HFCL to be Allotted 1,000 Acre in Andhra for Defence Factory
HFCL Ltd., an Indian manufacturer of Optical Fibre Cables (OFCs), telecom products, and defence equipment, will be allocated 1,000 acre of land in Andhra Pradesh’s Sri Sathya Sai District for setting up a greenfield defence manufacturing facility. As per the company’s stock filing dated 11th September 2025, the Industries and Commerce (Infra) Department of Andhra state government has approved this allotment, and this land will be allotted by Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIICL).
APIICL will allot this land in two phases. In Phase-1, 329 acre of land will be allotted to HFCL, whereas in Phase-2 the remaining 671 acre will be allotted. HFCL will manufacture artillery ammunition shells, Multi-Mode Hand Grenades (MMHGs), TNT filling, and other defence-related items at this planned facility. Notably, HFCL signed a Technology Licensing Agreement with Defence Research and Development Organisation (DRDO) during Q1 FY26.
HFCL had diversified into the defence sector in December 2024 with the inauguration of its Hosur facility, which engages in producing equipment for Indian as well as overseas defence markets. Recently in August 2025, the company’s subsidiary, HTL Ltd., secured an order to supply OFCs with military-grade accessories to the Indian Army.
The company’s stock gained 3.44%, with share price rising to Rs. 72.70 apiece a day after the aforementioned intimation to the stock exchanges.
