HFCL sets up integrated defence arm, begins operations with ₹1,570-crore export order book
New Delhi, March 25. HFCL Limited has announced a major consolidation of its defence business with the launch of a new subsidiary, HFCL Advance Systems Private Limited (HASPL), positioning it as an integrated private-sector platform spanning aerostructures, aeronautics, radar systems and thermal weapon sight technologies.
The newly created entity begins operations with a confirmed export order book worth ₹1,570 crore ($167 million), reflecting strong international demand for its manufacturing and defence technology capabilities. HFCL said the move is aimed at building a scalable, vertically integrated defence manufacturing platform aligned with India’s indigenisation drive and the growing global opportunity for Indian aerospace and defence suppliers.
Strategic consolidation under one platform
HASPL will serve as the vehicle for consolidating multiple defence and aerospace businesses. As part of the restructuring, HASPL will acquire a 100 percent stake in Spiral EHL Engineering Private Limited, an engineering and precision manufacturing firm. Spiral, in turn, will acquire the aerostructure and aeronautics business of Defsys Solutions Private Limited on a slump sale basis.
In addition, HASPL will take over HFCL’s 80 percent stake in Raddef Private Limited, strengthening indigenous radar and surveillance technology capabilities, and will also absorb HFCL’s existing Thermal Weapon Sight (TWS) business.
HFCL said these steps will create a platform covering the entire value chain – from design and prototyping to precision manufacturing and system integration – with majority ownership retained by the parent company.
Three pillars of defence capability
HASPL’s operations will rest on three key segments:
Aerostructure and aeronautics manufacturing: Through Spiral’s facilities in Gurugram and Bengaluru, the company will produce precision components and assemblies for global aerospace supply chains, a sector known for long qualification cycles and high entry barriers.
Radar and surveillance systems: Via Raddef, HASPL will offer fully indigenous radar technologies including ground and coastal surveillance, drone detection, foliage penetration radars and RF jamming systems.
Thermal Weapon Sight solutions: The TWS portfolio provides electro-optical and infrared targeting systems for infantry, armoured and special forces, enabling integration with radar and aeronautics platforms for multi-sensor capability.
Positioned for India’s indigenisation push
HFCL noted that the creation of HASPL comes at a time when India’s defence procurement landscape is undergoing structural change, with a rising share of the ₹6.2 lakh crore ($67.1 billion) defence budget earmarked for domestic procurement under the ‘Make in India’ initiative and growing global acceptance of Indian aerospace exports.
The company said its long experience in building mission-critical telecom and defence networks, combined with disciplined capital allocation and manufacturing expertise, gives it the capacity to scale quickly in this opportunity window.
Order visibility and future plans
HASPL starts with a total confirmed order book of ₹1,680 crore ($182 million), including ₹1,570 crore in export orders and ₹110 crore in domestic contracts.
HFCL Managing Director Mahendra Nahata described the move as the company’s most significant step towards building a sovereign, technology-driven defence capability. He said the platform combines proven businesses, indigenous technology and manufacturing assets, and execution strength aligned with India’s defence indigenisation priorities.
The new entity will operate from manufacturing hubs in Gurugram and Bengaluru. The transaction agreements are expected to be executed by May 31, 2026, with financial closure planned within the current calendar year.
