Safran India eyes 70% revenue boost from Gaganyaan space flight, other space, defence deals

Bengaluru: Safran's India unit expects a nearly 70 per cent revenue boost in 2025 from its defence and space business, fuelled by its work on India’s human spaceflight mission Gaganyaan and rising private-sector contracts, top executives told Reuters on Wednesday.

The Paris-based jet engine maker, 11 per cent owned by the French government, is among the world’s largest aerospace suppliers. It develops the Ariane 6 rocket jointly with Airbus, but is diversifying its supply chains amid Europe’s political instability.

India is strategic in the geopolitical context, Jetendra Gavankar, head of Safran India, told Reuters. "The biggest market in aerospace is still the US, but also Oceania/Asia and within that, India is growing in its share for the space sector rapidly."

Two years ago, it bought Bengaluru-based Captronics Systems to become Safran Data Systems India (SDSI) to tap into the country’s aerospace and defence sectors, capitalising on the government’s push to boost private sector participation in these areas.

SDSI, which has been involved with India's moon mission and the development of the new small satellite launch rocket for the Indian Space Research Organisation (ISRO), contributes about 10 per cent of Safran’s global space industry revenues.

"We expect it to contribute about 20 per cent to the overall space unit in two to three years," said Noel Ballot, EVP of sales and marketing.

The unit designs simulation systems for mission testing, integrates and verifies rocket and spacecraft components, and helps conduct launch testing among other things.

Safran expects overall revenue to surge almost 70 per cent to Rs 200 crore ($23.12 million) in calendar year 2025, said Niranjan Malode, Regional Director of SDSI, up from 2024's 40 per cent rise.

The company is looking to move some of its European manufacturing to its India hub, said Malode, as it works more closely with ISRO on its upcoming human spaceflight mission Gaganyaan and taps into the up-and-coming crop of space tech startups.

Roughly 30 per cent of overall revenue comes from the niche space business, which recorded revenue of Rs 30 crore ($3.47 million) in 2024. That is expected to touch Rs 80 crore ($9.24 million) in the calendar year 2025, he said.

The government's "Make In India" push is turning out to be crucial for getting more private and government contracts, he added.

The India projections come as the global company, in December, gave a weaker-than-expected outlook for the next four years.