SEBI-registered Maharashtra Defence and Aerospace Venture Fund (MDAVF) managed by IDBI Capital Markets & Securities (ICMS) has committed Rs 480 crore across 27 MSMEs so far, said ICMS on Wednesday. Focusing on missile systems, aerospace technologies, naval systems, and electronic warfare, the fund has invested around Rs 406 crore in 22 MSMEs and has made full and partial exits from 12 companies, realizing divestment proceeds of around Rs 281 crore. The fund was registered as an alternative investment fund with SEBI in September 2018.
ICMS said the fund’s investments have created more than 3,000 direct jobs and an estimated 10,000- 15,000 indirect jobs across Maharashtra. Notably, 13 of the 27 MDAVF-backed companies are led by women promoters and entrepreneurs.
The fund’s investments are in line with the government’s ‘Make in India’ initiative, prioritizing the development of indigenous capabilities in defence production. With sectors such as nuclear solutions, UAV automation, marine technologies, and aerospace advancements seeing progress, the fund “is poised to leverage emerging opportunities in advanced technologies and manufacturing, providing a resilient platform for sustainable growth, innovation, and self-reliance,” ICMS said in a statement.
“MDAVF is committed to supporting India’s vision of self-reliance in defence and aerospace by channelizing strategic investments into high-potential ventures. We are dedicated to fostering technological breakthroughs that not only strengthen national security but also enhance indigenous capabilities. By backing innovative and sustainable growth in critical sectors, MDAVF is proud to contribute to India’s defence ecosystem and the vision of Atmanirbhar Bharat,” said Amey Belorkar, Fund Manager – MDAVF, IDBI Capital Markets & Securities Ltd.
The support to MSMEs assumes significance as the government intends to make small businesses among the key beneficiaries of its Technology Development Fund (TDF) scheme. The scheme offers grants in aid to MSMEs and startups along with academic and scientific institutions for the development of defence and dual-use technologies that are currently not available in the Indian Defence Industry. Under the scheme, 16 MSMEs and 20 startups have been supported since January 2022, Minister of State in the Defence Ministry Sanjay Seth had informed Parliament in November last year.