HFCL Inaugurates Defence Equipment Factory in Hosur
HFCL Ltd., an Indian manufacturer of Optical Fibre Cables (OFCs) and telecommunication equipment, has inaugurated its new facility for defence-related equipment manufacturing in Hosur, Tamil Nadu. This information was conveyed by HFCL in a stock filing dated 24th December 2024.
New Facility to Cater to Indian & Global Defence Forces
HFCL’s new facility will roll out equipment for Indian defence forces, as well as for export purposes.
Facility to Manufacture 5,000 Thermal Weapon Sight units Annually
Aforementioned facility will enable the company to produce up to 5,000 units of Thermal Weapon Sight annually. This facility has Class 100000 cleanrooms and Class 10000 cleanrooms* for the production of Thermal Imaging Cores and Thermal Weapon Sights.
*Class 100000 and Class 10000 refer to categories of cleanrooms. Class 100000 corresponds to ISO 8 while Class 10000 corresponds to ISO 7 standards.
In its release, HFCL described its Thermal Weapon Sights as a ‘technological breakthrough’ in terms of their design and performance. These sights have been designed to be mounted light and heavy weapons such as rifles, Light Machine Guns (LMGs), and rocket launchers. These sights are compliant with India’s JSS 55555 standard and US’ MIL-STD 810 standard.
2,50,000 Electronic Fuzes to be Rolled Out Every Year
HFCL will also be rolling out up to 2,50,000 Electronic Fuzes for artillery guns per year. HFCL will be producing Percussion, Proximity and Time Fuzes. These fuzes are used to detonate charges upon impact.
Defence Radio & Radars to be Manufactured at Hosur
In addition to this, HFCL will manufacture up to 1,000 units each of High Capacity Radio Relay (HCRR) and Ground Surveillance Radars annually.
HCCR is used for long-range transmission of data and offer speeds up to 100 Mbps for Point-to-Point and Point-to-Multi-Point transmission. HFCL’s HCCR has features such as frequency hopping and adaptive power control. While frequency hopping makes the relayed data less susceptible to interceptions, adaptive power control enables energy efficient functioning.
HFCL’s Ground Surveillance Radars are designed for threat detection, and employ Frequency Modulated Continuous Wave Radar (FMCW) technology. These radars are compact in design, and are designed for monitoring perimeters and borders, and for counter-drone operations.
“World-Class Defense Technologies to Armed Forces” – HFCL MD
Mr. Mahendra Nahata, MD of HFCL Ltd., while speaking at the inauguration, said that the company’s new facility in Hosur is a testament to HFCL’s “…unwavering dedication to innovation, excellence, and national progress”. He added, “This facility will allow us to deliver world-class defense technologies to armed forces, enabling them to operate with greater efficiency and confidence in critical missions”.
During the company’s earnings call for its Q2 FY-25 financials, Mr. Nahata had elaborated that India’s defence sector presents a ‘lucrative’ opportunity. He added that for the coming decade, these opportunities would be valued at about USD 138 billion, owing to the growing demand for defence equipment and services.
Private Investment Opportunities in India’s Defence Sector Set to Increase
It was in 2001 that India’s defence sector was opened to private investments up to 100%. Since then, the contribution of private sector in India’s defence sector has come a long way. In FY-24, private sector accounted for 22% of the India’s total defence production during the year, as per data from Department of Defence Production.
Moreover, the defence corridor in Uttar Pradesh has reportedly attracted major investments for defence production. As per a July 2024 report by the Economic Times, the UP defence corridor has attracted investments worth about Rs. 25,000 crore through 154 Memoranda of Understanding (MoUs) with various companies.
As for the future, in FY-25 defence production in India is estimated to reach Rs. 1.75 lakh crore, and defence exports are expected to be around worth Rs. 35,000 crore. Further, by FY-29, this figure is projected to swell to Rs. 3 lakh crore, with defence exports estimated to be around Rs. 50,000 crore in value. Therefore, looking ahead, the defence sector presents valuable opportunities for the private sector.
About HFCL Ltd.: HFCL was founded in 1987, and has its headquarters in Delhi. It caters primarily to the communication sector through optical fibre cables and transmission & access equipment manufacturing. HFCL has optical fibre cables manufacturing facilities in Goa and Hyderabad. HTL Limited, the company’s subsidiary, also has an optical fibre cables manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.
