New Delhi: Hyderabad-based aerospace leader Ananth Technologies Private Limited has announced a major ₹1,000 crore investment to establish a state-of-the-art defence manufacturing facility in Dutthaluru, located in Andhra Pradesh’s Nellore district. Dedicated to producing missiles and kamikaze drones, this landmark project significantly boosts India’s self-reliance in advanced defence hardware.
Expanding India’s Defense Ecosystem
The state government of Andhra Pradesh has already identified 300 acres of land to house the high-tech complex. This facility will be a comprehensive hub equipped to handle the manufacturing, assembly, integration, and testing of complex missile systems and loitering munitions – commonly referred to as kamikaze or suicide drones.
The project will serve as an anchor industry for a projected energetics and defence manufacturing cluster in the state, strengthening the supply chain for rockets, missiles, and space launches. According to company projections, the facility is expected to generate direct employment for approximately 750 skilled professionals upon completion.
Phased Investment and Project Timeline
To ensure systematic development, Ananth Technologies plans to execute the project in two distinct phases:
- Phase 1: Backed by an initial investment of ₹300 crore, the first phase focuses on establishing core operations and will create job opportunities for 200 people. The company has set a timeline to complete this phase within 24 months of securing necessary approvals and finalising land acquisition.
- Phase 2: The second phase will scale up operations via a larger injection of ₹700 crore, generating an additional 550 jobs. This phase is slated for completion within 48 months of the initial approval window.
To ensure smooth operations at the Dutthaluru site, the company has formally requested the state government to allocate 75 kiloliters of water daily from the nearby Gandipalem Reservoir. Additionally, they have requested the construction of a dedicated approach road linking National Highway 565 directly to the project location.
Production Capacity and Advanced Refurbishment
Beyond building new systems, the proposed facility introduces critical maintenance capabilities for India’s defence stockpiles. Ananth Technologies intends to restore aging or expired missiles to full operational status through a specialised “missile refurbishment” programme. This involves replacing degraded parts and upgrading older hardware with cutting-edge electronics. The company aims to refurbish 150 missiles annually in the first phase, scaling up to 550 missiles per year in the second phase.
Furthermore, the site is designed for mass production of loitering munitions, aiming for a combined annual output of up to 4,000 suicide drones across both development phases. Under the “New Missile Integration” segment of Phase 2, the facility will also possess the capability to assemble up to 1,100 brand-new missile units every year.
Loitering munitions represent a major technological revolution in modern asymmetric warfare. Combining the characteristics of a missile and an unmanned aerial vehicle (UAV), these drones can loiter over a battlefield, identify a target via onboard sensors, and execute a precision strike by crashing directly into the target with an integrated explosive payload.
A Strategic Move for Indigenous Defence
Founded in 1992 by Dr Subba Rao Pavuluri, a former ISRO scientist, Ananth Technologies has spent more than three decades supporting India’s premier space and defence programmes. The company has contributed critical electronics and mechanical subsystems to over 100 satellite missions and numerous launch vehicles.
By scaling its capabilities into high-energy materials and advanced loitering munitions, this massive investment in Andhra Pradesh directly aligns with India’s “Make in India” defence goals, helping secure local defence supply chains against volatile international markets.
