Agneyastra's ₹1,500 Cr Defence Gambit in Madakasira

Agneyastra Energetics, a wholly owned subsidiary of Kalyani Strategic Systems, has commenced development of a large-scale defence manufacturing facility in Madakasira.

The project, spread across 1,000 acres, involves a planned investment of ₹1,500 crore over the next two to four years and is aimed at strengthening India’s indigenous energetics and ammunition manufacturing capabilities.

The integrated manufacturing campus will feature advanced production technologies, specialised testing infrastructure, and logistics systems designed for defence and aerospace applications. The facility will support the production of advanced energetics, ammunition systems, propellants, rockets, and pyrotechnic solutions for strategic defence programmes.

The project is expected to generate around 800 direct jobs and nearly 2,500 indirect employment opportunities, further supporting Andhra Pradesh’s emergence as a major aerospace and defence manufacturing hub. Agneyastra Energetics also plans to implement safety-focused engineering systems and industrial governance practices by leveraging the expertise of the Kalyani Group in metallurgy and defence systems integration.

Kalyani Strategic Systems is the defence business arm of Bharat Forge. Commenting on the development, Baba Kalyani said India has a significant opportunity to emerge as a globally trusted source for advanced defence systems and critical materials, adding that the Agneyastra project represents a strategic step towards building a globally competitive indigenous energetics ecosystem for both domestic and international markets.

News by Rahul Yelligetti.