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The War Business
The relationship between man, machine and economics
Introduction to Defense Industry
• The defense industry has become broader since the beginning of the
21st century.
• The defense industry was almost entirely composed of companies that
specialized in the research, development, and production of defense
weaponry and technologies.
• Global military spending reached $1.739 trillion(INR 11.08 lakh crore) in
2017, up 1.1% from 2016, according to the Stockholm International
Peace Research Institute.
• Deloitte estimates global defense spending to grow at a compound
annual growth rate (CAGR) of about 3 percent over the 2017-2022
period.
Source: https://www.businessinsider.in/The-15-countries-with-the-highest-military-budgets-in-2017/1-United-States/slideshow/64007613.cms
Source: https://defense.info/partners-corner/2018/05/2018-outlook-for-global-aerospace-and-defense-industry/
How much countries spent on your defense?
Source: https://www.businessinsider.in/The-15-countries-with-the-highest-military-budgets-in-2017/1-United-States/slideshow/64007613.cms
610
228
69.4
66.3
63.9
57.8
47.2
45.4
44.3
39.2
29.3 29.2
27.5
20.6 18.2
Defense Budget as per 2017 (in Bn $)
USA
China
KSA
Russia
India
France
UK
Japan
Germany
South Korea
Brazil
Italy
Australia
Canada
Turkey
How much companies earn from war business?
Lockheed Martin
Country: USA
Arms sales: $40.8
billion
Total sales: $47.2
billion
Profit: $5.3 billion
Employees: 97,00
0
Sector: Aircraft,
Missiles etc.
Boeing
Country: USA
Arms sales: $29.5
billion
Total sales: $94.6
billion
Profit: $4.9 billion
Employees: 150,5
00
Sector: Aircraft,
Missiles etc.
Raytheon
Country: USA
Arms sales: $22.9
billion
Total sales: $24.1
billion
Profit: $2.2 billion
Employees: 63,00
0
Sector: Missile-
Defense system,
Torpedoes etc.
BAE Systems
Country: UK
Arms sales: $22.8
billion
Total sales: $24.0
billion
Profit: $2.4 billion
Employees: 83,00
0
Sector: Aircraft,
Missiles, Artillery
Northrop
Grumman
Country: USA
Arms sales: $21.4
billion
Total sales: $24.5
billion
Profit: $2.2 billion
Employees: 67,00
0
Sector: Aircraft,
Missiles, Ships
etc.
Source: https://www.msn.com/en-us/money/companies/20-companies-profiting-the-most-from-war/ss-BBJntl6#image=20
How International Business plays the
important role in Defense industry?
• Licensing
• Exporting
• Joint ventures
• Merger and Acquisition
शमशीर के साये के तले…
जन्नत पलती है
|
-Major Gaurav Arya
The war business

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The war business

  • 1. The War Business The relationship between man, machine and economics
  • 2. Introduction to Defense Industry • The defense industry has become broader since the beginning of the 21st century. • The defense industry was almost entirely composed of companies that specialized in the research, development, and production of defense weaponry and technologies. • Global military spending reached $1.739 trillion(INR 11.08 lakh crore) in 2017, up 1.1% from 2016, according to the Stockholm International Peace Research Institute. • Deloitte estimates global defense spending to grow at a compound annual growth rate (CAGR) of about 3 percent over the 2017-2022 period. Source: https://www.businessinsider.in/The-15-countries-with-the-highest-military-budgets-in-2017/1-United-States/slideshow/64007613.cms Source: https://defense.info/partners-corner/2018/05/2018-outlook-for-global-aerospace-and-defense-industry/
  • 3. How much countries spent on your defense? Source: https://www.businessinsider.in/The-15-countries-with-the-highest-military-budgets-in-2017/1-United-States/slideshow/64007613.cms 610 228 69.4 66.3 63.9 57.8 47.2 45.4 44.3 39.2 29.3 29.2 27.5 20.6 18.2 Defense Budget as per 2017 (in Bn $) USA China KSA Russia India France UK Japan Germany South Korea Brazil Italy Australia Canada Turkey
  • 4. How much companies earn from war business? Lockheed Martin Country: USA Arms sales: $40.8 billion Total sales: $47.2 billion Profit: $5.3 billion Employees: 97,00 0 Sector: Aircraft, Missiles etc. Boeing Country: USA Arms sales: $29.5 billion Total sales: $94.6 billion Profit: $4.9 billion Employees: 150,5 00 Sector: Aircraft, Missiles etc. Raytheon Country: USA Arms sales: $22.9 billion Total sales: $24.1 billion Profit: $2.2 billion Employees: 63,00 0 Sector: Missile- Defense system, Torpedoes etc. BAE Systems Country: UK Arms sales: $22.8 billion Total sales: $24.0 billion Profit: $2.4 billion Employees: 83,00 0 Sector: Aircraft, Missiles, Artillery Northrop Grumman Country: USA Arms sales: $21.4 billion Total sales: $24.5 billion Profit: $2.2 billion Employees: 67,00 0 Sector: Aircraft, Missiles, Ships etc. Source: https://www.msn.com/en-us/money/companies/20-companies-profiting-the-most-from-war/ss-BBJntl6#image=20
  • 5. How International Business plays the important role in Defense industry? • Licensing • Exporting • Joint ventures • Merger and Acquisition
  • 6. शमशीर के साये के तले… जन्नत पलती है | -Major Gaurav Arya