, and train staff on the use of the technology which has been transferred from Shield AI to JSW.

The company stated, “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”.

Construction on the JSW Defence Facility has already started and is located at EMC Maheshwaram, Hyderabad. JSW anticipates that the first VBATs will be produced by late Q4 2026.

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The foundation stone was laid by Parth Jindal (JSW Group), Duddilla Sridhar Babu (Telangana Minister of IT, E&C, and Industry & Commerce), senior Telangana government officials, representatives of Shield AI, and members of Indian Armed Services.

“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”, he added.

According to Sarjan Shah (MD at Shield AI in India), this cutting-edge facility represents a significant milestone in achieving the collaborative vision between JSW and Shield AI to enhance Indo-US Defence Cooperation based on mutual trust, transparency and shared strategic goals.

“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 added.

In addition, it builds on prior initiatives by both organisations to investigate the potential of the rapidly expanding Defence Sector in India.