In conversation with Editor Ankur Sharma, The News Strike, Ankur Shah, Managing Director of Krishna Defence and Allied Industries Ltd., says the role of private sector defence manufacturers in India is rapidly evolving from component suppliers to strategic innovators, driven by increased investments in in-house R&D, precision engineering, and advanced materials. He notes that policy reforms and government support have enabled greater private sector participation, with companies now contributing significantly to defence production and helping reduce dependence on imports in critical technologies. Shah attributes the company’s strong FY25 growth to robust order execution, capacity expansion, and diversification into high-value segments such as composites and defence electronics.
1. How do you see the role of private sector defence manufacturers evolving in India’s push for self-reliance?
The role of the private sector in defence manufacturing in India’s push for self-reliance is becoming increasingly strategic and innovation-driven. Companies are moving beyond component supply to invest in in-house R&D, precision engineering, and advanced materials to develop mission-critical solutions for naval and land-based platforms.
With increased investments in R&D, precision engineering, and specialised materials, the private sector is helping reduce dependence on imports in critical areas such as advanced defence systems and next-generation technologies. Government reforms and policy support have also enabled greater participation, with private companies now contributing nearly 23% of defence production, reflecting their growing importance in the ecosystem.
2. Krishna Defence has doubled revenue in FY25. What are the biggest growth drivers behind this momentum?
Krishna Defence’s strong revenue growth in FY25 has been driven by a combination of robust order execution, capacity expansion, and strategic diversification. The company benefited significantly from the execution of large defence orders and a strong order inflow, reflecting sustained demand for indigenised defence components.
Another key driver has been investments in advanced manufacturing facilities and setting up new production lines has helped the firm improve its efficiency and take care of multiple high-value orders simultaneously. Besides, the introduction of new defence products, venturing into composite products and defence electronics, and strategic collaborations have also added to its success.
Moreover, the investment made in creating advanced manufacturing facilities and production lines has proved to be crucial for achieving greater efficiency and handling many orders of high value. The creation of new defence products, venturing into composites and defence electronics, and partnering with others have further facilitated its success.
3. How significant is KDAIL’s role today in India’s naval shipbuilding and marine engineering supply chains?
KDAIL plays a significant and evolving role in India’s naval shipbuilding and marine engineering supply chains. The company contributes critical inputs such as marine-grade structural steel, special alloy weld consumables, and fabricated hull components used in frontline naval platforms. Having supplied over 10,000 MT of specialised steel for high-performance defence applications, KDAIL has established itself as a reliable partner to the Indian Navy and associated shipbuilders.
Its capabilities are further strengthened by advanced manufacturing infrastructure, in-house R&D, and internationally recognised certifications like ABS and DNV, which enable it to meet global quality standards. Additionally, participation in projects such as autonomous underwater systems reflects its shift toward becoming a design-led, innovation-driven defence solutions provider.
4. How are Indian defence manufacturers practically reducing import dependency through localisation?
Indian defence manufacturers are reducing import dependency through a combination of localisation, policy support, and increased domestic production capabilities. Over the past decade, India has significantly lowered its defence import reliance from 11% to around 4%, reflecting a major shift toward indigenous manufacturing.
This has been enabled by initiatives like “Make in India,” indigenisation lists, and platforms such as SRIJAN, which actively identify imported components for local production. Additionally, a large share of defence procurement is now awarded to domestic firms, encouraging private sector participation and innovation. As a result, nearly 65% of defence equipment is now produced domestically, compared to a heavy import dependence earlier.
5. How will the partnership with VABO Composites strengthen KDAIL’s product portfolio in naval platforms?
The collaboration with VABO Composites is going to provide an added edge for KDAIL as it will help KDAIL introduce advanced composite solutions in its range of products. With this collaboration, KDAIL is going to co- develop composite solutions such as ship doors, hatches, and superstructures, which are lightweight but strong and have excellent resistance against corrosion and easy design.
Composites improve the efficiency of ships as they reduce the weight and help save fuel. They are also suitable from a stealth perspective due to being corrosion-resistant and non-magnetic. By combining VABO’s global expertise in composites with KDAIL’s manufacturing scale and defence integration capabilities, the partnership positions KDAIL to move up the value chain and deliver next-generation, high-performance solutions for modern naval platforms.
6. How critical are international technology partnerships for accelerating India’s defence manufacturing ambitions?
International technology partnerships are critical for accelerating India’s defence manufacturing ambitions, as they enable faster access to advanced capabilities, specialised materials, and proven design frameworks. These collaborations help bridge existing technology gaps in areas such as electronics, composites, propulsion systems, and precision engineering.
In partnership with other countries, India’s defence manufacturers will be able to incorporate the best standards of quality control and certification process, along with further development of its R&D capabilities through knowledge transfer. Collaboration would aid not only in developing new products but also in their quicker development cycles. At the same time, with proper focus on localisation, it will ensure indigenisation of the technology over time rather than continued dependence on imported technology.
7. Do collaborations like this help Indian firms move up the value chain faster?
International technology partnerships are definitely a strong value enabler. The global defence supply chain is undergoing a tectonic shift from vertically integrated country-specific systems to interconnected clusters across trusted partner nations.
This shift not only opens access to new markets but also allows companies to move beyond traditional tiered roles, enabling them to deliver higher-value solutions aligned more closely with evolving capability requirements.
8. How do you see defence shipbuilding demand evolving over the next 3–5 years?
India has very recently started taking crucial steps into devising policy to bridge the demand-supply gaps in ship-building. With increasing demand, a growing number of green-field and brown-field ports and allied support services are coming up.
This naturally translates to a boost in demand for more ships to ferry the Indian cargo carriers. Over the next 3-5 years, we are likely to see a significant increase in the capacity expansions of shipyards and new shipyards coming up to meet this continuously increasing demand.
9. What new opportunities do you see in marine engineering and allied industrial segments?
There is a good scope and opportunity for new-age fuel- driven propulsion systems. With increasing technological penetration, faster and more efficient ship designs require lighter and more accurate power plants, advanced on-board effluent treatment systems, and light-weighting of the hulls.
The Ancillary Industries also appear well-focused on offering more engineered products, particularly in composite materials. There is growing demand for more accurate navigation systems to enable efficient route planning. Shipyards are actively adopting solutions that help increase throughput and accelerate delivery timelines.
10. What is KDAIL’s strategic vision for scaling its defence and engineering capabilities from here?
Our strategic vision is centered on scaling its defence and engineering capabilities through continuous innovation, indigenisation, and global expansion. Along with this, we aim to focus on developing advanced products in areas such as specialised steel, composites, and autonomous systems, particularly those that are currently import-dependent. Strengthening R&D and working closely with organisations like DRDO will remain key to building next-generation defence solutions.
At the same time, we are expanding through international partnerships, such as its joint venture in composite technologies, to enhance its product portfolio and access global markets. With a targeted growth trajectory of 30-40% CAGR, we aspire to become a globally competitive defence manufacturer, supplying to friendly nations while supporting India’s long-term self-reliance goals.
