Troy-based SARGAD and the government of Telangana, a state in India, have signed a memorandum of understanding to create AeroNxt, a program to modernize India’s aerospace and defense manufacturing ecosystem.
The announcement was made at the World Economic Forum in Davos, Switzerland.
The goal of the endeavor is the deployment of $100 million in the state’s aerospace and defense sector over the next several years.
AeroNxt is designed to address a critical supply chain gap as global air travel continues to expand and demand for new aircraft and their sustainment accelerates. Original equipment manufacturers are seeking reliable, cost-competitive manufacturing partners to meet this growing demand while managing supply chain uncertainty.
The initiative targets four strategic objectives — investing in and modernizing India’s micro, small, and medium enterprises; developing capabilities to deliver high precision components, sub-systems, and structures for next-generation aircraft and defense programs; facilitating access to global OEM’s and tiered supply base; and establishing an MRO Center of Excellence for aerospace components.
“Global aerospace supply chains are shifting toward trusted, cost-competitive suppliers with quality manufacturing and design capabilities, with the ability to supply reliably at scale. India has the engineering talent and the strategic positioning,” says Sri Thota, founder and CEO of SARGAD.
“This partnership with the government of Telangana is about selectively investing in MSMEs, building capabilities in high-precision mechanical and electronics components and software, and supporting the needs of aircraft manufacturers and Tier 1 suppliers globally.”
SARGAD is an operator-led industrial and investment platform with experience across aerospace, defense, automotive, clean energy, and data center manufacturing sectors, focused on IP-driven industrial businesses. The initiative is expected to be pursued through SARGAD’s Industrial Investment Platform.
AeroNxt plans to capitalize on Telangana’s existing industrial ecosystem, anchored by HAL, DRDO, BDL, Tata ASL, and Cyient, combined with a strong engineering talent pool and progressive government policies. The existing MSME base is positioned for modernization into globally competitive aerospace suppliers, according to officials.
The partnership seeks to support incremental export growth, job creation, skill development, and MSME modernization over a multi-year period.
