Indian arms makers in Top 100 log $6.7-bn 2023 revenue, up 6%: Sipri

Hindustan Aeronautics, Bharat Electronics, and Mazagon Dock Shipbuilders - the three Indian firms on Sipri's list of the world's 100 largest arms producers - are all defence public sector undertakings

Combined revenues from sales of arms and military services of the three Indian companies that number among the world's 100 largest arms producers increased to $6.74 billion in 2023, growing 5.8 per cent compared to $6.37 billion in 2022, according to data released on Monday by the Stockholm International Peace Research Institute (Sipri).

 

Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Mazagon Dock Shipbuilders Ltd (MDL) — the three Indian companies on Sipri's list of the 100 largest companies in the industry — are all defence public sector undertakings (DPSUs).

 

Bengaluru-headquartered aerospace and defence company HAL, which ranked 43, saw its arms revenues rise to $3.71 billion in 2023, up 6.9 per cent from $3.47 billion a year ago. There was no change in its rank between the two years. Also headquartered in Bengaluru, aerospace and defence electronics company BEL clocked $1.94 billion in 2023, up 0.5 per cent from $1.93 billion in 2022. However, it saw its rank fall to 67 from 65 a year ago. Mumbai-headquartered shipbuilder MDL saw its arms revenues grow 12.4 per cent to $1.09 billion in 2023 from $0.97 billion in 2022. Its rank also went up to 94 from 96 a year ago. 

 

 

The world's top arms producers have seen their revenues rise on the back of wars and regional tensions, said Sipri's annual report on the revenues of the Top 100 global defence companies. "Revenues from sales of arms and military services by the 100 largest companies in the industry reached $632 billion in 2023, a real-terms increase of 4.2 per cent compared with 2022," noted the institute's media release about the report.

 

The media release said that arms revenue increases were seen in "all regions" of the world, with "particularly sharp rises among companies based in Russia and the Middle East (West Asia)".

 

Sipri explained that arms revenues refer to revenues generated from the sales of military goods and services to military customers domestically and abroad. 

 

Rise in arms revenues likely to continue in 2024

 

Noting that many arms producers ramped up production in 2023 in response to surging demand, the Sipri report revealed that the total arms revenues of the Top 100 companies bounced back after a dip in 2022. "Almost three quarters of companies increased their arms revenues year-on-year. Notably, most of the companies that increased their revenues were in the lower half of the Top 100," said Sipri. 

 

Overall, smaller arms producers proved to be "more efficient" at responding to new demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia, and rearmament programmes elsewhere, noted Sipri. 

 

"There was a marked rise in arms revenues in 2023, and this is likely to continue in 2024. The arms revenues of the Top 100 arms producers still did not fully reflect the scale of demand, and many companies have launched recruitment drives, suggesting they are optimistic about future sales," said Lorenzo Scarazzato, a researcher with the Sipri Military Expenditure and Arms Production Programme, in the media release.

 

US companies still rule the roost

 

Since 2018, the top five companies in the Top 100 have all been based in the United States (US), noted Sipri. The 41 companies in the Top 100 based in the US recorded arms revenues of $317 billion in 2023, which amounted to half the total arms revenues of the Top 100 and was 2.5 per cent more than in 2022, revealed the report.

 

While 30 of these 41 companies increased their arms revenues in 2023, Lockheed Martin and RTX Corporation, the world's largest and second-largest arms producers, respectively, were among those registering a drop, said Sipri. 

 

Chinese arms manufacturers report slower revenue growth

 

At 0.7 per cent, the nine China-based companies in the Top 100 saw their smallest year-on-year percentage increase in arms revenues since 2019, amid a slowing economy, according to Sipri. Their total arms revenues in 2023 reached $103 billion.

 

Chinese arms manufacturers secured the eighth, ninth, and tenth spots among the Top 10 largest firms in the industry.