Earned profit: Six out of seven new defense companies recovered from losses, did business of more than Rs 8400 crore

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Seven new defense companies formed by the Government of India with the aim of making the country self-reliant in the field of defense production, have shown excellent results in the first half of the establishment. These companies, which started business with the capital of about 7.75 thousand crores received from the center, have done a business of more than 8,400 crores in their first half. India has largely been dependent on imports for its defense needs. In view of the challenges of business efficiency, the Central Government merged the Ordnance Factory Board (OFB) as a department under the Ministry of Defense in June 2021, and then dissolved it on October 1, 2021. Instead, seven defense companies were launched on October 15, 2021, on Vijayadashami.

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Out of these seven companies, except Yantra India Limited (YIL), the remaining six companies are Munitions India Limited (MIL), Armored Vehicles Nigam Limited (Avni), Advanced Weapons and Equipment India Limited (AWE India), Troop Comforts Limited (TCL), India Optel Limited (IOL) and Gliders India Limited (GIL) have posted profits.
OFB orders will also be fulfilled: Orders worth 70,776 crores placed to OFB to these companies have been handed over as contracts. 7,765 crore has been given by the government to these companies to fulfill orders for 2021-22, so that 60% preparation can be done before starting business. Apart from this, Rs 2,765.95 crore has been given to seven new companies during the current financial year for capital expenditure and equity.
Export orders also started getting: Companies have got domestic orders worth Rs 3,000 crore and export orders worth Rs 600 crore. MIL got the biggest export order of Rs 500 crore. YIL has taken an order of Rs 251 crore from Indian Railways for manufacturing axles.
Excellent first half results
Looking at the profit and loss of new defense companies from October 1, 2021 to March 31, 2022, it has given good results in a very short time. Before starting the business, MIL was in loss of 677.33 crores, which are now in profit of about 28 crores. AVNL had a loss of Rs 164.33 crore, which is now in profit of Rs 33.09 crore. IOL was in loss of Rs 5.67 crore, is now in profit of 60.44 crore. YIL was in loss of 348.17, its loss has come down to Rs 111.49 crore. AWEIL is in profit of Rs 4.84 crore after recovering from a loss of Rs 398.5 crore. GIL has posted a profit of Rs.13.26 crore by making a loss of Rs.43.67 crore. TCL was initially in loss of Rs 138.17 crore, which is now in profit of Rs 26 crore.

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Transformative step
Companies have saved 9.48 per cent in the first six months by cutting down on non-productive activities. Defense expert Shiv Aroor says that the trade figures of defense companies formed after disbanding the Ordnance Factory Board (OFB) are very encouraging.