Six of the seven new defense companies that had been operational since Oct. 15, 2021 reported interim profits in the first six months of business, the Defense Ministry said in a statement. Except for Yantra India Limited (YIL), all other companies reported interim profits.
Munitions India Limited (MIL) reported interim profits of Rs 28 crore, while Armored Vehicles Nigam Limited (AVANI) reported interim profits of Rs 33.09 crore. Advanced Weapons and Equipment India Limited (AWE India); Troop Comforts Limited (TCL); India Optel Limited (IOL) and Gliders India Limited (GIL) reported interim profits of Rs 4.84 crore, Rs 26 crore, Rs 60.44 crore and Rs 1.32 crore, respectively. Yantra India Limited reported a provision loss of Rs 111.49 crore.
The new ventures achieved a turnover of over Rs 8,400 crore in the first six months, according to the release. This is significant given the issue value of the old OFB in previous years.
“An amount of Rs 2,765.95 crore has been paid to the seven new companies in the current financial year for capital expenditure and equity,” he said.
Congratulating the companies for their outstanding performance, Defense Minister Rajnath Singh said the companies are reaching new heights and contributing to defense manufacturing in India.
“Encouraging to note that 6 of the 7 defense start-ups reported interim earnings within the first six months of business growth,” Singh said in a tweet.
It is encouraging to note that 6 of the 7 new defense companies reported interim profits in the first six months of business growth.
These companies are reaching new heights and contributing to India’s defense manufacturing.https://t.co/nyMq2FksQY— Rajnath Singh (@rajnathsingh) April 29, 2022
According to the statement, the companies were able to secure domestic contracts and export orders worth over Rs 3,000 crore and Rs 600 crore respectively, with Munitions India winning one of the largest export orders in ammunition of Rs 500 crore.
By paying close attention to cost reduction, these companies were able to achieve cumulative savings of approximately 9.48% in areas such as overtime and non-production activities in the first six months themselves, a he noted.
On June 16 last year, the government approved a longstanding proposal to restructure the nearly 200-year-old Ordnance Factory Board (OFB), which operates 41 munitions and defense into seven separate entities in order to improve its accountability, efficiency and competitiveness.
(Edited by : Priyanka Deshpande)