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Corporatization of the Ordnance Factory Board (OFB)

India's ordnance factories have achieved unprecedented export orders of ₹3,500 crore in FY25, marking the highest amount since corporatisation

Deeksha Upadhyay 04 September 2025 12:34

Corporatization of the Ordnance Factory Board (OFB)

What does it consist of?

In October 2021, the government restructured 41 Ordnance Factory Board units into seven Defence Public Sector Undertakings (DPSUs).

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Result:

Financial recovery: from a total loss of ₹2,844 crore (2019-20) → ₹625 crore gain (2022-23 & 2024-25).

Exports jumped from ₹81 crore in 2019-20 to ₹3,500 crore by 2024-25.

MIL became the leading performer, with three DPSUs (MIL, AVNL, IOL) receiving Miniratna Category-I status.

Importance:

Bolsters self-sufficiency (Atmanirbhar Bharat) in military manufacturing.

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Enhances Make in India and defense exports.

Enhances productivity, marketability, and research and development funding.

Lowers reliance on imports and promotes strategic independence.

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