Goa-based defence manufacturer Hughes Precision Manufacturing Pvt Ltd has completed an investment round exceeding ₹250 crore, securing fresh capital to expand production and broaden its ammunition portfolio. The funding combines primary and secondary investment from a group of ultra-high-net-worth individuals, according to a company announcement issued on September 23, 2026.
The company plans to increase its annual small-caliber ammunition capacity from approximately 80 million rounds to 220 million rounds. It will also establish a dedicated manufacturing facility for medium-caliber ammunition, marking a significant expansion beyond its existing product range.
The move is intended to position Hughes Precision to serve a wider customer base, including the Indian Armed Forces, police and paramilitary organisations, as well as approved international defence buyers. The company said the investment will be directed toward manufacturing infrastructure, quality systems, technology and workforce development.
The expansion follows a reported surge in demand. Hughes Precision’s order book has crossed ₹1,000 crore, with around 60% of orders originating in India and 40% coming from export customers. The orders are expected to be executed over roughly two years.
Domestic demand includes requirements from the Indian Army, police and paramilitary forces. International business extends across more than 20 countries in North America, Europe, the Middle East, Africa and Asia. A July report on the company’s order-book milestone similarly identified a 60:40 split between Indian and overseas customers.
The company has described the funding as the next stage of a strategy that began with small-caliber ammunition and is now moving toward a broader, multi-segment manufacturing platform. Hughes Precision says it is India’s only manufacturer and exporter of high-precision sniper ammunition used by Special Forces, while its research and development centre is recognised by the Department of Scientific and Industrial Research.
The expansion comes as India seeks to strengthen indigenous defence production and increase exports. Government policies promoting domestic procurement and private-sector participation have encouraged Indian companies to develop capabilities in areas traditionally dominated by state-owned manufacturers. India has also set ambitious goals for defence exports, creating opportunities for companies that can meet international standards and sustain large-scale production.
Hughes Precision Managing Director Sanjay Soni said the investment would allow the company to increase small-caliber output, enter the medium-caliber segment and continue investing in quality, technology and personnel. He said the company’s long-term ambition was to become a globally respected ammunition manufacturer while contributing to India’s drive for greater defence self-reliance.
Hughes Precision was established in 2016 and has developed an integrated manufacturing and research operation serving defence, law-enforcement and approved international customers. It received an award for export performance in the defence MSME sector from Defence Minister Rajnath Singh last year.
Earlier reporting stated that Hughes had planned a new 100,000-square-foot facility and intended to raise small-caliber production to about 200 million rounds annually. The latest announcement gives a higher target of 220 million rounds, suggesting that the company’s expansion plans have been revised upward.
STEER Advisors acted as the sole transaction adviser. With the new funding, Hughes Precision joins a growing group of Indian private defence manufacturers seeking to combine domestic procurement opportunities with export-led growth. Its ability to deliver the planned capacity increase while maintaining safety, reliability, regulatory compliance and consistent product quality will determine how successfully it converts the capital and order pipeline into sustained expansion.
