Raghu Vamsi Machine Tools Pvt Ltd has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB), Government of Andhra Pradesh, to set up a large-scale Aerospace & Defence (A&D) manufacturing facility. The MoU, signed in the presence of Defence Minister Rajnath Singh and Andhra Pradesh Chief Minister N Chandrababu Naidu, advances India’s indigenous aerospace and defence capabilities while accelerating industrial growth in the state.

The proposed project spans 100 acres, with an investment of Rs 5 billion, and is expected to generate nearly 1,000 direct jobs and 2,000 indirect positions through ancillary industries, logistics, and supply chains. It will focus on micro turbojet engine manufacturing, UAV production and integration, and a dedicated UAV testing and flight validation range. The initiative aims to strengthen domestic capabilities in propulsion systems, autonomous defence technologies, tactical unmanned platforms, and export-oriented aerospace manufacturing, alongside developing a robust local vendor ecosystem in precision machining, composites, avionics, defence electronics, and systems integration.

Vamsi Vikas Ganesula, Managing Director, Raghu Vamsi Machine Tools Pvt Ltd, said, “This MoU marks a defining milestone in our growth journey. 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.”

APEDB will provide support and coordination for investment discussions and industrial development. The facility is expected to enhance domestic manufacturing of critical aerospace and defence components and contribute to the Government of India’s “Make in India” and defence indigenisation initiatives.