Indian Defense Industry General News and Updates

IVECO's defence business is not included in the deal, it's been spun off. The negotiations are just regarding their commercial vehicle business.

From the article:

"A sale would not include Iveco's IDV defence business."

Earlier, they got offers from various buyers (including Chinese) but couldn't make the sale as the defence business was sensitive and the Italian Govt held a veto on that. Because of this, that business was spun off as a separate entity. Now, the sale of the CV division can be made smoothly to anyone.

https://www.reuters.com/business/re...o-sale-tata-motors-document-shows-2025-11-07/
 

Raksha Mantri to review performance of 16 DPSUs in New Delhi​

Posted On: 08 NOV 2025 7:21PM by PIB Delhi

Raksha Mantri Shri Rajnath Singh will undertake the annual performance review of the 16 Defence Public Sector Undertakings (DPSUs) in New Delhi on November 10, 2025. Raksha Mantri had declared 2025 as the ‘Year of Reforms’, underscoring the importance of development of new technology by DPSUs and the need for enhancing exports and indigenisation. To achieve this objective, he exhorted them to increase their investment and manpower for R&D.

Since then, all the DPSUs have prepared their R&D roadmap for the next five years. Over the last 10 years, a total sum of Rs 30,952 crore has been invested in R&D by the 16 DPSUs. The pace of R&D is now proposed to be doubled with projected expenditure of Rs 32,766 crore over the next five years. While most of the R&D investment over last 10 years was made by old DPSUs notably Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited and Bharat Dynamics Limited, the thrust on R&D is now spread across all DPSUs. In next five years, the seven new DPSUs formed upon corporatisation of the Ordnance Factory Board will invest over Rs 3,000 crore for R&D, while defence shipyards have planned an investment of over Rs 1,300 crore.

During the event, a compilation of D&D/R&D projects carried out in the last 10 years, and the plan for the next five years will be released. In addition, the new R&D Manual of HAL providing flexibility, speed, risk assessment, and allocation in R&D projects will be unveiled.

Raksha Mantri will also release a report on renewable energy, titled ‘Swayam’. This report is the first-ever attempt made under the aegis of Department of Defence Production to compile the energy efficiency practices of all the 16 DPSUs.

Notably, the performance of DPSUs in 2024-25 has been commendable. The total turnover stood at Rs 1.08 lakh crore, up 15.4% from that in 2023-24. The DPSUs recorded cumulative Profit After Tax in 2024-25 of Rs 20,021 crore, registering a growth of 19.5 % over the previous year. Remarkably, in 2024-25, DPSU’s achieved an increase of 51% in exports over the previous Financial Year. The event will witness felicitations to various DPSUs for their notable achievements in different areas and exchange of significant MoUs.
 
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Zuppa has received funding from Garuda Aerospace few months ago

 
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It is indeed a two way street. The IA also has to do its part and at least give a fair trial to Indian Weapon Systems. WhAP really was a watershed moment in recent procurement history when it comes to an opportunity that was lost. Also, ATAGS lines continue to receive lukewarm responses. Baba Kalyani had previously highlighted this aspect when comes to defence procurement - small lot sizes with an unpredictable renewable timeline. 7 years of trials and an order size close to 200 units.

Suppliers are able to export quicker to other countries in Africa and increasingly Eastern Europe. So, they are expanding their markets or at least trying to foray into spaces that are unfamiliar to the domestic industry.
 
BDL got Invar contract ~ 2000cr. This is unusual, gun launched atgm as emergency buy?

BDL usually has been getting contracts for Milan, Konkurs and Invar in March to exhaust the remaining funds. But it didn't happen this year and previous year. Maybe just keeping the production line running.

If CLGM gets order that would be interesting, given that the strike corps of Pak has VT4s now.
 
BDL usually has been getting contracts for Milan, Konkurs and Invar in March to exhaust the remaining funds. But it didn't happen this year and previous year. Maybe just keeping the production line running.

If CLGM gets order that would be interesting, given that the strike corps of Pak has VT4s now.
They have been executing some large konkurs M orders over the past year likely export, also saw 5 figure nos of konkurs getting refurbed which is likely for army. Invar I think will be trusted over CLGM due to good training & hands on for a long time.
 

Hindustan Aeronautics revamp study to be ready by March next year | Govt ropes in BCG to conduct study in view of firm's growing order book​

A study on reorganising state-run Hindustan Aeronautics Ltd (HAL) will be ready by March next year, with the government engaging Boston Consulting Group (BCG) for the purpose, defence sources told Business Standard.

The move comes in light of the company’s growing order book and is focused on platform delivery as well as meeting customer requirements, they added.

HAL’s confirmed contracts pending or under execution stand at around ₹2.52 trillion.

Not only is HAL India’s largest defence firm by revenue, order book, and market capitalisation, it is also the country’s only combat aircraft manufacturer at present.

Apart from decades of licence manufacturing foreign-designed platforms like the MiG-21 and Su-30MKI, it is also producing the indigenous light combat aircraft Tejas and handling regular repair and overhaul orders.

It has also designed and manufactured a range of military and civil helicopter variants.

“BCG was brought in during September to study ways to reorganise HAL,” said one of the sources. They added that the move was initiated by the Ministry of Defence’s Department of Defence Production, which oversees all of the country’s 16 defence public sector undertakings (DPSUs), including HAL.

The source added that BCG has been given until March 2026 to submit its study.

The proposed reorganisation aims to improve HAL’s platform delivery efficiency, sharpen its product focus, and enhance customer responsiveness, the sources said.

In what could be the first substantive challenge to its monopoly in combat aircraft manufacturing, HAL is competing with a clutch of private-sector contenders to qualify for building prototypes of the Advanced Medium Combat Aircraft (Amca).

However, its expansive order book has proved to be a challenge, with one of the criteria in the expression of interest issued by the Aeronautical Development Agency, the Amca’s design agency, stipulating that companies would receive zero marks out of 100 if their order book was three times their turnover.

HAL’s order book is over eight times its FY25 turnover of ₹30,105 crore. Its FY25 order book alone accounted for 37.14 per cent of the combined value held by all nine original, or ‘old’, DPSUs, according to the Standing Committee on Defence’s March 2025 report.

The seven ‘new’ DPSUs were created in October 2021 through the corporatisation of the Ordnance Factory Board.

HAL is yet to begin deliveries of the 83 Tejas Mark-1A (Mk1A) jets, contracted for ₹36,400 crore in February 2021, to the Indian Air Force. It is also executing a ₹62,700-crore order placed in March 2025 for 156 Prachand Light Combat Helicopters.

In September, HAL received a follow-on order for a second tranche comprising 97 Mk1A aircraft at a cost exceeding ₹62,370 crore. Deliveries are expected to begin in 2027–28 and conclude over six years.