Raghu Vamsi Machine Tools on Friday signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB), Government of Andhra Pradesh, to establish a large-scale Aerospace & Defence (A&D) manufacturing facility in the state.

Under the proposed project, Raghu Vamsi Machine Tools plans to establish an advanced manufacturing facility spanning 100 acres, focused on precision manufacturing for the aerospace and defence sectors. The proposed investment for the project is ₹500 crores.

The project is expected to create nearly 1,000 direct employment opportunities and an additional 2,000 indirect jobs through ancillary industries, logistics, services, and supply chain networks.

The project will focus on establishing advanced facilities for micro turbojet engine manufacturing, UAV manufacturing and integration, as well as a dedicated UAV testing, evaluation, and flight validation range. The proposed ecosystem is aimed at strengthening indigenous capabilities in propulsion systems, autonomous defence technologies, tactical unmanned platforms, and export-oriented aerospace manufacturing, while also enabling the development of next-generation defence systems.

“The MoU marks a defining milestone in our growth journey as we expand our capabilities in aerospace and defence manufacturing. 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,” Vamsi Vikas Ganesula, Managing Director, Raghu Vamsi Machine Tools said in a release.

As part of the understanding, APEDB will provide the necessary support and coordination for the project, including assistance in facilitating investment discussions and promoting industrial development in the state.

Published on May 15, 2026