Defense Business and Industry

OFB Reorganisation into DPSUs Achieves Significant Profit Growth

The Indian government’s reorganisation of the Ordnance Factory Board (OFB) into seven Defence Public Sector Undertakings (DPSUs) has yielded remarkable results, with the DPSUs reporting a net profit of ₹1,625 crore for FY25, a significant turnaround from the ₹2,844 crore loss in 2019-20. This shift to independent entities has fostered financial discipline, modern management practices, and strategic clarity, aligning with the “Aatmanirbhar Bharat” initiative for self-reliance in defence manufacturing. The reform not only enhances the efficiency of defence production but also positions India as a competitive player in the global defence market, paving the way for collaboration between public and private sectors and bolstering India’s defence export potential.

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