New Delhi: Raghu Vamsi Machine Tools Pvt Ltd, a Hyderabad-based aerospace and defence manufacturer, has signed a memorandum of understanding with the Andhra Pradesh Economic Development Board (APEDB) to establish a large-scale manufacturing complex in the state.
The signing took place on Friday in the presence of the defence minister, Rajnath Singh, and the chief minister of Andhra Pradesh, N Chandrababu Naidu.
The proposed facility, to be spread over 100 acres, will involve an investment of ₹500 crore and is expected to generate approximately 1,000 direct jobs and 2,000 indirect ones through ancillary industries, logistics and supply-chain networks. The company has not specified the location within Andhra Pradesh, but the APEDB will coordinate site identification and other regulatory facilitation.
The facility is planned to house manufacturing lines for micro turbojet engines and unmanned aerial vehicles (UAVs), along with a dedicated testing, evaluation and flight validation range for UAV platforms.
The company says the ecosystem will also support precision machining, composite materials, avionics, defence electronics and systems integration-- capabilities that align with the government’s push to reduce India’s heavy reliance on imported defence equipment.
India’s defence budget for 2025–26 set aside 75 per cent of the capital procurement outlay for domestic industry, a record allocation under the government’s indigenization drive.
UAV manufacturing, in particular, has become a crowded but fast-growing segment, with dozens of Indian startups and established firms vying for contracts from the armed forces and paramilitary organizations.
Andhra Pradesh has been actively positioning itself as a rival to Telangana and Karnataka in attracting high-technology manufacturing, offering competitive land and power incentives.
“Andhra Pradesh offers strong industrial potential, progressive policy support, and a strategic ecosystem for advanced manufacturing,” said Vamsi Vikas Ganesula, managing director of Raghu Vamsi Machine Tools, adding that the investment was aimed at contributing to India’s ambition of becoming a global hub for defence and aerospace production.
Raghu Vamsi Group, founded in 2002, operates 10 manufacturing facilities across India, the United States and the United Kingdom, employing over 1,000 people. The group’s annual turnover stands at over Rs 500 crore.
The Andhra Pradesh deal comes alongside a separate expansion in neighbouring Telangana, where the group is building a Rs 300-crore manufacturing facility at the state’s Hardware Park near Hyderabad international airport.
