Agneyastra Energetics Acquires 950 Acres in Andhra Pradesh for Defence Manufacturing Hub!
By Ashutosh Arora
Bharat Forge Ltd has announced a major expansion of its defence and aerospace footprint through its step-down subsidiary, Agneyastra Energetics Limited, which has secured nearly 950 acres of land in Andhra Pradesh. The land, located in Madakasira in the Anantapur district, has been acquired from the Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) and will be developed into a state-of-the-art defence manufacturing complex.
The proposed facility is designed to become one of India’s most comprehensive hubs for energetic materials and ammunition. In its initial phase, the site will focus on the production of high explosives, ammunition filling, and gun propellant manufacturing. Subsequent development phases are expected to add advanced capabilities, including facilities for rocket and missile energetics, components for space launch vehicles, and next-generation energetic materials. The phased approach will allow Agneyastra Energetics to build capacity while aligning with India’s defence modernization plans and growing emphasis on self-reliance in critical defence technologies.
Agneyastra Energetics was established under Kalyani Strategic Systems Ltd (KSSL), itself a wholly owned subsidiary of Bharat Forge. The creation of the company and this large-scale land acquisition mark a strategic milestone for the Kalyani Group as it expands deeper into defence and aerospace manufacturing. With India focusing on strengthening its indigenous defence ecosystem through initiatives such as “Atmanirbhar Bharat” and the Defence Production and Export Promotion Policy, Bharat Forge and its subsidiaries are positioning themselves to play a central role in meeting domestic demand and tapping into export opportunities.
The timing of this expansion comes against the backdrop of a mixed financial performance for Bharat Forge. In the first quarter of the fiscal year, the company reported a 10% year-on-year decline in standalone revenue, which fell to ₹2,105 crore compared to ₹2,173 crore in the same quarter last year. The decline was primarily attributed to weaker export performance, underscoring the challenges faced in global markets. At the operating level, the company posted an EBITDA of ₹571 crore, down 12.4% year-on-year and below market expectations of ₹616 crore. The EBITDA margin narrowed to 27.1% from 27.9% in the year-ago period, also trailing the consensus estimate of 28%.
Despite these short-term headwinds, Bharat Forge’s long-term strategy remains focused on diversification and scaling up in high-value sectors such as defence and aerospace. The investment in Agneyastra Energetics reflects a broader vision of reducing dependence on imports for critical defence technologies while building India’s capability to supply advanced systems to global markets.
Commenting on the development, industry observers note that the Madakasira project could evolve into a landmark facility, not only strengthening India’s national security infrastructure but also creating a robust ecosystem for innovation in energetics and propulsion technologies. Once fully operational, the facility is expected to generate significant employment opportunities in the region and support ancillary industries, reinforcing Andhra Pradesh’s position as an emerging hub for advanced manufacturing.
Headquartered in Pune, Bharat Forge Limited (BFL) is one of India’s most prominent multinational companies, with a strong presence across automotive, power, oil and gas, construction, mining, railways, marine, defence, and aerospace sectors. Known for its technology-led manufacturing of high-performance, safety-critical components, BFL continues to invest in innovation and global expansion. Through Agneyastra Energetics, the company is deepening its commitment to India’s strategic sectors and contributing to the nation’s journey toward defence self-reliance.
