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-bil- lion 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% – puts 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,” assures Group CEO Riaz Saloojee. He notes that the success of Denel’s Rooivalk attack helicopter on United Nations operations has attracted worldwide attention to the country’s defence technological and industrial capabilities.

“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 points 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, incidentally, from 60th in 2103). Defence accounts for 23% of Embraer’s revenues. For Denel, naturally, that proportion is 100%.

In terms of South Africa’s other Brics (Brazil, Russia, India, China and South Africa) partner countries, India is represented by two groups, Hindustan Aeronautics (which gets 98% of its revenues from defence) in 38th place (up from 39th) and Bharat Electronics in 76th (down from 74th), which obtains 80% of its revenues from defence. No Chinese companies are listed, probably owing to a lack of data.

Russia, however, has more companies on the list than all the other Brics members combined – seven in all. The highest ranked, at 11th (up from 12th in 2013) is Almaz-Antey, which specialises in surface-to-air missiles, radars and associated command systems. Currently, 100% of its revenues is credited as coming from defence, although it does have civil products as well. Next, at 14th, is the United Aircraft Corporation (UAC), which was unlisted in 2013, with 80% of its revenues from defence. UAC manufactures the renowned MiG and Sukhoi fighters and Tupolev bombers, as well as civil aircraft. The country’s helicopter manufacturer, Russian Helicopters, follows at 23rd (up from 25th), with 88% of its revenues from defence. Then, at 26th (up from 34th), is aero-engine, marine engine, industrial gas turbine and rocket engine maker United Engine Building, which gets 61.5% of its revenues from defence. The Tactical Missiles Corporation occupies 31st place (unlisted in 2013) – regarding its revenues, 95% comes from defence (it has a line of civil products as well as the missiles it gets its name from). In 52nd place is Uralvagonzavod, which gets 51.6% of its revenues from defence; this company produces a wide range of civil engineering and railway equipment, as well as tractors, in addition to its defence business of battle tanks and related heavy armoured vehicles. Finally, there is electronics group RTI, which gets 50.5% of its revenues from defence and is ranked at 69th (up from 78th).