Companies carved out of the erstwhile Ordnance Factory Board (OFB) last year have reported profits in the first six months of their existence, reversing the trend of accumulating losses in their previous avatar before the board was corporatised, a long-awaited reform in India’s defence manufacturing sector, data from the defence ministry shows.
The new firms posted provisional profits during October 1, 2021-March 31, 2022, except one which was in the red but still cut losses by a third.
Prime Minister Narendra Modi inaugurated the seven new firms on the occasion of Dussehra in October, saying the entities would play a critical role in helping the country cut down military imports in line with the “Aatmanirbhar Bharat (self-reliant India)” vision.
While the new firms did not record significant profit – it ranged from about ₹1.3 crore to ₹60 crore – the numbers reflect a remarkable improvement in performance over the last three years when they accumulated average six-monthly losses ranging from ₹44 crore to ₹677 crore.
According to the data released on Friday, the companies that made a profit were India Optel Limited ( ₹60.44 crore), Armoured Vehicles Nigam Limited ( ₹33.09 crore), Munitions India Limited ( ₹28 crore), Troop Comforts Limited ( ₹26 crore), Advanced Weapons and Equipment India Limited ( ₹4.84 crore) and Gliders India Limited ( ₹1.32 crore).
