HFCL to Expand Defence, Aeronautics, and Aerostructure Business Through Strategic Consolidation
HFCL Limited announced a major strategic initiative on March 25, 2026, to expand and strengthen its Defence business, in line with its long-term growth strategy. The initiative involves the creation of HFCL Advance Systems Private Limited (HASPL), a platform for consolidating several businesses.Transaction Overview
HFCL, along with Mr. Anant Nahata, Mr. Sushant Mohan Gupta, Mrs. Shubhra Gupta, and financial/strategic investors, will invest an amount not exceeding INR 175 crore into HASPL. In return, HASPL will issue securities to the investors. Post-completion, HASPL will remain a wholly-owned subsidiary of HFCL.Here’s the planned shareholding structure:
| Name of the Shareholder | Shareholding Percentage |
|---|---|
| HFCL Limited | 51 |
| Mr. Anant Nahata | 6.5 |
| Mr. Sushant Mohan Gupta | 4.75 |
| Mrs. Shubhra Gupta | 4.75 |
| HFCL Advance Employee Trust (to be formed) | 15 |
| Financial/Strategic Investor(s) | 18 |
| Total | 100 |
Business Consolidation Initiatives
The consolidation plan includes several key acquisitions and transfers:- Acquisition of 100% of Spiral EHL Engineering Private Limited (Spiral) for a cash consideration not exceeding INR 25 crore. Spiral is an engineering and technology company with precision component manufacturing capabilities.
- Acquisition of an 80% stake in Raddef Private Limited from HFCL for a cash consideration not exceeding INR 75 crore. Raddef is engaged in the design and development of indigenous radar systems.
- Acquisition of HFCL’s Thermal Weapon Sight (TWS) business on a slump sale basis for a cash consideration not exceeding INR 50 crore.
- Investment/loan to Spiral for the acquisition of the Aeronautics and Aerospace business of Defsys Solutions Private Limited. This transaction involves a cash consideration not exceeding INR 25 crore, and will result in a goodwill of approximately INR 292 crore.
Business Profile and Order Book
The consolidated platform will include Aeronautics and Aerostructure manufacturing, Radar and surveillance systems, and Thermal Weapon Sight (TWS) solutions. The aeronautics and aerostructure business has a confirmed export order book of approximately INR 1,570 crore, and a domestic order book of approximately INR 110 crore.Rationale
The transaction is intended to establish a focused and scalable platform to strengthen HFCL’s Defence business and expand its presence in the Aeronautics and Aerostructure segment through HASPL. Key objectives include entry into the aerospace manufacturing segment, immediate order book visibility with export orientation, creation of an integrated defence platform, and capability enhancement across design, engineering, and manufacturing.Timeline
The transactional agreements are expected to be executed on or before May 31, 2026, with completion expected within the current calendar year.Source:
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