JSW Group enters defence manufacturing

New Delhi: The JSW Group on Thursday announced its entry into defence manufacturing space by acquiring a controlling stake in Gecko Motors Pvt Ltd, an off-road vehicle company. 

JSW Defence and Aerospace (JSW Defence), part of the JSW Group, has acquired a 51% stake in Gecko Motors, now rebranded as JSW Gecko Motors Pvt Ltd, the company said in a statement.

Led by founder Jaskirat Singh Nagra, JSW Gecko Motors has already clinched a 250 crore defence ministry contract to produce 96 Specialist Mobility Vehicles (SMVs), branded as ATOR N1200. These vehicles are currently being manufactured in Chandigarh, with delivery commitments for June 2024.

JSW Gecko will be operating as a subsidiary of JSW Defence.

“…As part of our strategic focus, we are actively pursuing partnerships with global players & Indian startups to introduce the latest military technology across multiple defence equipment segments. Our endeavour shall be to bring in niche technologies to fill in the capability gaps of Indian armed forces and partner with our soldiers in the line of combat,” said Parth Jindal of the JSW Group.

Jindal also pointed out the vast potential in defence for Indian companies, noting the country’s $73.8 billion defence budget, expected to rise to $200 billion by 2030. “…we at JSW see a big opportunity.”

According to a projection by credit rating agency Icra Ltd, private sector firms in India could secure defence contracts worth 60,000 crore in FY25, representing 22% of the industry’s overall size.

Defence secretary Giridhar Aramane had recently said that defence production in India will reach 1.5 trillion to 1.75 trillion in FY24, with 45% of new orders going to the private sector.

JSW Defence has appointed retired army personnel to key positions to lead the business. 

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Published: 25 Jan 2024, 07:01 PM IST

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