New Delhi, March 25 Domestic technology firm HFCL Limited has consolidated its defence business under a new entity, HASPL, which will commence operations with a total order book of ₹1,680 crore, the company said on Wednesday.
The company also announced its foray into aeronautics manufacturing with inorganic expansion to be executed through a newly acquired firm, Spiral EHL Engineering Private Limited.
"HFCL will implement this consolidation through its subsidiary, HFCL Advance Systems Private Limited (HASPL), which will act as the vehicle for multiple defence and aerospace business," the company said in a statement.
HFCL said that the initiative brings together complementary capabilities across aerostructures, aeronautics, radar systems, and advanced thermal weapon sight solutions under one unified platform.
"One of the key highlights of the expansion is a confirmed export order book of approximately ₹1,570 crore," the statement said.
As part of this initiative, HASPL will acquire 100 per cent stake in an engineering and precision manufacturing company, Spiral EHL Engineering Limited (Spiral) which in turn will be acquiring the Aerostructure and Aeronautics business of Defsys Solutions Private Limited (Defsys) on a slump sale basis.
These steps will create a vertically integrated platform spanning design, prototyping, precision manufacturing, and system integration capabilities with HFCL having majority equity, the statement said.
HFCL, Managing Director, Mahendra Nahata, said that the creation of HFCL Advanced Systems Private Limited represents HFCL's most significant move with strategic commitment to building a sovereign, technology-led defence capability for India.
"We are starting with a confirmed export order book, proven businesses, indigenous technology and manufacturing assets, and the organisational capability to execute," he said.
The move by the company comes when the government is pushing for indigenisation under 'Make in India', with a rising share of the ₹6.2 lakh crore defence budget earmarked for domestic procurement, and Indian aerospace exports gaining global credibility.
HASPL upon its formation will have an export order book of ₹1,570 crore.