A sweeping defence consolidation reshapes HFCL’s future, as its new subsidiary unites aerostructures, radar and thermal weapon sights with a ₹16.8 billion order book already secured.
HFCL Limited has announced a major consolidation of its defence manufacturing and aerospace businesses, creating a new subsidiary, HFCL Advance Systems Private Limited (HASPL).
The entity will integrate aerostructure and aeronautics manufacturing, radar systems and thermal weapon sight solutions, debuting with a confirmed order book of ₹16.8 billion, including ₹15.7 billion in exports.
In a release, the company highlighted that the restructuring involves HASPL acquiring Spiral EHL Engineering, which will take over the aerostructure and aeronautics business of Defsys Solutions, as well as HFCL’s radar subsidiary, Raddef Private Limited, and its thermal weapon sight operations.
This consolidation is designed to establish a vertically integrated platform spanning design, prototyping, manufacturing, and system integration, with HFCL retaining a majority equity stake.
The new subsidiary will operate facilities in Gurugram and Bengaluru. HFCL’s radar portfolio includes ground surveillance, coastal monitoring, drone detection, and RF jamming technologies, while its thermal weapon-sight business provides electro-optical and infrared targeting systems.
The move comes against the backdrop of India’s defence procurement reforms, which emphasise indigenisation under the ‘Make in India’ programme, which HFCL acknowledged.
With a defence budget of ₹6.2 trillion and a growing share earmarked for domestic suppliers, HFCL aims to position itself as a key private-sector player in defence and aerospace manufacturing.
The company already has experience in mission-critical telecom networks for defence services and intends to leverage this expertise in its expanded role.
Managing Director Mahendra Nahata described the creation of HASPL as a strategic commitment to building sovereign, technology-led defence capacity.
Transactional agreements are scheduled for completion by May 2026, with financial closure expected within the year, marking HFCL’s most significant expansion into defence electronics to date.
