Kalyani Strategic Systems arm Agneyastra begins work on ₹1,500 crore defence manufacturing facility in Andhra Pradesh

Leaders during the groundbreaking ceremony of Agneyastra Energetics’ defence manufacturing facility in Andhra Pradesh.
Groundbreaking ceremony of Agneyastra Energetics’ ₹1,500 crore defence manufacturing facility in Andhra Pradesh. ( Image Source : X )

Agneyastra Energetics Limited, a wholly owned subsidiary of Kalyani Strategic Systems Limited, has broken ground on a new strategic defence manufacturing facility near Madakasira in Sri Sathya Sai district of Andhra Pradesh.

Kalyani Strategic Systems Limited is the defence business of Bharat Forge Limited.

The company said the project will strengthen India’s indigenous manufacturing capabilities in advanced energetics and ammunition systems.

The integrated manufacturing campus will be spread across more than 1,000 acres and will be developed with a planned investment of ₹1,500 crore over the next 2–4 years.

According to the company, the facility will include advanced manufacturing technologies, high-safety testing infrastructure and specialised logistics capabilities.

It is aimed at supporting modern defence and aerospace applications.

The project is expected to generate around 800 direct jobs and nearly 2,500 indirect employment opportunities. The company said the investment will also support regional economic growth and reinforce Andhra Pradesh’s position as a growing aerospace and defence manufacturing hub.

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Agneyastra Energetics has been set up to reduce India’s reliance on imported energetics materials. The company will focus on indigenously designed, manufactured and globally compliant solutions for strategically important materials.

The initiative is aligned with the Government of India’s Aatmanirbhar Bharat vision, with a focus on import substitution, local value creation and technological self-reliance in critical defence materials.

Baba Kalyani, Chairman and Managing Director of Bharat Forge Limited, said India has a significant opportunity to emerge as a globally trusted source for advanced defence systems and critical materials.

“Agneyastra Energetics is a strategic step towards building a strong indigenous energetics ecosystem and globally competitive capabilities from India for both domestic and international markets,” he said.

The company said Agneyastra Energetics will draw on the Kalyani Group’s experience in strategic defence manufacturing, metallurgy and systems integration. It added that the new facility will embed safety, engineering discipline and industrial governance from the beginning.

Agneyastra Energetics Limited manufactures specialised ammunition, propellants and high-energy materials. Its product focus includes advanced ammunition, propellants, rockets and pyrotechnic systems for defence, aerospace and space applications.

Kalyani Strategic Systems Limited is a wholly owned subsidiary of Bharat Forge Limited and functions as the group’s flagship company for defence business initiatives.

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