New Delhi: The Indian defence sector has a new entrant. With a majority stake acquisition in extreme off-road vehicle company Gecko Motors, JSW Group marked its foray into the defence sector.
Announcing its entry into defence manufacturing space, JSW Group on January 25 said in a statement that the acquisition was done by the company’s new vertical JSW Defence and Aerospace. Following the buy, the company has been named as JSW Gecko Motors. JSW Defence and Aerospace (JSW Defence), part of the JSW Group, has acquired a 51% stake in Gecko Motors. JSW Gecko will be operating as a subsidiary of JSW Defence.
JSW Gecko Motors, led by founder Jaskirat Singh Nagra, has already clinched a Rs 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.
“….As part of our strategic focus, we are actively pursuing partnerships with global players and 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, Director at JSW Group.
“At $73.8 billion, India as a country has an extremely large defence budget. By 2030 the Indian defence budget is likely to grow to $200 billion. Capital outlay forms a very large part of the defence budget and it is here, we at JSW see a big opportunity,” Parth Jindal pointed out.
Recently, Defence secretary Giridhar Aramane had said that defence production in India will reach Rs 1.5 trillion to Rs 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. Commodore (retd) Madhu Gentela, an ex-Naval officer has been appointed by JSW Defence to lead the group’s defence business. The company is also actively pursuing partnerships with global players and Indian start-ups to introduce the latest military technology across multiple defence equipment segments.