Davos [Switzerland], January 21: At the World Economic Forum, SARGAD LLC and the Government of Telangana signed a Memorandum of Understanding (MoU) to establish AeroNxt, a collaborative initiative to modernize India’s aerospace and defence manufacturing ecosystem.
The MoU was signed at the India Pavilion during the WEF Annual Meeting 2026, with SARGAD targeting the deployment of up to $100 million USD (approx. ₹1000 Crore) in the state’s aerospace & defence sector over the next several years.
The initiative addresses a critical supply chain gap as global air travel continues to expand and demand for new aircraft and their sustainment accelerates. Original Equipment Manufacturers (OEMs) are seeking reliable, cost-competitive manufacturing partners to meet this growing demand while managing supply chain uncertainty.
Supported by a group of senior global executives bringing decades of leadership experience and relationships across global aerospace and defence programs, the initiative targets four strategic objectives:
- Investing in and modernizing MSMEs.
- Developing capabilities to deliver high-precision components, sub-systems, and structures for next-generation aircraft and defence programs.
- Facilitating access to global OEMs and the tiered supply base.
- Establishing an MRO Centre 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. This partnership with the Government of Telangana is about selectively investing in MSMEs, building capabilities in high-precision mechanical and electronic components and software, and supporting the needs of aircraft manufacturers and Tier 1 suppliers globally,” said Sri Thota, Founder & CEO of SARGAD.
SARGAD is an operator-led industrial and investment platform with experience across aerospace, defence, 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.
The initiative capitalizes on Telangana’s 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 strategically positioned for modernization into globally competitive aerospace suppliers.
The partnership aims to support incremental export growth, job creation, skill development, and MSME modernization over a multi-year period. The initiative seeks to contribute to Atmanirbhar Bharat objectives and build private sector participation in aerospace and defence capabilities.
About SARGAD
SARGAD LLC delivers strategic Private Equity partnerships and Innovation Solutions across the private and public sectors. Headquartered in Troy, Michigan, SARGAD partners with organizations to build, modernize, and scale businesses by combining Fortune 200-level leadership, deep operational expertise, and disciplined capital deployment to drive sustainable growth and global competitiveness across the aerospace, defence, automotive, data centres, clean energy, and healthcare sectors.
Media Contact:
SARGAD LLC
755 W Big Beaver Rd, Suite 2020
Troy, MI 48084
248-302-0666
info@sargad.com
www.sargad.com