Five years after the dissolution of the Ordnance Factory Board (OFB), India's defence manufacturing landscape has undergone one of the most significant structural transformations in its history according to an interesting article by Defence Watch. The government's decision to corporatize the OFB and transfer its 41 production units into seven specialised Defence Public Sector Undertakings (DPSUs) on 1 October 2021 was aimed at improving efficiency, accountability, innovation and competitiveness across the defence industrial base.

The reform ended a decades-old departmental structure and replaced it with commercially managed enterprises focused on specific product segments. The move was also intended to provide greater financial and operational autonomy, enabling these entities to modernise production, pursue exports and respond more effectively to the evolving requirements of the armed forces.

The seven successor companies comprise Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), Advanced Weapons and Equipment India Limited (AWEIL), Troop Comforts Limited (TCL), Yantra India Limited (YIL), India Optel Limited (IOL) and Gliders India Limited (GIL). Collectively, they now form a major pillar of India's expanding defence manufacturing ecosystem and contribute significantly to the country's self-reliance objectives.

Among the seven entities, Munitions India Limited has emerged as the largest ammunition-focused company. Since corporatisation, MIL has substantially scaled up production, broadened its product range and significantly expanded exports. According to industry data, the company achieved record revenue of approximately ₹10,954 crore during FY2025-26, reflecting annual growth of around 33%.

MIL manufactures a wide spectrum of military products, including small, medium and large calibre ammunition, explosives, rockets, mortars and grenades. The company has also become one of the strongest export performers among the former OFB entities. In FY2024-25, MIL recorded sales of ₹8,282 crore, while exports reached ₹3,081 crore, highlighting growing international demand for Indian-manufactured ammunition and ordnance products.

Armoured Vehicles Nigam Limited has similarly emerged as a critical contributor to India's armoured warfare capabilities. The company oversees production and support for some of the Indian Army's most important combat platforms, including T-72 and T-90 main battle tanks, BMP-II infantry combat vehicles, mine-protected vehicles and various logistics platforms. The company has simultaneously intensified efforts to localise production and reduce foreign dependence on key components.

Its indigenisation program has delivered substantial results across major platforms. Indigenous content levels have reportedly reached 96% for the T-72 fleet, 80% for T-90 tanks and 98.5% for BMP-II infantry combat vehicles. These figures illustrate the broader shift towards domestic sourcing that has become central to India's defence industrial strategy.

Advanced Weapons and Equipment India Limited remains a crucial element of the country's weapons manufacturing infrastructure. Headquartered in Kanpur, the company operates eight production facilities alongside a specialised weapons technology academy.

AWEIL manufactures a range of defence products, including rifles, artillery systems and other weapon platforms. One of its most notable products is the indigenous 155 mm Dhanush artillery gun, which represents a key component of the Indian Army's artillery modernisation effort.

The company's facilities include major manufacturing centres such as Gun Carriage Factory Jabalpur and Gun and Shell Factory, both of which continue to play an important role in domestic defence production.

The committee called for improvements in procurement practices, cost controls, quality assurance mechanisms and research and development investments. Its findings underscore that while corporatisation has improved operational flexibility, structural issues in portions of the defence manufacturing sector have not disappeared entirely.

Yantra India Limited has recorded one of the most striking financial turnarounds among the seven successor companies. The enterprise has successfully leveraged its engineering and industrial manufacturing capabilities to expand both domestic and export business.

The company has established a strong export presence. Export order bookings during FY2025-26 reached ₹1,719 crore, while its total order book stood at ₹4,671 crore as of 31 March 2026. Export contracts accounted for approximately ₹2,395 crore of this total.

The firm's progress was recognised through the award of Miniratna Category-I status during 2026. This made YIL the fourth corporatized OFB successor to secure the classification after MIL, AVNL and India Optel Limited.

Beyond financial performance, Yantra India has invested heavily in advanced industrial capabilities. Its ongoing initiatives include the establishment of a radial forging plant, a 3,000-ton heavy-duty open-die forging press and a 10,000-ton aluminium extrusion press facility at Ambajhari. These projects are expected to strengthen domestic production of critical defence-grade metal components and specialised engineering products.

India Optel Limited has become a key player in the electro-optics segment, one of the fastest-growing domains within modern defence manufacturing. The company's technologies support armoured vehicles, artillery systems, naval weapon platforms and surveillance systems.

Its portfolio includes opto-electronic equipment and advanced vision systems used on T-72 and T-90 tanks, BMP-II infantry combat vehicles, artillery guns and naval platforms.

The company's growth since corporatisation has been particularly notable. Revenue increased from ₹562.12 crore during the second half of FY2021-22, when the enterprise first became operational, to ₹1,541.38 crore in FY2024-25. This expansion reflects increasing demand for indigenous electro-optical equipment across the services.

Troop Comforts Limited has moved beyond its traditional role as a supplier of military clothing and basic equipment. The company has sought to modernise its offerings and integrate commercial expertise into defence manufacturing.

A major example came in January 2026 when TCL signed a memorandum of understanding with Adidas India to develop advanced physical-training footwear for the Indian Navy and potentially other military and security organisations.

The partnership combines TCL's manufacturing infrastructure with Adidas' expertise in footwear design and performance engineering. In addition to footwear development, TCL continues to manufacture combat clothing, protective gear and personal equipment for military personnel.

Gliders India Limited remains India's primary specialist in parachute and aerial delivery systems. Since corporatisation, the company has concentrated on expanding indigenous capabilities in airborne logistics and specialised parachute technologies.

During 2026, GIL successfully produced and tested the indigenous Air Droppable Container ADC-150 in partnership with DRDO. The system is capable of delivering payloads weighing up to 150 kilograms and represents another step towards self-reliance in airborne logistics systems.

The company also completed successful live jumps involving an advanced parachute system developed jointly with the Aerial Delivery Research and Development Establishment (ADRDE), demonstrating continued progress in indigenous parachute technology.

The broader corporatisation initiative has delivered measurable improvements beyond individual company performance. Defence manufacturing entities that once operated under a single bureaucratic framework now function as specialised organisations focused on distinct product segments, market opportunities and technological priorities. The reforms have supported stronger export activity, greater managerial accountability and enhanced industrial specialisation. They have also aligned with wider national objectives aimed at strengthening domestic manufacturing, reducing import dependence and increasing India's presence in global defence markets.

The progress achieved since October 2021 suggests that corporatisation has fundamentally altered the trajectory of the former ordnance factory network. The coming years will determine whether that transformation can be translated into long-term global competitiveness and a stronger position for India within the international defence manufacturing industry.

Agencies