Corporatisation reform of 41 OFB units reorganised into 7 Defence PSUs has delivered remarkable results: MoD

New Delhi [India], September 5 (ANI): 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)