Andhra Pradesh Government has allocated 1,000 acres of land to Kalyani Strategic Systems Ltd, a subsidiary of Bharat Forge Ltd, to set up a defence manufacturing facility in Murranahalli village, Madakasira . This move is expected to give a significant boost to the defence manufacturing sector in the region.
The proposed facility will include an ammunition filling complex and a gun propellant unit. Kalyani Strategic Systems plans to invest around ₹2,400 crore in two phases to develop this facility. The company aims to broaden the facility’s capabilities to include missiles, warheads, and energetics, which will significantly enhance the defence manufacturing capabilities in the region .
Bharat Forge has been expanding its presence in the defence sector, and this new facility is a significant step in that direction. The company has already received orders worth ₹280 crore in the last quarter from multiple customers and product segments. With this new facility, Bharat Forge is expected to increase its revenue from the defence sector, which is expected to account for around 10% of the company’s total revenue by the end of this year .
The Andhra Pradesh Government’s decision to allocate land to Kalyani Strategic Systems is part of its efforts to promote the defence manufacturing sector in the state. The government has been actively promoting the state as an attractive destination for defence manufacturing, and this move is expected to attract more investments in the sector.
In addition to the defence manufacturing facility, Bharat Forge is also investing in other areas, including electric vehicle components and systems. The company has set aside ₹1,000 crore for capital expenditure over the next 2.5 years, which will be used to fund its expansion plans in various areas .
