DCX Systems Limited has recently signed a significant Memorandum of Understanding (MoU) with the Government of Tamil Nadu at the TN Rising Investment Conclave held in Hosur on September 11, 2025. This collaboration marks a major strategic investment of Rs 850 crore aimed at setting up a state-of-the-art defence electronics manufacturing unit in Krishnagiri, near Hosur, that will bolster India’s indigenous defence production capabilities in line with the “Make in India” initiative.
Key Highlights
- DCX Systems Ltd, in partnership with Israel Aerospace Industries (IAI) and its subsidiary ELTA Systems, signs MoU with Tamil Nadu government for manufacturing advanced defence technologies.
- The facility will focus on manufacturing airborne maritime radar systems, fire control radar systems, and other advanced radar solutions for land and airborne defence applications.
- The investment commitment amounts to Rs 850 crore, with expected direct employment generation of around 165 skilled jobs.
- Tamil Nadu government will provide infrastructural support, regulatory facilitation, and incentives under the state’s Industrial Policy 2021 and Aerospace & Defence Policy 2022.
- The Hosur facility will be a key part of Tamil Nadu’s burgeoning defence industrial corridor, enhancing local manufacturing ecosystems and technology capabilities.
- The agreement was signed in the presence of Tamil Nadu Chief Minister M.K. Stalin, who emphasized the state’s vision to position Hosur as a global industrial and technological hub.
- The MoU aligns with Tamil Nadu’s strategy to attract investments across sunrise sectors like defence, aerospace, renewable energy, and advanced manufacturing.
Strategic Importance of the Hosur Facility
The new defence electronics manufacturing unit represents a significant augmentation of India’s self-reliance in defence technologies. By integrating advanced radar systems manufacturing locally, DCX Systems and its partners aim to reduce import dependency and offer cutting-edge solutions tailored to India’s strategic requirements.
The location near Hosur is strategic, given the region’s rapidly developing industrial infrastructure, proximity to defense establishments, ease of connectivity, and availability of skilled workforce. The facility’s operations will encompass high-precision manufacturing of radar systems critical for surveillance, threat detection, and command and control functions in defense operations.
Government Support and Facilitation
The Government of Tamil Nadu’s nodal agency Guidance will extend critical support covering infrastructure development, facilitation of permissions, clearances, registrations, and assistance in accessing fiscal incentives and subsidies as per applicable policies.
Chief Minister M.K. Stalin highlighted the state’s rapid industrial growth, underscoring an 11.19% economic expansion and underscoring Hosur’s transformation into a favored destination for global investors. He announced the launch of the ‘Hosur Knowledge Corridor’ initiative aimed at fostering a cluster for Global Capability Centers, IT companies, and educational institutions to complement industrial strengths.
Economic and Employment Impact
The Rs 850 crore investment into the defence electronics sector is expected to generate 165 direct high-skill jobs initially, with potential for further indirect employment creation as the supply chain and ancillary industries develop around the facility. This will invigorate the local economy and supply chain ecosystems.
The presence of a globally reputed technology partner like IAI-ELTA Systems ensures the transfer of advanced manufacturing know-how and aligns with India’s strategic policy to upgrade defence manufacturing capabilities.
Broader Context of Investment and Development in Tamil Nadu
The MoU with DCX Systems is part of a larger wave of investments signed at the TN Rising Conclave, where 92 MoUs worth over Rs 24,307 crore were inked across sectors including renewable energy, footwear, aerospace, and electronics.
Other major projects announced concurrently include a Rs 5,000 crore solar cell manufacturing unit by Zetwerk and a Rs 200 crore aerospace expansion by International Aerospace Manufacturing Pvt Ltd in Hosur’s ELCOT Special Economic Zone.
The state government’s concerted efforts to support business, infrastructure, innovation hubs, and regulatory ease are rapidly positioning Tamil Nadu as a premier industrial powerhouse.
Conclusion
DCX Systems Ltd’s MoU with Tamil Nadu to set up a high-technology defence electronics facility in Hosur is a landmark step toward advancing India’s indigenous defence manufacturing ecosystem. With strong government backing, strategic partnerships with global leaders, and cutting-edge technologies, this project promises to elevate Tamil Nadu’s industrial profile while contributing to the nation’s self-reliance and security imperatives.
Sources: BusinessUpturn, Business Standard, UNI India, Industrial Economist, The Hindu Businessline.
