HFCL has announced plans to establish a new defence manufacturing facility in Andhra Pradesh with an initial investment of around ₹230 crore. The proposed unit will manufacture Multi-Mode Hand Grenades (MMHG) and similar defence products as part of the company’s strategic expansion into the defence manufacturing sector.
The company informed stock exchanges that its Board of Directors approved the project during a meeting held on May 14, 2026. The facility will be set up in Sri Satya Sai District of Andhra Pradesh and is expected to be completed by December 2027.
The upcoming plant will have a planned production capacity of nearly 40 lakh units of Multi-Mode Hand Grenades and related products. HFCL said the project is aligned with India’s “Aatmanirbhar Bharat” initiative aimed at boosting indigenous defence manufacturing and reducing dependence on imports.
According to the company, the domestic and global defence sectors are witnessing strong growth driven by rising geopolitical uncertainties, increased focus on national security, and higher investments in advanced defence technologies by governments worldwide.
HFCL stated that the new facility will enhance its capability to design, develop, and manufacture advanced defence systems while strengthening its long-term presence in the strategic defence sector.
The company added that the investment will be funded through a combination of internal accruals, debt financing, proceeds from preferential issue of convertible warrants, or a mix of these sources.