Updated March 2nd, 2024 at 12:18 IST

5 major defence firms bagging Rs 39,000 crore contracts to boost Aatmnirbharta

Larsen & Toubro Limited, Hindustan Aeronautics Limited, and BrahMos Aerospace Private Limited have bagged the MoD contracts.

Reported by: Saqib Malik
Aatmnirbharta in Defence | Image: Aatmnirbharta in Defence
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MoD Critical Acquisitions: The Ministry of Defense (MoD) on Friday signed five major contracts worth Rs 39,125.39 crore with the country’s major defence firms. The defence firms that have bagged MoD contracts include Hindustan Aeronautics Limited, Larsen & Toubro Limited, and BrahMos Aerospace Private Limited (BAPL). 

In an exclusive interview with Republic Business, Rajinder Singh Bhatia, President, Society of Indian Defence Manufacturers (SIDM), the apex body of India's defence industry, said companies in India are increasingly becoming export-oriented, while efforts to foster startups will help the defence production industry. 

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Export-oriented companies

As part of the MoD contracts, Larsen & Toubro (L&T) has clinched substantial contracts from the MoD valued within the "major" category in the range of Rs 5,000 to Rs 10,000 crore.  The shares of L&T rose 5.19 per cent to an intraday high of Rs 3685.35 apiece on the National Stock Exchange (NSE) on Friday, March 1.

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While domestic defence production is the key focus, SIDM President Rajinder Singh Bhatia says most Indian defence firms are now export-oriented. As per Bhatia, Kalyani Group, which is among the top most defence production companies in India, will see its 70 per cent of revenue this year coming from exports. “Growth in exports is largely on the back of indigenously designed and developed products,” said Bhatia, who is Chairman, Defence Business, Kalyani Group. 

L&T bags major contract  

The MoD contracts involve the supply of critical equipment to the Indian Air Force (IAF), aimed at boost its operational capabilities. Under these contracts, L&T is tasked with providing High Power Radars (HPR) and Close-In Weapon Systems (CIWS) to the IAF. 

Bhatia says apart from major defence deals and procurements, fostering startups is need of the hour.  “IDex the defence startup ecosystem system is an excellent vehicle for providing opportunities to startups for the development of breakthrough technologies,” said Bhatia.  “I believe an enhanced startup scheme is in the works. We look forward to that. The technology eco-system along with a vibrant manufacturing ecosystem will help in achieving Atmanirbharata,” said Bhatia. 

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As per Bhatia, an important platform such as US-India initiative on Critical and Emerging Technology (iCET) and India-US Defence Acceleration Ecosystem (INDUS-X)Indus X are providing a great scope for synergy in defence. 

“We are hopeful that many proposals for co-design, co-development, and co-production will be formalised,” said Bhatia, adding that IDex the defence startup ecosystem system is an excellent vehicle for providing opportunities to startups for the development of breakthrough technologies.  “I believe an enhanced scheme for defence startups is in the works. We look forward to that. This technology eco system along with a vibrant manufacturing ecosystem will help in achieving Atmanirbharata,” the SIDM President further said. 

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10X domestic production 

Indian industry has already demonstrated its robust manufacturing capability and there has been a significant increase in the defense production, Bhatia said. “Exports are an important part of defence ecosystem. There has been a manifold increase in defence exports. This is an indication of the coming of age of the Indian defence industry,” added the SIDM President. 

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"Kalyani Group has been at the forefront of the development of Indigenous IP and products. This has given a unique place to the group with a major export focus," said Bhatia.  

“70 per cent of this year's revenue comes from exports on the back of indigenously designed and developed products. Group is fully aligned with the national aim of achieving self-reliance at the earliest,” said Bhatia, who is Chairman, Defence Business, Kalyani Group. 

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Published March 1st, 2024 at 17:55 IST