ValueQuest commits Rs 775 Cr to advance India’s defence, manufacturing push


ValueQuest Investment Advisors, a Mumbai-based investment manager, has committed ₹775 crore across three Indian companies operating in defence technology, precision engineering and power infrastructure. The investments include new funding for Sagar Defence Engineering and Rational Engineers, along with an additional investment in TASE Global.


Three Companies Receiving Investment


Sagar Defence Engineering develops unmanned and autonomous systems for maritime and defence applications. Rational Engineers manufactures specialised copper conductors and insulation products used in power and distribution transformers. TASE Global produces precision components and assemblies for international companies across medical technology, aerospace, defence and industrial sectors.


ValueQuest's Investment Strategy


ValueQuest manages more than ₹6,000 crore through its private equity platform, including co-investments, and is developing its SCALE Fund II. The firm aims to support Indian businesses that can build advanced technologies, strengthen manufacturing capabilities and compete in international markets rather than simply increase production capacity.


Growing Opportunities in Defence and Manufacturing


India's defence manufacturing sector is expanding as the government encourages domestic production and reduces dependence on imports. Defence production reached a record ₹1.78 lakh crore in FY26, while exports increased to ₹38,424 crore. The government aims to achieve ₹3 lakh crore in annual production and ₹50,000 crore in exports by 2029.


Rising Demand for Power Infrastructure


India's growing electricity requirements are creating opportunities for manufacturers of transformers and related components. The National Electricity Plan projects peak power demand of 388 GW by 2032 and significant expansion of the country's transmission network. This could increase demand for specialised engineering products and power infrastructure equipment.

ValueQuest says it is prioritising the quality of businesses over the speed of investment. Its Tristar Fund has also secured more than ₹2,100 crore in commitments within 15 months of its first close, exceeding its original fundraising target.