Leading US – indeed, international – defence publication Defense News has ranked South Africa’s State-owned defence industrial group Denel as the second largest defence manufacturer in the southern hemisphere and one of the top 100 in the world, in terms of revenues obtained in 2014. Denel ranks 100th on the list, and this is the first time the group has featured on it.

Denel’s appearance on the list is a reflection of the rapid increase in its revenues over the past few years. These increased from R3.2-billion in 2011 to R4.6-billion in 2014. Since then, the group’s revenues have risen by another 28%.

The increase in revenues during the period covered by the ranking – 17% – put Denel in 13th place in terms of year-on-year growth. “The global defence markets remain constrained but we are confident that we can maintain the growth trajectory for the forseeable future,” assured Group CEO Riaz Saloojee.

“As a State-owned company our primary focus is to ensure the strategic independence of the South African National Defence Force and enable it to protect the country’s territorial integrity and participate in peacekeeping operations on the continent. However,  it is also important to note that exports now constitute 52% of Denel’s revenue,” he pointed out. “This earns valuable foreign exchange for South Africa and creates a greater awareness about the qualities and capabilities of the country’s manufacturing sector.”

The group currently has a confirmed order book worth more than R35-billion. In addition, it is actively developing opportunities that could be worth a further R37-billion. These activities are concentrated in Denel’s main areas of design and manufacturing strength – artillery, ammunition, guided weapons and military vehicles. Over the past year it has invested R467-million into research and development.

The only other southern hemisphere company on the list is Brazil’s Embraer, in 55th place (up, incidently, from 60th in 2013). Defence accounts for 23% of Embraer’s revenues.