Project Expected to Generate 3,000 Employment Opportunities and Strengthen India’s Defence Manufacturing Ecosystem
In a significant boost to India’s aerospace and defence manufacturing ambitions, Raghu Vamsi Machine Tools Pvt. Ltd. has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to establish a large-scale Aerospace & Defence manufacturing facility in the state. The proposed project, involving an investment of ₹500 crore, is expected to create nearly 1,000 direct jobs and an additional 2,000 indirect employment opportunities, further strengthening Andhra Pradesh’s position as an emerging hub for advanced manufacturing.
The MoU was signed in the presence of Hon’ble Defence Minister Shri Rajnath Singh and Andhra Pradesh Chief Minister Shri N. Chandrababu Naidu, highlighting the strategic importance of the project in supporting India’s defence indigenisation and “Make in India” initiatives.
Spread across 100 acres, the proposed facility will focus on precision manufacturing for aerospace and defence applications. The project includes the establishment of advanced manufacturing capabilities for micro turbojet engines, Unmanned Aerial Vehicles (UAVs), UAV integration systems, and a dedicated testing, evaluation, and flight validation range. These facilities are expected to play a crucial role in developing indigenous technologies for propulsion systems, autonomous defence platforms, and next-generation aerospace systems.
The new manufacturing ecosystem is also expected to stimulate the growth of a strong domestic supplier network spanning precision machining, composites manufacturing, avionics, defence electronics, and advanced systems integration. By creating a robust industrial base, the project aims to support India’s long-term goals of self-reliance in critical aerospace and defence technologies while fostering innovation and high-skilled employment.
Speaking on the occasion, Mr. Vamsi Vikas Ganesula, Managing Director of Raghu Vamsi Machine Tools Pvt. Ltd., described the agreement as a major milestone in the company’s growth journey. “This MoU marks a defining milestone as we expand our capabilities in aerospace and defence 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 defence and aerospace production while creating large-scale employment and strengthening local industrial ecosystems,” he said.
As part of the agreement, APEDB will facilitate project development through investment support, coordination, and industrial promotion initiatives. The collaboration reflects Andhra Pradesh’s growing ambition to attract high-technology industries and establish itself as a preferred destination for aerospace, defence, and precision engineering investments.
Raghu Vamsi Aerospace Group has built a strong reputation in the global aerospace and defence sector over the past two decades. With operations spanning 10 manufacturing locations across India, the United States, and the United Kingdom, and employing over 1,000 professionals, the group supplies high-precision engineering components and assemblies to leading global OEMs including Boeing, GE Aviation, Honeywell, Rolls-Royce, Collins Aerospace, and Safran. It also serves key Indian defence and space organizations such as DRDO, HAL, ISRO, BDL, and ADA.
The Andhra Pradesh project follows the company’s ongoing expansion plans, including a ₹300 crore aerospace manufacturing facility under development at Telangana’s Hardware Park near Hyderabad. Together, these investments underscore Raghu Vamsi Group’s commitment to advancing India’s aerospace and defence manufacturing capabilities and supporting the nation’s emergence as a globally competitive engineering powerhouse.