Defence sector update: Recent developments that can propel the stocks

December 2023 proved to be a transformative month for the Indian defence sector, buzzing with a confluence of record production, pivotal procurement decisions, and unwavering strides towards self-reliance. The year 2022-2023 closed with defence production exceeding Rs 1 lakh crore for the first time, marking a momentous achievement in domestic manufacturing prowess.

The Defence Acquisition Council (DAC) cleared crucial upgrades for fighter jets and artillery, injecting momentum into crucial modernization plans. While a spirit of indigenization permeated through initiatives like standardization and private-sector collaboration, December also witnessed a glimpse of the future with the testing of cutting-edge technologies, setting the stage for a dynamic journey in the months to come.

Following are the Key Developments in the Defence Sector for December 2023

• The Indian Navy has commissioned the fourth P15B stealth-guided missile destroyer, INS Imphal.
• GRSE has delivered INS Sandhayak to the Indian Navy, which is the first of four largest-ever survey vessels to be built in the country.
• The Indian Army released an RFI to procure 10,000 handheld thermal imager uncooled devices, enabling soldiers to carry out surveillance up to 3,000 meters.
• The DRDO has issued an Expression of Interest (EOI) seeking eligible private sector companies for the development, testing, and evaluation of a 40 mm high explosive anti-personnel grenade.
• MDSL has signed a contract for 37.5kte multi-purpose vessels for a European client, scheduled for delivery in the next four years.
• MDSL and the Gujarat state government have signed a MoU for the construction of an underwater adventure submarine, designed specifically for exploring marine life.
• HAL to start work for establishing the TPE 331 12B engine facility at its engine division for the HTT-40 trainer. The establishment of the TPE 331
• 12B engine facility in India is a significant development, as the same engine will power the upcoming 31 MQ9B drones.
• India has received price bids from France for three additional Scorpion class conventional submarines. MDSL submitted its commercial offer for three more Scorpion submarines on Dec 11, ’23.
• Lockheed Martin has delivered the sixth TH-60 Seahawk helicopter to the Indian Navy, and the delivery of all 24 units may be completed by CY25 end.
• The Indian Navy Chief has announced that the Navy has contracted two Hermes 900 UAVs, which will be manufactured in India under the ToT agreement with Elbit Systems. The UAVs will have 60% indigenous content and are likely to be inducted by Feb’24.
• Tata Boeing Aerospace Limited has delivered the 250th fuselage for the AH-64 Apache helicopter to Boeing, from its state-of-the-art facility in Hyderabad.
• The Indian Navy is looking to upgrade 10 Kamov Ka-28 helicopters with the Israeli Schiebel Naval upgrade package, which includes advanced sonar, radar, and sensors.
• Suryadipta Projects Private Limited has successfully delivered the third ammunition-cum-torpedo missile (ACTACM) barge to the Indian Navy.
• Israeli company Smart Shooter delivered its Smash X4 Sight to the special forces of the Indian Army’s 15 Corps, aiming to improve the hit rate for various stationary and mobile targets.
• Advanced Weapons and Equipment India Limited has resolved spare parts-related issues and resumed the production of Dhanush artillery guns. The company aims to deliver 26 new howitzers to the Indian Army before Mar’24, bringing the total number to 50 units. The commitment is to deliver all 114 units by CY26.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.