Profits up, gaps remain: OFB overhaul yields mixed results three years on

Since the corporatisation of the Ordnance Factory Board, profits are up, the order book is looking healthy in parts, but export gaps persist

Nearly three and a half years after the Ordnance Factory Board (OFB) was corporatised, merging 41 production units into seven new defence public sector undertakings (DPSUs), a report presented by the Parliamentary Standing Committee on Defence last week highlighted encouraging profitability. However, a closer look at the data points to uneven future prospects, variations in projected order books, and differences in export performance.  

While six of the seven DPSUs reported profits in 2023-24 (FY24), one remained in the red, and only two managed to establish any discernible export presence. Also, at least one of the DPSUs showed limited prospects for