HFCL to Boost Defence Manufacturing with Rs 230 Crore Investment in Andhra Pradesh

HFCL, a leading telecom gear maker, announced on Thursday its decision to invest approximately Rs 230 crore to inaugurate a new defence manufacturing plant in Andhra Pradesh's Sri Satya Sai District. The plant aims to boost India's indigenization efforts in defence through the production of Multi-Mode Hand Grenades (MMHG) and related products.

The Board of Directors has approved the expenditure, which marks a substantial commitment to India's strategic and growing defence sector. The project is slated for completion by December 2027 and illustrates a significant step in enhancing HFCL's presence in defence manufacturing.

The financing strategy encompasses internal accruals, debt, and funds raised through a preferential issue of convertible warrants. HFCL is capitalizing on increased global defence spending driven by geopolitical tensions, aligned with India's push towards self-reliance in defence production.

(With inputs from agencies.)