HFCL Ltd, a leading technology enterprise, has announced a strategic expansion and consolidation of its defence business with a confirmed export order of ₹1,570 crore to create a scalable platform for long-term growth in aero-structures, aeronautics and defence manufacturing.
The initiative integrates capabilities across aero-structures, aeronautics, radar systems and advanced thermal weapon sight solutions under a unified structure, strengthening the company’s position in India’s evolving defence ecosystem.
Subsidiary to drive consolidation
The consolidation will be executed through its subsidiary, HFCL Advance Systems Pvt Ltd (HASPL), which will serve as the vehicle for the company’s defence and aerospace operations.
With 51% stake HFCL will along with strategic investors will invest ₹175 crore in HASPL, for which the former will issue securities to them. Post the issue, HASPL will remain a subsidiary of HFCL.
HASPL will anchor multiple acquisitions and business integrations to build a vertically integrated platform spanning design, prototyping, precision manufacturing and system integration.
Acquisition-led expansion
As part of the initiative, HASPL will acquire a 100% stake in Spiral EHL Engineering Ltd, an engineering and precision manufacturing firm. Spiral will, in turn, acquire the aero-structure and aeronautics business of Defsys Solutions Pvt Ltd on a slump sale basis for ₹25 crore.
Strengthening core capabilities
HASPL will also acquire HFCL’s 80% stake in Raddef Pvt Ltd, a radar technology company, for ₹75 crore, enhancing indigenous defence electronics capabilities.
Additionally, the thermal weapon sight (TWS) business will be acquired for ₹50 crore, focusing on advanced electro-optical and mission-critical security solutions.
These steps will create a vertically integrated platform spanning design, proto-typing, precision manufacturing, and system integration capabilities with HFCL.
Export order visibility
A key highlight of the expansion is a confirmed export order book of ₹1,570 crore, providing visibility on revenue generation from global markets.
“The creation of HFCL Advance Systems represents HFCL’s most significant move with strategic commitment to building a sovereign, technology-led defence capability for India,” HFCL Ltd, Managing Director, Mahendra Nahata, said.
According to him, HASPL is starting with a confirmed export order book, proven businesses, indigenous technology and manufacturing assets, and the organisational capability to execute.
India’s defence indigenisation agenda requires private sector partners who combine technology depth with programme execution credibility. HASPL is our commitment to this national priority, and to long-term value creation for our shareholders,” Nahata said.
Execution timeline
The company will operate manufacturing facilities in Gurugram and Bengaluru, leveraging established defence and aerospace ecosystems in these regions.
The transactions are expected to be executed by May 2026, with financial closure anticipated within the current calendar year.
In a separate filing, HFCL said it is setting up a ₹580 crore preform manufacturing facility through its wholly owned subsidiary, HFCL Technologies Pvt Ltd aimed at backward integration in its optic fibre business. The project capacity will be enhanced by July 2029.