Defence manufacturer Hughes Precision raises Rs 250 Cr funding

Goa based defence manufacturer Hughes Precision Manufacturing has raised Rs 250 crore from undisclosed family offices and ultra-high-net-worth individuals (UHNIs).

Established in 2016, Hughes Precision is an integrated ammunition manufacturer. The company said it will use this funding for the expansion of its small-caliber ammunition manufacturing capacity from approximately 80 million rounds to 220 million rounds. This will also be used for the establishment of a medium-caliber ammunition manufacturing facility.

The company said the expansion fits into its strategy from a small-caliber manufacturing base into a broader ammunition platform capable of serving multiple segments of the defence market.

Hughes Precision said its order book has crossed Rs 1,000 crore, with approximately 60% of the orders coming from the Indian market and rest overseas. The company said the current order book is scheduled for execution over approximately the next two years.

Hughes Precision Managing Director Sanjay Soni said, “Our ambition is to build Hughes Precision into one of the most respected ammunition manufacturers globally while contributing meaningfully to India’s objective of becoming increasingly self-reliant in defence manufacturing.”

Hughes is a supplier to the Indian armed forces as well as Paramilitary forces. It also exports to more than 20 countries spread across North America, Europe, the Middle East, Africa and Asia.

For Hughes Precision, the strategy is built around both opportunities: serving India’s growing domestic defence requirements while developing internationally competitive products for global customers. The Company believes that increasing manufacturing scale, broadening its product portfolio and continuing to invest in quality and technology will position Hughes Precision for its next phase of growth.