HFCL Develops Critical Defense Technologies Indigenously with Focus on Exports

 HFCL, a leading technology enterprise specializing in the manufacturing of high-end telecom equipment, optical fiber, and optical fiber cables, as well as providing communication network solutions for telecommunications, defense, and railway sectors, has indigenously designed and developed various cutting edge defence technologies including Electronics Fuzes, Ti Cores for Thermal Sights, Thermal Weapon Sights for light machine guns and assault rifles, Ground Surveillance Radars for various range and applications, High Capacity Radio Relays, among others. HFCL is also in the advanced stage of discussions to adopt defence technology and products developed by the Indian Agencies.

The Company’s indigenously developed electronic fuzes for artillery ammunition have already undergone
extensive testing. The intellectual property rights of these products are entirely owned by HFCL in line
with the Aatmanirbhar Bharat Abhiyan. Discussions are underway for the export of these indigenously
developed fuzes.

HFCL has also designed 12-micron Ti-core based thermal weapon sight for defence forces, a feat
accomplished by few global companies. HFCL has also participated in tenders for thermal weapon sights
for light machine guns and rocket launchers with its indigenously developed products, which are
currently in various stages of trials.

Further, to fulfill the critical Information, Surveillance, and Reconnaissance needs of Defense and
Security Forces, HFCL has strategically focused on developing advanced radar technologies. In its initial
offering, HFCL through its subsidiary, Raddef Private Limited, an R&D enterprise specializing in cutting-
edge radars and RF solutions, has designed and developed a range of ground and coastal surveillance
radars to meet diverse operational needs. These radars employ Frequency Modulated Continuous Wave
technology, which offers numerous advantages over other radar technologies, including high
accuracy, low power consumption, and resistance to interference.

HFCL is also in discussion with a large player for the development of critical sub-systems for their overall
surveillance platform.

The surveillance radars have been subjected to extensive trials for ground and coastal surveillance
applications. The senior defense officials recently visited the Company’s R&D facility at Bangalore and
appreciated the progress made by HFCL.

HFCL is also one of the shortlisted vendors in the Make-II program of the Indian Army for upgrading
armaments of BMP 2/2K, having successfully cleared first level of user trials.

Aiming to be a significant contributor to the defense sector and fortify national security, HFCL has
invested in its R&D capabilities over the past five years to develop various defense technologies.

The Indian Defence forces, recognized as the world’s fourth largest armed force, stands on the brink of a
significant transformation. The Government has identified the Defence sector as pivotal area for the
‘Aatmanirbhar Bharat’ initiative. This strategy focuses on fostering indigenous manufacturing
capabilities and strengthening a robust research and development ecosystem.

India accounts for 3.7% of global military spending amounting to 6.21 lakh crore, making it the third
highest military spender in the world after the U.S. and China. With active initiatives by Indian and
various global governments to modernize and upgrade defense networks and systems, there is a total
addressable market of multi billion dollars.

Leveraging its strong R&D capabilities, HFCL aims to address the Defence market nationally and
internationally. The market size for HFCL’s current products is expected to be in excess of USD 10 Billion.

Mr. Mahendra Nahata, Managing Director, HFCL, said, “HFCL has successfully created a comprehensive,
its IPR owned state-of-the-art defense product portfolio which are not only of national importance but
also have huge demand for export. Entering the defense business on a significant scale, we are exploring
new product opportunities and forming strategic alliances to grow and contribute substantially to India’s
defense sector. Our innovative products for the Indian Defense Forces and global markets are poised to
boost our revenue and profitability”.

With development of new generation defence product portfolio and ongoing sales and marketing efforts
both domestically and in international markets, HFCL expects notable increase in its revenue and
profitability from the defence sector in coming years.

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