HFCL Limited has announced a strategic expansion and consolidation of its defence business, establishing a scalable platform to drive long-term growth in high-value aerostructure, aeronautics and defence manufacturing. The initiative brings together complementary capabilities across aerostructures, aeronautics, radar systems, and advanced thermal weapon sight solutions under one unified platform, strengthening HFCL’s position in India’s rapidly evolving defence ecosystem. One of the key highlights of the expansion is a confirmed export order book of approximately Rs 15.70 billion.

HFCL will implement this consolidation through its subsidiary, HFCL Advance Systems Private Limited (HASPL), which will act as the vehicle for multiple defence and aerospace business.

As part of this initiative, HASPL will:

  • Acquire 100 per cent stake in an engineering and precision manufacturing company, Spiral EHL Engineering Limited (Spiral) which in turn will be acquiring the aerostructure and aeronautics business of Defsys Solutions Private Limited (Defsys) on a slump sale basis.
  • Acquire HFCL’s 80 per cent stake in Raddef Private Limited, a Radar Technology Company, strengthening indigenous defence electronics capabilities
  • Acquire HFCL’s existing thermal weapon sight (TWS) business

These steps will create a vertically integrated platform spanning design, prototyping, precision manufacturing, and system integration capabilities with HFCL having majority equity.

HFCL brings to this opportunity multiple years of complex manufacturing experience in mission-critical networks for defence services, built through telecom infrastructure deployments in the most demanding terrains; a disciplined capital allocation track record; and the organisational capability to execute at scale.

  • Aerostructure and Aeronautics Manufacturing: HASPL with the integration of Spiral’s manufacturing capability will encompass precision component manufacturing and product assembly for Aerostructure and Aeronautics programs. With certified facilities in Gurgaon and Bengaluruand a confirmed export order book of Rs 15.70 billion, this business operates at the intersection of advanced manufacturing and global aerospace supply chains, a domain characterised by years-long qualification cycles and high barriers to entry for new suppliers. Spiral has agreed renaming itself as HFCL Defence Systems Limited or any such other name with prefix HFCL, as may be approved by regulatory authorities. HFCL’s Board has also approved an issuance of NOC for using the HFCL name as prefix.
  • Radar and Surveillance Systems: Through Raddef Private Limited (an existing subsidiary of HFCL), HASPLbrings fully indigenous radar technology capability to the Indian defence ecosystem. These systems span ground surveillance, coastal and maritime surveillance, drone detection, foliage penetration radars, and radio frequency (RF) jamming technologies — addressing the highest-priority intelligence and security requirements of India’s armed forces. Indigenous Radar Capability is a strategic national asset.
  • TWS solutions: HFCL’s TWS business delivers advanced electro-optical and infrared targeting solutions for defence and security applications. mission-critical, night-capable, and field-proven, TWS systems are a recurring requirement across infantry, armoured, and special forces platforms globally. The transfer of this business to HASPL creates a natural multi-sensor systems integration opportunity with the Radar and Aeronautics capabilities on the same platform.

Commenting on this announcement, managing director, HFCL, said, “The creation of HFCL Advanced Systems Private Limited represents HFCL’s most significant move with strategic commitment to building a sovereign, technology-led defence capability for India. We are 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 program execution credibility. HASPL is our commitment to this national priority, and to long-term value creation for our shareholders.”

The company will have manufacturing facilities in Gurgaon and Bengaluru, leveraging two of India’s most established defence and aerospace talent hubs. The transactional agreements are targeted for execution on or before May 31, 2026, with financial closing expected within the current calendar year itself.