Ethereal to Invest ₹519 Crore in Rocket Engine Manufacturing Facility in Tuticorin

Chennai, August 2025 — In a major boost to India’s private space sector, Bengaluru-based space technology startup Ethereal Exploration Guild (EtherealX) is setting up a ₹519 crore ($60 million) manufacturing and testing facility for medium-lift rocket engines in Tuticorin, Tamil Nadu. The project is expected to create nearly 582 direct jobs and position Tuticorin as a strategic hub for space and defence technologies.

Tamil Nadu’s Growing Space-Tech Hub

The new EtherealX facility is part of three major defence and space technology investments announced for Tuticorin, amounting to over ₹5,600 crore. Alongside EtherealX’s rocket engine unit, the state will also host a ₹5,000 crore ammunition and propellant manufacturing facility by Sakthi Group and a ₹121 crore rocket manufacturing and testing unit by Agnikul Cosmos. Collectively, these projects are expected to create thousands of jobs and build a strong space-tech ecosystem in southern Tamil Nadu.

The region’s importance is further enhanced by its proximity to ISRO’s second spaceport at Kulasekarapattinam, which is currently under construction. This closeness to a launch site will significantly improve operational efficiency for private space companies like EtherealX.

EtherealX and Its Vision

Founded in 2022 by former ISRO engineers Manu J. Nair, Shubhayu Sardar, and Prashant Sharma, EtherealX is working on the world’s first fully reusable medium-lift rocket, named Razor Crest Mk-1. Unlike existing rockets, Razor Crest is designed for the recovery of both the booster and the upper stage, a technological milestone that even global leaders have yet to achieve.

The company has already developed advanced technologies such as:

• A semi-cryogenic RP-1/LOX thrust chamber with 40 kN thrust and high efficiency, using a novel Full Flow Segregated Cooling Cycle.

• A proprietary feed cycle that redirects re-entry heat to power engines, removing the need for traditional heat shields and reducing costs.

• India’s highest-pressure RP-1 test setup, capable of operating at 200 bar with rapid responsiveness.

• A 700,000 sq ft rocket testing facility in Cuddalore, Tamil Nadu — the largest private facility of its kind in the country.

EtherealX has also raised $5 million in seed funding to support the development of reusable rocket engines and aims for a demonstration launch by 2026.

Why Tuticorin?

Tuticorin was chosen for its strategic location near ISRO’s new spaceport, strong connectivity, and Tamil Nadu’s new space-tech policy, which is encouraging private sector investment with an ambitious target of ₹10,000 crore in investments and 10,000 jobs over five years.

By clustering with other defence and space-tech industries, EtherealX expects to benefit from shared infrastructure, skilled workforce availability, and state-backed incentives.

EtherealX’s ₹519 crore investment is more than just an industrial expansion — it represents India’s growing private capability to build, test, and launch advanced rockets on par with global standards. With a reusable medium-lift rocket in the pipeline and a state-of-the-art facility in Tuticorin, the company is set to play a crucial role in shaping the future of India’s space ambitions.