Nagpur: From a mere Rs 81 crore in 2019-20, when they were still a government department under the ministry of defence, exports by ordnance factories after corporatisation surged more than 81 times, reaching Rs 4,500 crore as of 2025-26, said defence minister Rajnath Singh on Friday.
Production of all seven public sector undertakings (PSUs) carved out of the ordnance factories, when combined, has more than doubled, crossing Rs 26,000 crore in 2025-26 compared to Rs 12,700 crore during pre-corporatisation times, the minister added. Singh emphasised that corporatisation of the ordnance factories was a strategic measure to enhance performance and autonomy, and the results are now evident.
In 2021, the 41 ordnance factories that were earlier under the Ordnance Factory Board (OFB) were reorganised into seven defence PSUs. One of them is Nagpur-based Yantra India Ltd (YIL). As a PSU, the erstwhile factories must achieve financial self-sufficiency, which has driven the newly formed entities to explore overseas markets. YIL's exports currently stand at Rs 397 crore.
On overall performance, the minister noted that in 2014, the value of the country's total defence production stood at Rs 36,000 crore, which has now reached Rs 1.78 lakh crore as of 2025-26. Exports have grown 40 times, from Rs 1,000 crore to Rs 40,000 crore. These figures include volumes from all entities, including ordnance factories.
Singh stated that despite rapidly changing technologies, the importance of conventional weapons will always remain. Systems used in 1947 will still be needed even in 2047, he said, stressing the need for knowledge-based self-sufficiency in the defence sector.
The minister was in the city to attend the groundbreaking of a new 10,000-tonne extrusion plant proposed at Ordnance Factory Ambajhari (OFAJ), with an investment of Rs 850 crore. OFAJ is the flagship unit of YIL. Among the first of its kind, the high-grade metal produced in the plant will lead to indigenisation of a key material currently imported by aircraft maker Hindustan Aeronautics Limited (HAL) and other PSUs.
The proposed plant will supply high-grade aluminium for manufacturing fighter planes by HAL, and also cater to PSUs such as Mazgaon Docks Limited, Bharat Dynamics Limited, and the Indian Space Research Organisation (ISRO).
YIL, which manufactures shells of various ranges, is also expanding into aerospace through tie-ups with companies like HAL for the supply of high-grade material.
Chief minister Devendra Fadnavis said Nagpur and its surrounding area are developing as a strong ecosystem for the defence manufacturing industry. Operation Sindoor has proven that enemies cannot mess with India. In a very short time, India has established itself as an exporter of defence items, leaving the entire world in awe.
