Bharat Forge group company Agneyastra Energetics has broken ground on a large-scale defence manufacturing project in Andhra Pradesh, marking one of the biggest recent private-sector investments in India’s indigenous energetics and ammunition ecosystem.

The company, a wholly owned subsidiary of Kalyani Strategic Systems Ltd. (KSSL), plans to invest ₹1,500 crore over the next two to four years to develop an integrated advanced energetics manufacturing campus near Madakasira in Sri Sathya Sai district. Spread across more than 1,000 acres, the facility is expected to strengthen India’s domestic capabilities in ammunition systems, propellants and high-energy defence materials.

Push towards defence indigenisation

The upcoming campus will house advanced manufacturing lines, testing infrastructure and specialised logistics systems aimed at supporting the production of next-generation energetic materials used in defence, aerospace and space applications.

The investment comes at a time when India is intensifying efforts to reduce dependence on imported defence systems and critical materials under the government’s Aatmanirbhar Bharat initiative. Agneyastra Energetics said it was created specifically to address India’s continued reliance on imported energetics materials through locally designed and manufactured solutions that meet global compliance standards.

Industry estimates suggest India’s defence production crossed ₹1.3 lakh crore in FY25, with policymakers increasingly encouraging private-sector participation in strategic manufacturing categories traditionally dominated by imports and public-sector entities.

Andhra Pradesh sharpens aerospace ambitions

The project is expected to generate around 800 direct jobs and nearly 2,500 indirect employment opportunities, providing a significant industrial boost to the region while reinforcing Andhra Pradesh’s push to position itself as a defence and aerospace manufacturing hub.

Baba Kalyani, Chairman and Managing Director of Bharat Forge, said India has a significant opportunity to emerge as a globally trusted source for advanced defence systems and critical materials. He added that Agneyastra Energetics represents a strategic step towards building a globally competitive indigenous energetics ecosystem capable of serving both domestic and international markets.

Backed by the Kalyani Group’s long-standing expertise in metallurgy, engineering and strategic systems manufacturing, the facility will focus on advanced ammunition, rockets, propellants and pyrotechnic systems designed for modern defence applications