VIJAYAWADA: HFCL Limited has announced that its Board of Directors has approved the establishment of a new defence manufacturing facility in Sri Satya Sai district of Andhra Pradesh.
The facility, with an initial capital outlay of around Rs 230 crore, will focus on the production of Multi-Mode Hand Grenades (MMHG) and similar defence products.
The company stated that the proposed facility will have a capacity addition of nearly 40 lakh units and is expected to be completed by December 2027. Financing will be met through internal accruals, debt, and proceeds from preferential issue of convertible warrants, or a combination thereof.
HFCL has further informed that the initiative is part of its long-term strategic expansion into high-value defence manufacturing, aligned with India’s national objective of self-reliance in defence production.
The company highlighted that global defence sectors are witnessing unprecedented growth due to geopolitical uncertainties and increased investments in advanced technologies, while India is pushing strongly for indigenisation and import substitution to meet requirements of the country.
The new facility is expected to significantly strengthen HFCL’s defence product portfolio and create a strong platform for future growth.
HFCL President and Company Secretary Manoj Baid, in a communication to stock exchanges, said the initiative would enhance the company’s capabilities in defence manufacturing and position it strategically for sustained growth in the sector.