The public and private defence sector companies are seeing a significant boost in their order books as India pushes for local defence manufacturing. According to Nuvama Institutional Equities, the industry is riding a high-growth wave and is entering one of its strongest upcycles yet.
Backed by a Rs 10 lakh crore pipeline across Defence Public Sector Undertakings (DPSUs) and a 15-year defence roadmap, key defence manufacturing programs, such as Advanced Medium Combat Aircraft, P-75 Submarine programme and others, are seeing a pooling of expertise and resources from public sector companies such as Hindustan Aeronautics, Mazagon Dock Shipyard, and private sector companies such as Larsen and Toubro, Tata Advanced Systems and Adani Defence and Aerospace.
Here is a look at some of the major defence projects –
Tejas Mk1A project
In September, the Ministry of Defence placed an order worth Rs 62,730 crore with Hindustan Aeronautics for the manufacture of 97 LCA Tejas Mk1A combat aircraft. While HAL, a public sector company, is the primary contractor in the massive defence project, other parties, public and private companies, are also involved in the project via sub-contracts.
Major private companies that are involved in the project include Larsen and Toubro and Tata Advanced Systems. The two private majors are supplying wing assemblies and fin and rudder assemblies.
Project 75(I) Submarine programme
Another major defence manufacturing program of India is Project 75(I), which is focused on building six next-generation conventional submarines. The project cost is estimated at Rs 70,000 crore
Public sector company Mazagon Dock Shipbuilders is the lead shipbuilder and prime contractor for the program. The company has partnered with Germany’s ThyssenKrupp Marine Systems (TKMS) under the strategic partnership model. The German technology company will provide design, AIP systems, and training.
Project 17A-Nilgiri-class
The Project 17A (Nilgiri-class) is a defence project, worth about Rs 21,800 crore, which is aimed at developing and inducting seven advanced guided-missile stealth frigates to enhance the Indian Navy’s surface combat capabilities.
Public sector companies Garden Reach Shipbuilders & Engineers and Mazagon Dock Shipbuilders are the major contractors in the projects. The two companies have delivered several frigates, and the remaining deliveries are scheduled for mid-2026.