Indian Defence Manufacturing Companies: A profound transformation is taking place in the Indian defense sector. It used to be solely focused on defending its borders, but thanks to a strong desire for independence and a booming export market, it is now quickly evolving into a high-tech powerhouse.
Since the recent developments in defence sector India no longer needs to rely on imports. Many defense industries are already setting examples of how India can lead itself and work on the principle of “Atmanirbhar Bharat.”
India’s defense exports, which hit a record high of Rs 210.8 billion (bn) in FY24, are a good example. More than just growth, this rise means that things are getting more complicated. The sector is now a global force that sends its knowledge to more than 85 countries, so it’s not just a shield.
A network of various businesses is what is driving this change. This group of companies, from huge aerospace companies making cutting-edge combat vehicles to manufacturers carefully crafting the core of military hardware, is what keeps India safe.
The Defense Sector’s Recent Growth
The Defence Research and Development Organisation (DRDO) was allocated US$ 2.9 billion in the Interim Budget for 2024–25, along with a US$ 12 billion long-term corpus for Deep Tech to foster innovation in homegrown defence technologies.
There are other reasons behind this rise in defense spending. The ongoing standoff with China in Ladakh and the apparent underperformance of Russian weaponry in Ukraine are examples of how geopolitical concerns have played a significant role.
The situation in Ukraine revealed three crucial lessons for India:
- The availability of foreign equipment can be limited in times of crisis, as Russia’s reliance on components from uncooperative suppliers demonstrates.
- India’s armed forces use a lot of Russian equipment, however, it performs poorly when compared to Western systems.
- Western equipment is expensive and difficult to swiftly mass-produce, which causes shipments to Ukraine to be delayed.
For the manufacture of defense equipment, the Indian government is emphasizing “Make in India.”
India, which ranks fourth in the world for defense spending as of 2022, has set a lofty goal to export defense goods worth Rs 500 billion, or almost US$ 6 billion, year by 2028–2029.
Let’s now examine the leading Indian defense manufacturing companies.
Top 15 Indian Defence Manufacturing Companies
1. Hindustan Aeronautics
An Indian aerospace and defence corporation in the public sector is called Hindustan Aeronautics.
HAL is one of the biggest and oldest aerospace and defense businesses in the world, having been founded on December 23, 1940.
For the military and commercial markets, the business develops, plans, builds, and delivers aircraft, helicopters, avionics, and communications equipment.
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HAL provides the following services for airplanes. HAL’s helicopter programs have produced the Dhruv Advanced Light Helicopter (ALH), a multipurpose aircraft used for medical evacuation, transport, and reconnaissance in the military.
HAL also manufactures the Light Combat Helicopter (LCH), which is outfitted with cutting-edge equipment and systems for high-altitude combat and is intended to serve the Indian Army and Air Force in difficult terrain.
The business also produces the Light Utility Helicopter (LUH), a cutting-edge, maneuverable platform for a variety of utility duties that is meant to replace the aging Chetak and Cheetah helicopters in the Indian armed services.
Additionally, it creates and incorporates cutting-edge avionics equipment to improve the functionality and endurance of its aircraft and helicopters, such as radar, communication, navigation, and electronic warfare systems.
HAL either provides the majority of the defense forces’ fleet or services and supports over 80% of it.
With 20 production divisions, 11 research and design centers, and over 4,100 aircraft and 5,000 engines produced, the corporation has also overhauled 11,000 aircraft and 33,000 engines nationwide.
By utilizing its array of domestic products, it is actively seeking exports, emphasizing the capacities and security of platforms such as LCA Tejas.
Argentina, Nigeria, Egypt, and the Philippines are among the nations it is targeting for exports of its cutting-edge light helicopter (ALH) and light combat aircraft (LCA) Mk-1A.
The business was just awarded a contract to deliver two Hindustan-228 commuter planes.
2. Mazagon Dock Shipbuilders
Mazagon facility began as a tiny shipbuilding facility and has grown to become India’s largest manufacturer of warships.
The Indian government owns the majority of the enterprise, which produces everything from cargo ships to destroyers, frigates, corvettes, submarines, and offshore platforms. It is the biggest shipbuilder in the nation in terms of order book and income.
Mazagon Dock Shipbuilders is a unique enterprise in India that specializes in producing destroyers and conventional submarines for the Indian Navy.
The manufacturing of the Indian Navy’s most ambitious projects, such as the destroyers and submarines of the Visakhapatnam and Kolkata classes and the Scorpene class, has fallen to it.
The corporation offers a wide range of products, including ferries, transport vessels, and naval ships and submarines. At the moment, the business has a sizable library of designs for a range of products for both domestic and international clients.
Since 1960, MDL has built 801 ships, including seven submarines, advanced destroyers, battleships, and missile boats.
After the first submarine was introduced in 2017, it is presently waiting for the Indian government to approve a Rs 200 billion submarine project that will allow for the construction of three more submarines.
The Navy needs about 175 ships for its fleet, including several frigates, next-generation corvettes, and destroyers.
Despite its experience, Mazagon Dock may not always be given the projects. For new projects, it must contend with the privately held L&T and other government shipyards.
The Indian Navy has picked Mazagon Dock and L&T for the P75I project, which entails producing six additional submarines equipped with lithium-ion batteries and an air-independent propulsion system (AIP).
In addition, the Ministry of Defence is currently in the process of authorising the purchase of three more Scorpene-class submarines following the 2024 general elections.
However, Mazagon Dock is currently very busy. Project 17 Alpha has already seen the company produce four frigates, the first of which will be delivered this year together with the final Scorpene submarine.
It intends to build a greenfield shipyard in Navi Mumbai in the future, complete with workshops, a wet basin, a ship lift, and ship repair capabilities.
3. Bharat Electronics
A Navratna defense PSU is called Bharat Electronics (BEL).
The business, which was founded in 1954 in collaboration with CSF France, is currently a government aerospace and defense enterprise. The corporation is 51.1% owned by the Indian government.
In the realm of defense electronics, it is a leader. The business is the leading provider of electronic warfare, radar, and communication equipment to the Indian military.
About 87% of the company’s revenue comes from the Indian defense industry, which it depends largely on.
It produces vital parts for the military’s use in electronic warfare systems, missiles, radars, aircraft sensors, sonars, and more.
Arms and ammunition, missiles and seekers, network and cyber security, and unmanned systems are examples of recent diversifications.
Several Indian-made defense assets, including fighter planes, warships, submarines, and communication networks, are equipped with BEL’s electronics. There is no substitute for Bharat Electronics when it comes to India’s vital defense requirements.
One of the main gainers from the government’s decision to impose an import embargo on defense goods as part of Aatmanirbhar Bharat is Bharat Electronics.
The whole order book of BEL as of April 1, 2024, is estimated to be worth Rs 760 billion, giving revenue visibility for the ensuing few years. During the 2023–24 fiscal year, BEL obtained orders totaling around Rs 350 billion.
Furthermore, the government’s increasing capital budget allocation and ongoing commitment on implementing reforms to boost India’s capacity to manufacture defense products and progressively lower imports have contributed to BEL’s steady flow of new orders.
4. IdeaForge Technology
One well-known brand in the drone sector is IdeaForge. The company is using cutting-edge unmanned aerial vehicles (UAVs) to support India’s defense industry.
Drones from the company are utilized for border security, situational awareness during military operations, and monitoring of sensitive locations. IdeaForge’s unmanned aerial vehicles (UAVs) aid in danger detection and tracking, as well as improved defense installation security.
The company makes lightweight, portable UAVs. They can be swiftly deployed, even from cramped areas. After that, these drones will thoroughly map and monitor the region.
These UAVs have extremely low noise signatures and are constructed to military specifications. They are able to survey important locations safely and virtually unobserved from a comfortable height without waking up adversaries.
This facilitates real-time reconnaissance in dangerous areas or provides the all-clear for a planned transportation route.
IdeaForge provides UAVs that improve the operational capabilities of the Indian Army, Navy, and paramilitary groups with close collaboration.
Additionally, the corporation develops and tests novel UAV technologies in collaboration with the Defence Research and Development Organisation (DRDO).
IdeaForge has teamed up with a number of tech companies to include cutting-edge capabilities, such improved communication systems and AI-driven analytics, into their drones. IdeaForge maintains its leadership position in UAV technology and broadens its market penetration through partnerships with international defense corporations.
The company wants to increase its presence in the defense industry by bringing in more advanced UAV types.
5. Premier Explosives
Premier Explosives is a company that produces detonators and industrial explosives.
Producing propellants for tactical and strategic missiles like Astra, Akash, LRSAM, Agni, and Veda, the company caters to the defense industry.
The company is in charge of running and maintaining the solid fuel complex at DRDO and Sriharikota Center’s propellant factories.
It serves a wide range of clients, including DRDO, Bharat Dynamics, Coal India, ISRO, Bharat Electricals, and Advanced Systems Laboratory, through a broad product portfolio in which it holds a monopoly.
In addition to exporting to several nations, including Israel, Greece, Jordan, Nepal, Turkey, Indonesia, Thailand, and the Philippines, the company has a significant home market.
Despite being a small participant in the market compared to its rivals, the company has left its impact. It is the industry leader in India for producing explosives and using local technologies to blow fuses.
In addition, it is the first private enterprise producing propellants for Indian missile projects. The business has access to cutting-edge technologies since it is a part of the Missile Technologies Control Group (MTCR), India.
It has conducted high-energy material research in partnership with institutions including BITS Pilani, Gulbarga University, and IIT Madras.
It has made R&D investments and is creating new goods for the Indian Air Force, like air-glide bombs and 70 mm rockets. These are the actions that the company is taking moving forward to improve its product line.
6. Bharat Dynamics
Bharat Dynamics began by producing missiles for original equipment manufacturers and closely collaborating with DRDO. Gradually, the company expanded into R&D and engineering roles to provide the Indian armed forces with a strategic advantage in present and future conflicts.
Producing allied equipment and guided missile systems for the Indian Armed Forces, Bharat Dynamics is a PSU under the Ministry of Defence.
Since the company’s founding, BDL has collaborated with foreign OEMs and the DRDO to produce and supply the Indian Armed Forces with a range of allied equipment, including missiles.
To deploy its missile systems, the corporation also offers its expertise in the development and production of sophisticated launchers.
In the upcoming quarters, the business anticipates receiving new orders valued at Rs 50 billion.
Furthermore, the corporation stands to gain from proposals worth Rs 845.6 billion that were accepted by the Defence Acquisition Council (DAC) to improve the operational capabilities of the Indian armed forces.
In actuality, the company’s success has been largely attributed to government initiatives that support homegrown defense equipment manufacturing.
With its three manufacturing facilities, the company is prepared to explore new manufacturing opportunities in the future that will encompass a variety of weapon systems.
7. High Energy Batteries
The company High Energy Batteries (India) Limited manufactures commercial batteries for automotive and standby VRLA applications in addition to high-tech batteries for the Army, Navy, Air Force, and launch vehicles.
The company produces nickel cadmium and high-value silver zinc batteries. The Army, Navy, and Air Forces are the company’s principal clients. The company provides batteries for use in a variety of defense applications, including helicopter batteries, torpedo batteries, aircraft batteries, and missile batteries.
The Indian Air Force and Indian Navy have used the company’s produced nickel cadmium batteries for their Jaguar, Mirage, Sea King, Sukhoi, Kiran MKI, Kiran MKII, AN32, Sea Harrier, and other aircraft.
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The foundation of the business’s income is a strategic alliance with the military ministry of the Indian government. Their zinc-silver batteries are essential for several defense requirements.
When creating these batteries for upcoming defense uses, the business intends to give priority to cutting-edge technologies.
8. L&T
Long before the defense industry was made available to the private sector in 2001, L&T began its journey in the mid-1980s.
The company has implemented Industry 4.0 in all of its engineering and manufacturing facilities in India, making it one of the pioneers in this area.
The latest K9 Vajra-T initiative, in which the Army received 100 K9s in accordance with a defense deal for Rs 45 billion, is an example of its application of industry 4.0 and automation capabilities.
L&T Defence, a subsidiary, contributes only a minor portion of the group’s total revenue, accounting for 2-3% of the projects and manufacturing segment.
However, it is one of the main participants in India’s private defense industry, offering a wide range of products and services from land combat vehicles, radar systems, and PSLV rockets to ships and submarines. The corporation presently has multiple contracts and projects under its belt, the light tank being only one of them.
One of the few private businesses in the world with the ability to manufacture specialized submarines is L&T Defence.
The corporation has played a significant role in the production of India’s first nuclear-powered ballistic missile submarine (SSBN), the Arihant class, which is essential to preserving the nation’s strategic nuclear deterrence at sea.
The company has also finalized a deal for the supply of 61 flights of an indigenously built close-in weapon system to the Indian Air Force for the protection of critical positions and assets. In addition, the company is carrying out a contract for two multipurpose vessel ships.
9. Astra Microwave
For its clients, the firm designs, develops, and manufactures essential subsystems for constructing a range of aerial, naval, and ground-based systems. The company manufactures electronic warfare, radar electronics, and strategic electronics and telemetry systems.
With 55% of the total revenue in FY23, this vertical continues to be the largest revenue-generating one.
There are two primary revenue streams for the company:
DRDO Contracts: AMPL creates parts for defense hardware that DRDO designs. Following military clearance, Defense PSUs receive technology from DRDO and place orders with companies such as Astra Microwave for the necessary parts.
Exports: Foreign vendors are required to obtain at least 30% of major orders from Indian manufacturers as a result of the defense offset policy. By doing this, it guarantees that it will get large export orders. The business also provides parts to the Indian Space Research Organization (ISRO).
Recently, a collaboration agreement was signed between Astra Microwave and Teledyne e2v HiRel Electronics to supply semiconductor services to the aerospace, defense, and high-reliability electronics markets.
A contract to supply, install, test, and commission a Precision Approach Radar (PAR) system for Hindustan Aeronautics was previously awarded to the company.
To improve detection and tracking capabilities, the company intends to concentrate on Active Electronically Scanned Array (AESA) radars in the future.
10. Cochin Shipyard
The government-owned Cochin Shipyard is the largest in India’s public sector by capacity. It is positioned to take advantage of the possibilities in India’s defense manufacturing sector as a unique player.
Despite being recognized as a commercial shipyard, CSL’s primary source of income is from the construction and maintenance of defense ships. They are a reliable partner for the Indian Navy’s shipbuilding requirements because of their experience and knowledge.
Being a unique player in defense space, the business has built a wide variety of warships, including destroyers, corvettes, anti-submarine warfare (ASW) shallow water crafts, and auxiliary vessels.
The Indian Navy, Indian Coast Guard, Shipping Corporation of India, and National Petroleum Construction Company (Abu Dhabi) are a few of its clients.
A European customer has placed an order with Cochin Shipyard to design and construct one Hybrid Service Operation Vessel (SOV) with the possibility of building two more.
The construction of a new dry dock and a 600-ton gantry crane will improve its future shipbuilding and repair capabilities.
To handle increasingly complex ship repair orders and increase its ship repairing revenue, it is expanding the International Ship Repair Facility (ISRF) in Cochin by adding a ship lifting facility.
To construct ships and other boats, the business is also establishing a modern shipbuilding facility in West Bengal.
Through its CRUISE 2030 plan, the company intends to leverage emerging technologies, including hybrid or battery-powered vessels and vessels that run on alternative fuels, with a focus on the defense industry, coastal areas, and small vessel segments.
It recently bought Temba Shipyards, a company that specializes in building deep-sea fishing vessels, as part of this objective.
11. Paras Defence & Space Technologies
The company specializes on technology required for quantum communication, drones, electronic warfare, naval systems, rockets and missiles, and space research, among other applications.
DRDO, ISRO, defense shipyards, Hindustan Aeronautics, Larsen & Toubro, and the Tata group are now some of Paras Defence’s principal clients.
The company is one of the few in India that specializes in the production of high-end optronics and electronics for space and defense applications.
The electronics division of Paras Defence provides the defense engineering products and solutions listed below.
In the Indian defense sector, Paras Defence has been expanding as a sub-system provider, and it is a part of several significant aerospace and defense projects that the Indian government has commissioned.
The company has recently secured contracts to equip the Indian Navy with submarine optronic periscopes and to supply the entire glass avionic suite for the Saras MK2 in March 2023.
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In addition, Paras Defence offers a range of defense systems and parts for armoured vehicles, electromagnetic shielding, electronic warfare (EW) and surveillance, naval, and space goods. The company’s diverse skill set makes it possible for it to advance up the value chain and enter markets that provide comprehensive products and solutions in the future.
It offers products that go beyond standard defense gear, such as anti-drone systems, radio frequency (RF) and microwave components, and drones. The defence engineering division generates 70% of its total income.
The company’s concentration on research and development (R&D) is its main strength. It is capable of designing, developing, and producing turnkey defense sector solutions domestically.
In addition, the business established Mechtech Thermal as a subsidiary in 2024 to design, develop, and validating thermal solutions for the space, defense, and aviation industries.
12. Garden Reach Shipbuilders
Another top shipbuilding company that serves the requirements of the Indian Coast Guard and Navy is Garden Reach Shipbuilders and Engineers.
The company is proud to be the first shipyard in India to export warships, and it has a varied portfolio. It has effectively supplied the Indian Navy and Indian Coast Guard with a total of 100 warships.
The Defence Research and Development Organisation (DRDO) announced last week that the company was the lowest bidder (L1) for the construction of a research vessel for a consideration of Rs 5 billion.
Furthermore, it has signed a contract to purchase a single trailing suction hopper dredger with the Bangladesh Inland Water Transport Authority (BIWTA).
A purchase order for the production and delivery of a 1 KW HF system was also bagged.
A vital function of the high frequency (HF) system is to facilitate maritime communications. It makes long-distance, flawless, highly secure communications possible via satellite and the HF medium for net-centric defense force operations on land and at sea.
With the launch of Next-Generation Offshore Patrol Vessels (NGOPVs) and delivery for naval projects, the company looks forward to a bright future.
13. Taneja Aerospace
This small-cap defense firm offers services relating to airfield maintenance, repair, and operations (MRO) and related services. It also manufactures a variety of parts and components for the aviation industry.
The company produces aerostructures, which are crucial components for military aircraft airframes. Major Indian defense companies including Hindustan Aeronautics (HAL), the Indian Air Force, and the Indian Navy are supplied with these parts by them.
The company specializes in adapting aircraft and helicopters used in defense for certain military uses. This could entail strengthening operating performance for diverse terrains, enhancing communication capabilities, or adding weapons systems.
The company intends to produce parts for helicopters of the next generation in the future.
14. Bharat Forge
One of the main producers of vital parts for several defence platforms is Bharat Forge. The company manufactures structural components, engine parts, and airframe components—all vital components for military aircraft.
It also provides essential parts for armored personnel carriers (APCs), tanks, and other fighting vehicles.
In the Pune district’s Jejuri, Bharat Forge is now establishing a new facility that it hopes to open in less than a month.
A production line for vehicles like the M4, which Bharat Forge exports and supplies domestically to the Indian Army, would be housed in this complex. Tanks and other tracked vehicles will be the main focus of another production line. The business is working on a small tank that weighs less than 25 tons and futuristic infantry combat vehicles (FICVs).
Eighty percent of the company’s substantial Rs 50 billion order book is intended for export. Bharat Forge has received export orders totaling $5–6 billion USD over the last six months. The company’s defense-related revenue last year was Rs 14 bn, and it is anticipated to expand by more than 50% in FY25.
With an eye toward the future, Bharat Forge is prepared to produce main battle tanks to satisfy the Indian Army’s demands.
15. Data Patterns
The company focuses on indigenous development while designing and producing electronic systems and solutions. The company’s wide range of products serves all land, sea, air, and space defense and aerospace systems.
Data Patterns maintains a diverse order book with high-profile clients and claims to have 100% in-house development and production capabilities.
The company has provided parts for important projects as the BrahMos missile, Light Utility Helicopter, and LCA-Tejas.
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In the field of electronic warfare, Data Patterns is a major player, developing devices that interfere with or manipulate adversary radar and electronic communications.
They produce a range of radars that are essential for spotting and monitoring ships, aircraft, and missiles as well as intelligence collection systems (SIGINT, COMINT, and ELINT). Coastal surveillance radar, weather radar, and surveillance radar are some of their radar offerings.
With backing from programs like Aatmanirbhar Bharat, strong intergenerational relationships, and the military modernization plan, the company operates in a variety of defense areas.
The aforementioned activities are expected to enhance Data Patterns’ performance within the dynamic military market.
In the future, Data Patterns anticipates obtaining orders from the defense industry valued at Rs 10 billion in FY25. The organization is moving toward constructing entire systems, even though the Defence Research and Development Organization (DRDO) provides a large amount of its current work. The Ministry of Defense (MoD) will do more direct business as a result of this change.
Conclusion
Buying defence stocks is a very attractive option for several reasons. First, ongoing geopolitical conflicts around the world and a rising emphasis on national security guarantee a steady demand for defense goods and services.
Defence industries enjoy a consistent source of income as governments across the globe continue to devote substantial chunks of their budgets to defence spending.
By 2024–2025, India wants to export defense goods worth Rs 350 billion. The push for higher exports coincides with a strong focus on the indigenous development of weapons and systems.
These include putting in place progressive prohibitions on the import of weapons, setting aside money specifically for the purchase of military hardware manufactured in the country, raising foreign direct investment from 49% to 74%, and facilitating economic transactions. India hopes to reach a defense manufacturing turnover of Rs 1.8 trillion (tn) by 2024–2025.
