New Delhi: Telecom gear maker HFCL on Thursday said it will invest approximately Rs 230 crore to establish a new defence manufacturing facility in Andhra Pradesh.
The plant will come up in the Sri Satya Sai District of the state, HFCL said in a filing to the stock exchanges.
"The Board of Directors...has approved the establishment of a defence manufacturing facility for the manufacture of Multi-Mode Hand Grenade (MMHG) and similar other products in Sri Satya Sai District of the State of Andhra Pradesh at a total initial capital outlay of Rs 230 crore," HFCL said.
The project is expected to be completed by December 2027, the filing added. HFCL plans to fund the Rs 230 crore capital outlay through a combination of internal accruals, debt financing and proceeds from a preferential issue of convertible warrants.
"The domestic and global defence sectors are witnessing unprecedented growth, driven by heightened geopolitical uncertainties, enhanced focus on national security and increasing investments by governments worldwide in advanced defence technologies.
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"India, in particular, is witnessing a strong policy push under import substitution, indigenisation and long-term defence procurement programmes, resulting in significant opportunities for domestic manufacturers with strong engineering and manufacturing capabilities," HFCL said.
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The defence facility will enable HFCL to design, develop and manufacture advanced defence systems, significantly strengthening its defence product portfolio and long-term growth prospects in the strategic sector, it added.
