Defence manufacturer Hughes Precision raises Rs 250 Cr funding

Goa-based defence manufacturer Hughes Precision Manufacturing has secured a significant funding of Rs 250 crore from undisclosed family offices and ultra-high-net-worth individuals (UHNIs), according to wire material. Hughes Precision, which has been in operation since 2016, specializes in the production of integrated ammunition.

The recently raised funds will be utilized for the expansion of its small-caliber ammunition manufacturing capacity, increasing the output from around 80 million rounds to an estimated 220 million rounds. Additionally, the company plans to establish a new medium-caliber ammunition manufacturing facility. Hughes Precision aims to transform its current small-caliber manufacturing base into a comprehensive ammunition platform that can cater to various segments within the defence market.

Hughes Precision's order book currently stands at Rs 1,000 crore, with a substantial portion, approximately 60%, of the orders originating from the Indian market, while the rest are placed overseas. The current order book is projected to be fulfilled within the next two years. Sanjay Soni, the Managing Director of Hughes Precision, expressed his company's ambition to become one of the most respected ammunition manufacturers globally while simultaneously contributing to India's objective of attaining self-reliance in defence manufacturing.

Operating as a supplier to the Indian armed forces and paramilitary forces, Hughes Precision also exports its products to over 20 countries, including those in North America, Europe, the Middle East, Africa, and Asia. The company's strategic approach revolves around serving India's expanding domestic defence requirements while simultaneously developing internationally competitive products for global customers.

Hughes Precision believes that by increasing manufacturing scale, broadening its product portfolio, and persisting in its investment in quality and technology, it will be well-positioned for its upcoming phase of growth.