Defence Sector Profits Soar: Ordnance Factory Board Transformation Delivers Results

The corporatisation of 41 Ordnance Factory Board units into 7 Defence PSUs since October 2021 has resulted in notable financial gains. From a loss of Rs 2,844 crore in 2019-20, the entities achieved a net profit of Rs 1,625 crore in FY25, marking a significant turnaround in defense manufacturing.

In a pivotal restructuring move, the Ministry of Defence reported substantial progress in the defense manufacturing sector through the corporatisation of 41 Ordnance Factory Board (OFB) units into seven Defence Public Sector Undertakings (PSUs) since October 2021. A remarkable fiscal recovery saw net profits surge to Rs 1,625 crore in FY25.

This initiative, launched on October 1, 2021, aimed at boosting autonomy and efficiency within India's defense production infrastructure, segmenting the OFB into distinct entities: Yantra India Limited, Munitions India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, India Optel Limited, and Gliders India Limited.

The Ministry highlighted a dramatic financial turnaround from a Rs 2,844 crore loss in 2019-20 to profitability by 2021. The success, attributed partly to increased export orders, coincides with broader 'Make in India' initiatives that encourage indigenous design and manufacturing of defense equipment, underpinning India's growing self-reliance in defense production.

(With inputs from agencies.)