SIDM Welcome Corporatisation of Ordnance Factories

The Society of Indian Defence Manufacturers (SIDM) congratulated the Ministry of Defence on 15 October 2021 congratulated the Ministry of Defence and welcomed its step of carving out seven new defence companies out of the Ordnance Factory Board (OFB).

A press statement from the SIDM stated, “Seven new defence companies, carved out of the Ordnance Factory Board (OFB), were dedicated to the Nation at a function organised by the Ministry of Defence in New Delhi today. SIDM congratulates the Ministry of Defence on this momentous occasion.”

It further added that the SIDM was looking forward to enhancing its cooperation with the seven new defence companies namely Munitions India Limited (MIL); Armoured Vehicles Nigam Limited (AVANI); Advanced Weapons and Equipment India Limited (AWE India); Troop Comforts Limited (TCL); Yantra India Limited (YIL); India Optel Limited (IOL) and Gliders India Limited (GIL).

The SIDM believed that the defence industry eco-system is ‘very optimistic and that ‘this restructuring will transform the ordnance factories in due course into more productive and profitable assets, deepen their specialisation in product ranges, enhance competitiveness and improve quality and cost-efficiency.’




Industry members of SIDM welcome this step. Tiered industry partners of erstwhile Ordnance Factories are excited at the prospects of engaging and doing business with these seven new companies who will now adopt corporate standards for their commercial activities – from vendor development, tendering, contracting to payment systems etc. It is a welcome step towards pushing the envelope of performance as far as competitiveness and performance are concerned.

In his message during the ceremony, Prime Minister Narendra Modi mentioned that these new companies would play an important role in import substitution, in line with the vision of ‘Atmanirbhar Bharat’. SIDM will work in close coordination with MoD to fulfil this cherished national goal.

President, SIDM, Jayant Patil said “Defence Industry of our country is aspiring to become a global brand. As envisioned by the Hon’ble Prime Minister, Industry can leverage mutual strengths to enhance India’s competitiveness with global quality, reliability backed by R&D and innovation to be a force to reckon with in the global stage.”

Vice President, SIDM, S P Shukla said “Most appropriate news to come on Vijayadasami. A laudable move to convert Ordnance Factory Board into seven Defence PSUs. It will improve transparency, accountability, competition & empowerment in defence production. SIDM will extend wholehearted support to the seven new DPSUs”

Director General, SIDM, Sunil Misra who attended the function with other SIDM Secretariat officials said “We were lucky to witness this historic moment. SIDM is looking forward to the integration of these new companies into the overall defence manufacturing ecosystem and will do everything possible to facilitate this transition to corporatisation and enhance efficiency and market orientation”.

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