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Indian defense firms secure global rankings amidst rising arms demand
Industry News- Dec 08,23
The Stockholm International Peace Research Institute (SIPRI) recently published a report, disclosing that HAL, BEL, and MDL, all Indian defense PSUs, secured positions among the top 100 arms-producing companies.
In 2022, the top 100 armament companies globally achieved $597 billion in sales of arms and military services, witnessing a substantial surge in demand fuelled by Russia's invasion of Ukraine and escalating geopolitical tensions.
The Stockholm International Peace Research Institute (SIPRI) recently published a report, disclosing that Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Mazagon Docks (MDL), all Indian defense public sector undertakings (PSUs), secured positions among the top 100 arms-producing companies. The list was predominantly dominated by companies from the United States and China.
Despite the noteworthy increase in global arms demand, SIPRI highlighted a 3.5% decline in the revenues of the top 100 companies in real terms compared to 2021, attributed to production lagging behind heightened demand.
In the rankings, HAL secured the 41st position with $3.4 billion in arms sales, BEL stood at 63rd with $1.9 billion, and MDL was positioned 89th with $1 billion. These rankings reflect substantial orders placed by the Indian armed forces, totalling 14 lakhs. However, the combined sales of these three Indian companies accounted for only 1% of the global arms sales of $597 billion in the past year.
Their revenues are expected to experience a significant increase soon, as the Ministry of Defence granted initial approval on November 30 to procure an additional batch of 97 Tejas light combat aircraft and around 150 Prachand helicopters, along with other equipment, in a mega deal worth Rs 2.23 lakh crore. This move aims to enhance the overall combat capability of the armed forces.
The official statement from the Defence Acquisition Council stated, "Defence Acquisition Council approves capital acquisition proposals worth Rs 2.23 lakh crore to enhance the operational capabilities of the Armed Forces, with 98 per cent to be sourced from domestic industries, providing a major boost to 'Aatmanirbharta' in defense." The acquisition includes Light Combat Helicopters, Light Combat Aircraft Mk 1A from HAL, and Medium Range Anti-Ship Missiles for the surface platform of the Indian Navy. Additionally, the acquisition of Towed Gun System was approved to replace the Indian Field Gun.
Hindustan Aeronautics Limited (HAL) is the domestic supplier of Tejas and Prachanda aircraft.
Meanwhile, shares of HAL closed 1.65 per cent higher at Rs 2,382.30, after soaring over 4 per cent intra-day, while Cochin Shipyard ended close to 4 per cent higher at Rs 1,206 apiece on BSE.
This development coincides with a crucial meeting scheduled to be held by Defence Minister Rajnath Singh. The project, estimated to cost around Rs 55,000 crore, aims to supplement the existing fleet of 83 Tejas jets.
Source: Firstpost
SIPRI report
Ministry of Defence
Tejas aircraft
Prachand helicopters
Hindustan Aeronautics Limited (HAL)
Bharat Electronics (BEL)
Mazagon Docks (MDL)
Rajnath Singh
Light Combat Helicopters
Light Combat Aircraft Mk 1A
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