HFCL Limited's Board of Directors, in a meeting held on June 03, 2026, approved several strategic initiatives to bolster its defense business. The company will invest ₹89.25 Crore in its wholly-owned subsidiary, HFCL Advance Systems Private Limited (HASPL), through subscription to equity shares. This investment is part of a larger restructuring where HASPL will become a platform for consolidated defense operations. Furthermore, HFCL will divest up to 80% of its stake in Raddef Private Limited to HASPL for ₹75 Crore. Concurrently, HFCL will transfer its thermal weapon sight (TWS) business to HASPL on a slump sale basis for ₹50 Crore. These transactions aim to create a focused and scalable defense platform. In a significant move, HASPL will acquire 100% of HFCL Defence Systems Private Limited (HDSPL) from Defsys Solutions Private Limited for ₹25 Crore. HASPL will then invest ₹25 Crore in HDSPL to acquire the aerostructure business of Defsys. These acquisitions are expected to provide immediate access to an export order book of approximately ₹1,890 Crore, along with established capabilities and customer relationships, strengthening HFCL's position in the defense sector and aligning with the 'Make in India' initiative.
