After entering the country’s crowded automobile space late last year by acquiring a stake in MG Motor India, Sajjan Jindal-led JSW Group is foraying into the defence sector with the establishment of a new business vertical, JSW Defence and Aerospace (JSW Defence).

JSW Defence marked its entry by acquiring a majority stake in an extreme off-road vehicle company, Gecko Motors, now renamed as JSW Gecko Motors.

Parth Jindal, scion of JSW Group, said, “At $73.8 billion, India as a country has a large defence budget. By 2030, 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.”

“JSW is foraying into capex-heavy industries. A lot will depend on the group’s ability to raise affording funding as they are yet to start manufacturing cars or produce defence equipment in large quantity,” said a senior analyst at a leading brokerage firm.