Swan Defence and Heavy Industries Hits 52-Week High After Deal With US-Based Varex To Make Cargo Scanners

Swan Defence and Heavy Industries (SDHI), formerly known as Reliance Naval and Engineering, has entered into a strategic agreement with US-based Varex Imaging Corporation to manufacture advanced cargo and vehicle inspection systems in India, according to a company press release dated August 4. The shares hit a fresh 52-week high on Monday.

Varex, headquartered in Salt Lake City, Utah, develops linear accelerators and imaging technology. Under the partnership, SDHI will exclusively manufacture Varex’s high-energy imaging systems at its facility in Pipavav, Gujarat. These systems are specifically designed to inspect various types of cargo at land borders and seaports, boosting national security infrastructure.

The collaboration addresses the increasing demand for sophisticated inspection technology by Indian security agencies and directly supports the government's ‘Make in India’ initiative, SDHI mentioned.

The partnership comes amid uncertainties tied to a trade deal between India and the United States. Last week, President Donald Trump imposed a 25% tariff on Indian exports, citing disapproval over the country’s tariffs on goods from the US, which he said were “among the highest in the world”.

A key sticking point was also India’s purchase of defense equipment from Russia, for which Trump threatened additional penalties.

The stock closed 5% higher at ₹337.65, surging a mammoth 793% year-to-date. Remember, Swan Defence and Heavy Industries re-listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in January 2025 after a hiatus of 1.5 years.

Editor’s note: A previous version of this story stated the company’s name as Swan Defence in the headline; the correct name is Swan Defence and Heavy Industries. The error has been corrected.

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