Indian Ordnance Factories: An Overview

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Indian Ordnance Factories: An Overview

Indian Ordnance Factories: An Overview
- Posted On 2024-08-19
The Strategic Overhaul of India's Defence Sector: Disbanding the Ordnance Factory Board

The Historic Foundation of the Ordnance Factory Board:

The inception of the Ordnance Factory Board (OFB) in 1801 marked a significant milestone in India's defence history. Established under the East India Company at Fort William, Kolkata, the OFB was not just a manufacturing entity, it symbolized the consolidation of British military, economic, and political dominance in colonial India. Over the centuries, this institution evolved into a robust backbone for the Indian armed forces, paramilitary, and police forces, supplying a broad spectrum of military equipment. From tanks, armoured vehicles, and rifles to advanced optical and electronic devices, the OFB has been instrumental in equipping India's defence forces with crucial hardware.

Evolution and Expansion of the OFB:

In 1979, the entity was rechristened as the 'Ordnance Factory Board', representing a significant evolution from its colonial-era origins. The OFB's journey from a colonial armament production unit to a modern defence manufacturing giant reflects India's aspirations for self-reliance in defence production. With an annual turnover approximating Rs 19,000 crore, the OFB's contribution to India's strategic autonomy has been substantial. However, despite its storied past and contributions, the OFB has faced challenges such as inefficiencies, high production costs, and managerial rigidity, necessitating a strategic overhaul.

Indian Ordinance Factories (IOF) are the backbone of India’s indigenous defence manufacturing sector.

IOF is the largest government-operated defence production organisation in the world. It employs over 164,000 people in factories for mass production. Its primary aim is to fulfil the defence material requirements of the Indian defence forces. IOF produces arms, ammunition, explosives, materials components, armoured vehicles, troop comfort Items, sporting equipment, and many other things.

Now, their role extends beyond arms production, as they contribute to technological and industrial development, national security, and PSUs. It has continuously evolved with time and technology to enhance its production and goods. Over the years, it has gone through significant changes and expansion.

Decoding the Decision to Dismantle

The Genesis of the Dissolution Plan:

The decision to dissolve the OFB was the culmination of a long-standing government objective to enhance the efficiency and efficacy of India's defence manufacturing sector. This objective gained momentum post the 2019 Lok Sabha election, signalling a shift towards a more modern, agile, and competitive defence production paradigm. Finance Minister Nirmala Sitharaman, in her May 2020 'Aatmanirbhar Bharat' (Self-Reliant India) announcements, highlighted this strategic shift. The envisioned transformation aimed to dismantle the bureaucratic structure of the OFB, replacing it with a more streamlined, autonomous, and accountable system.

The Path to Corporatization:

An Empowered Group of Ministers (EGoM), under the chairmanship of Defence Minister Rajnath Singh, was constituted to meticulously guide this transition. The EGoM's responsibilities encompassed a range of critical aspects, from ensuring seamless operational continuity to safeguarding employee interests. In June 2021, the Indian government announced the division of the OFB into seven distinct defence public sector units (DPSUs), a decision that was ratified by the Cabinet Committee on Security in July 2020. This strategic division aimed at enhancing operational flexibility and market responsiveness of India's defence production capabilities.

The New Horizon: Seven DPSUs:

The restructuring process birthed seven DPSUs, each specializing in different aspects of defence manufacturing. These new entities, including Munitions India, Armoured Vehicles Nigam, and Advanced Weapons and Equipment India, among others, are poised to operate as autonomous corporate entities. This structural reformation is expected to infuse a new spirit of competitiveness and innovation, propelling India's defence sector into a new era of efficiency and global competitiveness.
- Munitions India Limited (MIL)
1. Munitions India Limited Headquarters, Pune (MILHQ)
2. Ammunition Factory Khadki (AFK)
3. Cordite Factory Aruvankadu (CFA)
4. High Energy Projectile Factory, Tiruchirapalli (HEPF)
5. High Explosive Factory,Khadki (HEF)
6. Ordnance Factory Bhandara (OFBA)
7. Ordnance Factory Badmal (OFBOL)
8. Ordnance Factory Chanda (OFCH)
9. Ordnance Factory Dehu Road (OFDR)
10. Ordnance Factory Itarsi (OFI)
11. Ordnance Factory Khamaria (OFK)
12. Ordnance Factory Nalanda (OFN)
13. Ordnance Factory Varangaon (OFV)
14. Munitions India Limited- Controllerate of Safety (MILCOS)
15. National Academy of Defence Production (NADP)
16. Ordnance Factory Institute of Learning, Khamaria (OFILKH)
- Advanced Weapons and Equipment India Limited (AWEIL)
1. Advanced Weapons and Equipment India Limited Headquarters (AWEILHQ)
2. Field Gun Factory Kanpur (FGK)
3. Gun Carriage Factory Jabalpur (GCF)
4. Gun & Shell Factory Cossipore (GSF)
5. Ordnance Factory Kanpur (OFC)
6. Ordnance Factory Project, Korwa (OFPKR)
7. Ordnance Factory Tiruchirapalli (OFT)
8. Rifle Factory Ishapore (RFI)
9. Small Arms Factory Kanpur (SAF)
10. Academy of Weapons Technology and Management, Ichapore (AWTM)
- Yantra India Limited (YIL)
1. Yantra India Limited Headquarters, Ambajhari (YILHQ)
2. Metal & Steel Factory (MSF)
3. Ordnance Factory Ambarnath (OFA)
4. Ordnance Factory Ambajhari (OFAJ)
5. Ordnance Factory Bhusawal (OFBH)
6. Ordnance Factory Dum Dum (OFDC)
7. Ordnance Factory Jabalpur (OFJ)
8. Ordnance Factory Katni (OFKAT)
9. Ordnance Factory Muradnagar (OFM)
10. Yantra Institute of Technology and Management, Ambajhari (YITM)
11. Yantra Business Development Centre, New Delhi (YBDC)
12. Yantra India Limited Kolkata Office, Ishapore (YILKO)
- Armoured Vehicles Nigam Limited (AVNL)
1. Armoured Vehicles Nigam Limited Headquarters, Avadi (AVNLHQ)
2. Engine Factory Avadi (EFA)
3. Heavy Vehicle Factory, Avadi (HVF)
4. Machine Tool Prototype Factory, Ambarnath (MPF)
5. Ordnance Factory Medak (OFMK)
6. Vehicle Factory Jabalpur (VFJ)
7. AVNL Institute of Learning, Ambarnath (AVNLIOLAM)
8. AVNL Institute of Learning, Avadi (AVNLIOLAV)
9. AVNL Institute of Learning, Medak (AVNLIOLMK)
- Troop Comforts Limited (TCL)
1. Troop Comforts Limited Headquarters, Kanpur (TCLHQ)
2. Ordnance Clothing Factory Avadi (OCFAV)
3. Ordnance Clothing Factory Shahjahanpur (OCFS)
4. Ordnance Equipment Factory Kanpur (OEFC)
5. Ordnance Equipment Factory Hazratpur (OEFHZ)
6. Troop Comforts Limited Training Academy, Kanpur (TCLTA)
- India Optel Limited (IOL
1. India Optel Limited Headquarters, Dehradun (IOLHQ)
2. Ordnance Factory Chandigarh (OFCD)
3. Ordnance Factory Dehradun (OFDUN)
4. Opto-Electronic Factory Dehradun (OLF)
5. Ordnance Factory Institute of Learning, Dehradun (OFIOLDD)
- Gliders India Limited (GIL)
1. Gliders India Limited Headquarters, Kanpur (GILHQ)
2. Ordnance Parachute Factory, Kanpur (OPF)
IOF Production Capabilities and Product Range

Indian Ordnance Factories have a reputation for their varied and wide-ranging manufacturing capacity. The OFB achieved 85% indigenisation, contributing to the "Make in India" drive and collaborating with academic institutions such as IITs on R&D. The factories manufacture:
- Ammunition includes the Cartridge SA.32" Revolver, Pinaka rockets, and the Dhanush 155 mm artillery gun. Arms include rifles, pistols, machine guns, and so forth.
- Artillery and heavy weaponry include field guns, howitzers, mortars, and anti-aircraft guns.
- Armoured vehicles comprise tanks, infantry combat vehicles, and armoured recovery vehicles. Examples include the Stallion Mark IV, VFJ LPTA 715, VFJ 4X4 Bulletproof Vehicle, and Mine-Protected Vehicle.
- Explosives and propellants used in ammunition include cordite, gunpowder, and others.
- Troop Comfort Items include uniforms, tents, boots, and other necessary equipment for soldiers in all branches of the military.
- Optical and electronic equipment includes sighting systems, fire control instruments, and night vision gear.
- It provides bulletproofing for civilian vehicles such as the Toyota Prado.
- It manufactures specialised products, such as propellants for ISRO’s PSLV, special alloys for satellites, and components for DRDO’s Nag missiles.
- For civil purposes, it makes limited products like sporting ammunition, revolvers, or guns for armed license holders.
Exports

The IOF exports arms and ammunition, weapon spares, chemicals and explosives, parachutes, leather, and clothes to over 30 countries worldwide. The IOF has greatly boosted its defensive equipment exports throughout the years, generating revenue for the country. It adheres to strict quality standards (ISO-9000 certified) and is involved in both original and adaptive research. In January 2025, the Ordnance Clothing Factory (OCF), Avadi, flagged off its first export of military uniforms to Suriname. The other importers are:

In Asia: Thailand, Malaysia, Indonesia, Sri Lanka, Bangladesh, Myanmar, Vietnam, Singapore

In Europe: Germany, Belgium, Cyprus, Greece, Turkey, Russia, Sweden, France, Switzerland, United Kingdom

Middle East: Oman, Egypt, Israel, Saudi Arabia, UAE

Africa: Kenya, Botswana, Nigeria

North and South America: United States, Canada, Brazil, Chile, Suriname

Workforce

Approximately 164,000 employees are managed by the Indian Ordnance Factories Service (IOFS). Group A civil service consists of 87% technical posts (engineers and technologists), and a separate Indian Ordnance Factories Health Service (IOFHS) is set up for medical staff.

There are 9 training institutes located nationwide for the training of Group A, B, and C posts. There are also 3 marketing and 4 regional directorates of safety.

The Employees Perspective and Future Prospects

The transition, while strategically sound, has raised concerns among the OFB workforce, particularly regarding job security and the operational viability of the new corporate entities. However, the government has assiduously addressed these concerns, ensuring that the employees' service conditions and benefits remain unaffected. The corporatization move is perceived as a critical step in modernizing India's defence production, drawing parallels with the transformative agricultural and dairy revolutions of the past. The government envisions these changes as a catalyst for fostering public-private partnerships, enhancing India's defence capabilities, and positioning Indian defence manufacturers on the global stage.

Opportunities for New Aspirants:

For new job aspirants, this transformation in the defence sector represents a chance to be part of a dynamic and evolving field. The demand for diverse skill sets, ranging from engineering, research and development, to project management and logistics, is likely to increase. Additionally, the emphasis on public-private partnerships could mean greater collaboration with leading private sector players, thereby expanding the scope for employment and career growth in both public and private domains.

Embracing a New Era in Defence Manufacturing

The dissolution of the Ordnance Factory Board and its reconstitution into seven specialized DPSUs marks a pivotal shift in India's defence narrative. This move is not just about restructuring an organization; it's about realigning India's defence manufacturing philosophy with contemporary global standards. As the nation embarks on this journey, the transformation promises to redefine India's defence production capabilities, making them more agile, innovative, and competitive. This strategic overhaul is a bold leap towards achieving India's long-cherished goal of self-reliance in defence manufacturing, reinforcing its position as a global defence player.

Significance

Historically, it sparked the 1857 revolt. Indian Ordnance Factories have supported India during times of war. It is now termed as the fourth arm of defence. It catered to all spheres of defence equipment needs. It plays a crucial role in strengthening national security by developing defence goods indigenously. It has contributed to industrial growth by building India’s first modern steel, aluminium, and chemical plants. It also developed and harboured new technologies over time to deliver safe and effective equipment.

The factories employ a large number of people across the country. By manufacturing domestically, they promote indigenous technology and capabilities. Pre-dissolution, OFB was the 37th-largest defence equipment manufacturer globally, the second largest in Asia, and the largest in India. It had a sales of $3 billion in 2015–16. They export the required materials to more than 30 countries worldwide. These factors enhance the national economy and provide income to people and the government. This robust manufacturing ecosystem not only bolsters national security but also fosters innovation and skill development among the workforce. As a result, the industry is poised for further growth, contributing significantly to both technological advancements and job creation in the years to come.

Every year, on March 18, Ordnance Factories Day is celebrated to commemorate the founding of the Cossipore factory. It is celebrated to honour the great work, employees, and growth of the IOF.