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Key Points

The Ministry of Defence has announced remarkable results from the corporatisation of Ordnance Factory Board units. Seven new Defence PSUs created from 41 OFB units have achieved a dramatic financial turnaround. These entities reported a net profit of Rs 1,625 crore in FY25, reversing previous losses of Rs 2,844 crore. The reforms are part of the government's broader Make in India initiative to enhance indigenous defence manufacturing capacity.

Key Points: Defence PSUs Turn Rs 2844 Cr Loss into Rs 1625 Cr Profit After OFB Corporatisation

  • 41 Ordnance Factory Board units reorganized into 7 Defence PSUs in October 2021
  • Turned Rs 2844 crore loss into Rs 1625 crore profit in FY25
  • Surge in export orders alongside significant profit growth
  • Part of Make in India program to boost indigenous defence manufacturing
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Corporatisation reform of 41 OFB units reorganised into 7 Defence PSUs has delivered remarkable results: MoD

Ministry of Defence reports 41 OFB units reorganized into 7 Defence PSUs achieved Rs 1625 crore net profit in FY25, reversing previous losses through corporatisation reforms.

"From a loss of Rs 2,844 cr in 2019-20 to a net profit of Rs 1,625 cr in FY25 - Office of the Defence Minister"

New Delhi, September 5

The Ministry of Defence stated that the corporatisation reform of 41 Ordnance Factory Board (OFB) units reorganised into 7 Defence Public Sector Undertaking (PSUs) has delivered remarkable results since October 2021, and a net profit of Rs 1,625 crore has been achieved in FY25.

In a post on X, the Office of the Defence Minister, "Since October 2021, when 41 OFB units were reorganised into 7 Defence PSUs, the corporatisation reform has delivered remarkable results. From a loss of Rs 2,844 cr in 2019-20 to a net profit of Rs 1,625 cr in FY25, setting new benchmarks in defence manufacturing."

In 2021, the Ministry of Defence stated that to enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the production units of Ordnance Factory Board have been converted into 7 Defence Public Sector Undertakings with 41 Units with effect from 1st October 2021 ("Appointed date").

Since October 2021, when 41 OFB units were reorganised into seven entities -- 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).

According to the Ministry of Defence, from a cumulative loss of Rs 2,844 crore in 2019-20, the entities have turned around, reporting profits of Rs 31 crore in 2021-22 and Rs 625 crore in 2022-23. In 2024-25, profits stood at Rs 1625 crore alongside the surge in export orders.

The Government has taken several policy initiatives in the past few years under the 'Make in India' program and brought in reforms to enhance the capacity of manufacturing undertakings and private industries functioning in the country by encouraging indigenous design, development and manufacture of defence equipment.

- ANI

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Reader Comments

P
Priya S
Great to see our defence manufacturing becoming self-reliant. The profit numbers are impressive - from ₹2844cr loss to ₹1625cr profit! Hope this translates to better equipment for our armed forces.
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Aman W
While the numbers look good, I hope the quality of products hasn't been compromised. Defence manufacturing needs both efficiency and excellence. The real test will be how these perform in actual field conditions.
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Sarah B
Corporatization was much needed. The old OFB structure was too bureaucratic. Now with 7 specialized companies, each can focus on their core competencies. Smart move by the government!
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Vikram M
Excellent progress! The surge in export orders shows global acceptance of Indian defence products. This will boost our economy and strategic autonomy. Jai Hind! 🚀
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Nikhil C
Hope the employees are getting their due benefits in this new structure. Sometimes reforms focus only on profits while workers suffer. Balanced approach is important.
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Kavya N
This is what happens when we move from babu culture to professional management. The defence sector needed this modernization for years. More power to our defence manufacturing! 💪

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