Five years on, seven OFB successor DPSUs expands defence manufacturing, exports and indigenous capabilities

New Delhi: Five years after the government dismantled the Ordnance Factory Board (OFB) and transferred its 41 production units to seven specialised defence PSUs, the companies have expanded into areas ranging from ammunition and armoured vehicles to artillery, electro-optics, defence clothing and parachute systems.

The seven companies — 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) — began operations on October 1, 2021. The restructuring was intended to provide greater functional and financial autonomy while improving efficiency, innovation and competitiveness.

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MIL has emerged as the largest ammunition-focused entity among the seven. The company reported record revenue of about ₹10,954 crore in FY2025-26, representing year-on-year growth of roughly 33%, according to an industry report published in 2026. MIL manufactures small-, medium- and large-calibre ammunition, explosives, rockets, mortars and grenades and has also expanded its export business. Its FY2024-25 sales had already reached ₹8,282 crore, with exports at ₹3,081 crore, according to the Ministry of Defence.

AVNL has focused on armoured vehicles, mobility and indigenisation. Its portfolio includes T-72 and T-90 tanks, BMP-II infantry combat vehicles, mine-protected vehicles and logistics platforms. The company says its FY2025-26 revenue was projected at ₹5,808 crore, with an order book of ₹34,538 crore as of January 31, 2026. Its current indigenisation programme includes components for the T-72, T-90 and BMP-II platforms. AVNL says T-72, T-90 and BMP-II indigenous content stands at 96%, 80% and 98.5%, respectively.

AWEIL remains central to India's artillery and small-arms manufacturing base. The Kanpur-headquartered PSU operates eight production units and a weapons-technology academy, with products including the indigenous 155 mm Dhanush artillery system, rifles and other weapon systems. Its current website also lists ongoing recruitment and production activity at facilities including Gun Carriage Factory Jabalpur and Gun and Shell Factory.

At the same time, AWEIL represents an area where the corporatisation process continues to face challenges. A Parliamentary Standing Committee on Defence report discussed in August 2026 flagged issues involving weak demand, production costs, quality and idle capacity at small-arms factories, and called for improvements in procurement, cost management, quality control and R&D.

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Yantra India Limited has undergone one of the clearest financial transformations. In FY2025-26, YIL recorded its highest-ever revenue from operations of ₹3,490 crore, up around 12% from the previous year, and its highest-ever profit before tax of ₹616 crore, up about 21%. Its export order bookings during the year reached ₹1,719 crore, while its overall order book stood at ₹4,671 crore as of March 31, 2026, including approximately ₹2,395 crore of export orders.

YIL also received Miniratna Category-I status in 2026, becoming the fourth of the seven successor companies to receive the status after MIL, AVNL and IOL. It has additionally moved into advanced manufacturing projects, including a radial forging plant, a 3,000-tonne heavy-duty open-die forging press and a 10,000-tonne aluminium extrusion press facility at Ambajhari.

India Optel Limited has strengthened the electro-optics segment of the defence supply chain. The company manufactures opto-electronic systems and vision equipment used across platforms including T-90 and T-72 tanks, BMP-II infantry combat vehicles and artillery and naval guns. Its sales had risen to ₹1,541.38 crore in FY2024-25, from ₹562.12 crore during the second half of FY2021-22, when it became operational as a new DPSU.

Troop Comforts Limited has moved beyond traditional clothing and personal equipment. In January 2026, TCL signed an MoU with Adidas India to develop high-performance physical-training footwear for the Indian Navy and potentially other defence and security customers. The partnership combines TCL's indigenous manufacturing base with Adidas' footwear-development expertise. TCL's current product portfolio also includes combat clothing and protective equipment.

Gliders India Limited is concentrating on parachute and aerial-delivery capabilities. In 2026, GIL reported the successful production and trials of an indigenously designed Air Droppable Container ADC-150, developed with DRDO, capable of carrying a 150-kg load. The company also conducted live jumps of an advanced parachute system developed with its design partner ADRDE.

Together, these developments illustrate how the seven companies have moved into more specialised business structures since the OFB's dissolution. The change has also been accompanied by a broader rise in the output and export contribution of the former ordnance-factory ecosystem.

The transformation, however, remains uneven. While companies such as MIL, AVNL and YIL have recorded significant growth and expanded exports, the parliamentary review of AWEIL shows that corporatisation by itself has not eliminated structural challenges such as demand uncertainty, production economics and quality concerns.

As the seven DPSUs enter their sixth year, their next challenge will be to convert the autonomy created by corporatisation into sustained technological development, competitive manufacturing, larger export markets and a stronger role in India's increasingly diversified defence-industrial base.

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