Shares of Hindustan Aeronautics Limited (HAL) turned green and gained 2% on 14 August after the company announced that it has partnered with Adani Defence and BEML to manufacture fuselage structures for the indigenous Prachand Light Combat Helicopter (LCH).

The move will expand HAL’s production capacity and bring private-sector companies deeper into India’s defence aerospace supply chain.

Under the new agreements, Adani Defence will manufacture 42 fuselages, while BEML will produce 48. HAL will manufacture the remaining fuselages required for the current production programme. This is the first time private industry has been integrated into the production of Prachand helicopter fuselage structures.

The partnerships are important because HAL is currently executing orders worth around Rs 62,700 crore for 156 Prachand helicopters, with 90 helicopters ordered by the Indian Army and 66 by the Indian Air Force. Deliveries are scheduled to begin from 2027-28 and will continue over the following five years.

The expanded manufacturing network is expected to help HAL meet delivery timelines while increasing the participation of Indian companies in defence production. HAL said the move will also create opportunities for MSMEs, component manufacturers and other aerospace suppliers.

The Prachand programme is a major part of India’s push towards self-reliance in defence manufacturing. The helicopter currently has around 45% indigenous content by value, which is expected to increase to more than 65% in the later stages of the series production programme.

The helicopter will also feature several upgrades over the limited-series production version, including indigenous air-to-ground missiles, modern electronic warfare systems, nuclear detection capability, secure datalink, obstacle avoidance and directed infrared countermeasures.

For HAL, BEML and Adani Defence, the partnership highlights the growing opportunities in India’s domestic aerospace and defence manufacturing sector. It also shows how large defence programmes are increasingly being supported by a wider network of public and private Indian manufacturers.

At 2:55 pm, the shares of Hindustan Aeronautics were trading 1.61% higher at Rs 5,024.60 on the NSE.

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