In the coming few years, India’s defence expenditure on modernization of its armed forces might touch $130 billion. This massive investment is the outcome of the Govt. of India’s target to achieve self-reliance in production of military equipment.
Private manufacturers can now take part in such production activities. This would provide a fillip to indigenous manufacturers and also allow foreign OEMs to forge strategic alliances with Indian firms. In 2018, private sector turnover in India’s defence and aerospace domain was more than $2 billion. The government is also targeting to export to $5 billion worth of defense equipment by 2024. India spends almost 2.3% of its GDP on defence.
There are quite a few companies engaged in the production of defence equipment in India. Their expertise is linked with the efficacy of our defence forces. Below, let’s take a look at the top 10 such companies.
Bharat Dynamics
Bharat Dynamics Ltd is the biggest Defence Company in India that comes under Ministry of Defence, Govt. of India. It started five decades ago as a manufacturing facility for guided missiles and related equipment. The company operates from 3 manufacturing plants across the state of Andhra Pradesh. It has manufactured some leading Anti-Tank Guided Missiles (ATGMs) and is on its way to build surface-to-air missiles, air-to-air missiles, torpedoes, etc.
- Revenue(Rs Cr.): 3095
- Market Cap (Rs Cr.): 6,292.96
- Book Value (Rs): 142.23
- Face Value (RS): 10.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: 534.90
- MAR 19: 422.59
- MAR 18: 528.15
- MAR 17: 524.06
Bharat Electronics
The PSU Bharat Electronics Ltd (BEL) was born in 1954, as part of a mission to strengthen the indigenous industries. It began by manufacturing basic communications equipment. Today, it manufactures a range of the best-level items in the domains of radars, defence communication, weapon systems, electronic warfare, tank electronics, homeland security. BEL is also present in the civilian arena, manufacturing Electronic Voting Machines, solar-powered traffic lights, Tablet PCs, etc. They have 8 manufacturing setup across the country.
- Revenue(Rs Cr.): 12,500
- Market Cap (Rs Cr.): 28,008.64
- Book Value (Rs): 40.44
- Face Value (RS): 1.00
- Turnover (Rs. In Lakhs): 7,031.23
Profit and Loss:
- MAR 20: 1,792.63
- MAR 19: 1,848.03
- MAR 18: 1,407.25
- MAR 17: 1,497.03
Bharat Earth Movers
The PSU Bharat Earth Movers Ltd (BEML) came up in 1964 to build rail coaches & mining equipment. Over the years, the company has diversified into multiple business ventures including defence and rail & metro. Under the defence vertical, the primary products it manufactures are tank transportation trailers, mine ploughs, recovery vehicles, bridge systems, aircraft towing tractors, and aircraft weapon loading trolley. BEML’s products are exported to more than 60 countries. The company has 9 manufacturing facilities in total.
- Revenue(Rs Cr.): 589.10
- Market Cap (Rs Cr.): 3,059.41
- Book Value (Rs): 541.97
- Face Value (RS): 10.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: 63.68
- MAR 19: 63.16
- MAR 18: 129.68
- MAR 17: 84.78
Defence Research and Development Organisation
DRDO is the 4th largest defence equipment manufacturing company in India Since inception, it has been on a mission to achieve complete self-reliance in manufacturing of defence equipment. This has led it to produce such advanced missiles like Agni & Prithvi, light combat aircraft like Tejas, air defence system Akash, and a lot of radars and electronic warfare systems. There are more than 50 laboratories that are involved in producing the latest defence technology equipment in the areas of combat vehicles, armaments, electronics, naval systems, instrumentation, etc.
- Revenue(Rs Cr.): 279305
- Market Cap (Rs Cr.): N/A
- Book Value (Rs): N/A
- Face Value (RS): N/A
- Turnover (Rs. In Cr. ): 250
Profit and Loss:
- MAR 20: N/A
- MAR 19: N/A
- MAR 18: N/A
- MAR 17: N/A
Garden Reach Shipbuilders & Engineers
Garden Reach Shipbuilders & Engineers (GRSE) is primarily engaged in manufacturing state of the art vessels for the Indian Navy & the Indian Coast Guard. It also manufactures steel bridges, marine pumps, and deck machinery items. The company was incorporated in 1934 & in 1961, it manufactured the nation’s first indigenous warship – Ajay. Since then, the company has built more than 750 vessels like missile & anti-submarine corvettes, patrol vessels, frigates, survey vessels, hovercrafts, and much more. The company is technologically-equipped to manufacture the latest warships for the Indian Navy.
- Revenue(Rs Cr.): 439
- Market Cap (Rs Cr.): 2,279.58
- Book Value (Rs): 90.81
- Face Value (RS): 10.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: 163.48
- MAR 19: 109.94
- MAR 18: 92.40
- MAR 17: 108.03
Goa Shipyard
- Revenue(Rs Cr.): 848
- Market Cap (Rs Cr.): 2600
- Book Value (Rs): N/A
- Face Value (RS): 5.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss: N/A
- MAR 16-17: 11,741
- MAR 15-16: 6,228
- MAR 14-15: 7,824
- MAR 13-14: 6,109
Hindustan Aeronautics Limited
The history of Hindustan Aeronautics Limited (HAL) and the airlines sector almost go hand in hand. The company was incorporated in 1940 with the aim of manufacturing indigenous aircraft. From 1951, HAL has been under the ownership of the Ministry of Defence, Govt. of India. From 1963, HAL began to manufacture the iconic Mig-21 fighter planes. It has produced 31 types of aircraft so far. Some of the latest aircraft under production currently are:
- SU-30 MKI,
- LCA & DO-228 aircraft
- ALH-Dhruv,
- Chetak, Cheetal &
- LCH Helicopters.
The Jaguar, Mirage, and some existing aircraft are undergoing extensive overhaul.
- Revenue(Rs Cr.): 21,100
- Market Cap (Rs Cr.): 28,787.42
- Book Value (Rs): 394.45
- Face Value (RS): 10.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: 2,865.98
- MAR 19: 2,327.63
- MAR 18: 2,059.37
- MAR 17: 2,608.15
Mazagon Dock Limited
The ISO 9001:2008 Mazagaon Dock Ltd (MDL) is one of India’s top shipbuilding yards. The port is in existence since 1774 and was incorporated as a private ltd company in 1934. The Indian government acquired it in 1960 and turned it into a leading warship manufacturing centers for the Indian Navy and also exploration ships & related structures for Bombay High. Using sophisticated and high-end technology, MDL has constructed almost 800 vessels till now of which 25 have been warships (including destroyers, submarines, and missile boats). MDL has also built a large number of passenger ships, supply vessels, tugs, dredgers, fishing trawlers, water tankers, etc.
- Revenue(Rs Cr.): 5,289.53
- Market Cap (Rs Cr.): 3,734.29
- Book Value (Rs): 128.46
- Face Value (RS): 10.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: 415.02
- MAR 19: 519.40
- MAR 18: 439.80
- MAR 17: 533.49
Ordnance Factory Board
Ordnance Factory Board (OFB) comes with a legacy of more 200 years of producing defence equipment. OFB is engaged in R&D, production, testing, and marketing of a wide range of defence equipment for the entire defence forces. Its product range includes various short and long-range weapons, ammunitions & explosives, military & armored vehicles, parachutes, support equipment, etc.
- Revenue(Rs Cr.): 50.58
- Market Cap (Rs Cr.): 231.52
- Book Value (Rs): N/A
- Face Value (RS): N/A
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: N/A
- MAR 19: N/A
- MAR 18: N/A
- MAR 17: N/A
Cochin Shipyard Limited
Incorporated in 1972 as a fully-owned central government company, Cochin Shipyard Limited (CSL) is among the top companies in the Indian shipbuilding sector. CSL has the capacity to construct and repair even the largest ocean-going vessels. It can construct ships up to 110,000 DWT and conduct repairs on ships of sizes up to 125,000 DWT. The company has also constructed ships for several international customers.
- Revenue(Rs Cr.): 3669.99
- Market Cap (Rs Cr.): 4,828.85
- Book Value (Rs): 283.70
- Face Value (RS): 10.00
- Turnover (Rs. In Lakhs): N/A
Profit and Loss:
- MAR 20: 632.01
- MAR 19: 477.79
- MAR 18: 396.26
List of 10 Best Defence Companies in India
| Sl. No. | Company | Establishment | Head office | No of Employees | Website |
| 1 | Bharat Dynamics | 1970 | Hyderabad | 3,030 | https://bdl-india.in/ |
| 2 | Bharat Electronics | 1954 | Bengaluru | 9,279 | http://www.bel-india.in/ |
| 3 | Bharat Earth Movers | 1964 | Bengaluru | 7,185 | https://www.bemlindia.in/ |
| 4 | Defence Research and Development Organisation | 1958 | New Delhi | 30,000 (5,000 scientists) | https://www.drdo.gov.in/ |
| 5 | Garden Reach Shipbuilders & Engineers | 1884 | Kolkata | 2,100 | http://grse.in/ |
| 6 | Goa Shipyard | 1957 | Goa | 1,472 | https://goashipyard.in/ |
| 7 | Hindustan Aeronautics Limited | 1940 | Bengaluru | 28,345 | https://hal-india.co.in |
| 8 | Mazagon Dock Limited | 1934 | Mumbai | 8,790 | https://mazagondock.in/ |
| 9 | Ordnance Factory Board | 1712 | Kolkata | 80,000 | https://ofb.gov.in/ |
| 10 | Cochin Shipyard Limited | 1972 | Cochin | 1,744 | https://cochinshipyard.com/
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