Ordnance Factories Secure Record ₹3,500-Crore Export Orders for 2024-25

Fast summary

• The corporatisation of the ordnance Factory Board (OFB) into seven defense Public Sector Undertakings (DPSUs) as October 2021 has yielded positive results.
• Nearly ₹3,500 crore in export orders were secured during 2024-25, showcasing notable growth from ₹81 crore in exports in 2019-20.
• The seven DPSUs include: Yantra India Limited (YIL),Munitions India Limited (MIL),Armoured Vehicles nigam Limited (AVNL),Advanced Weapons and Equipment India Limited (AWE India),Troop Comforts Limited (TCL),India Optel limited (IOL),and Gliders India Limited (GIL).
• Six of the companies have been profitable, achieving cumulative profits of ₹31 crore in 2021-22 and ₹625 crore for two consecutive years thereafter. MIL emerged as the best performer among them.
• Troop Comforts Limited continues to lag behind but is expected to improve its performance soon.
• Three companies-MIL, AVNL, and IOL-received “Miniratna Category-I” status based on their profitability by Defence Minister Rajnath Singh. He emphasized reducing expenditure and boosting investments in R&D during follow-up reviews.
• The corporatisation process was implemented smoothly with no workforce unrest due to stakeholder involvement.
• MoD has declared 2025 as the “Year of Reforms,” focusing on modernising IndiaS Armed Forces with technological advancements for multi-domain operations.

Indian Opinion Analysis
The OFB’s transformation into seven DPSUs is a major milestone in India’s push toward self-reliance in defence production under its ‘Make in India’ initiative. The exponential growth from negligible export figures just five years ago demonstrates competence-building within these entities amid a competitive international arms market-a promising sign for India’s global strategic footprint.

While six DPSUs have achieved strong financial performance alongside rising export gains, Troop Comforts Limited’s struggles highlight areas needing further efficiency improvement within this restructuring framework. Giving “Miniratna” recognition to select units underscores government prioritisation toward incentivising profitability while urging investments into research capabilities for enduring advancement.smooth execution without labor disruptions reinforces confidence that such reform processes can succeed if managed inclusively-for long-term operational excellence aligning with warfare evolution goals marked by technological progress.

Read more at: The Hindu