India initiates process of restructuring of defence factory network

by Jon Grevatt

The Indian Ministry of Defence (MoD) has issued a tender seeking assistance in support of its planned corporatisation of military production units under the Ordnance Factory Board (OFB), India’s most expansive defence industrial enterprise.

The recently released ‘Expression of Interest cum Request for Proposal’ seeks the selection of a consultant to provide “strategic management services” to facilitate a shift in the structure of the OFB, which has been in operation for nearly 250 years.

The Indian MoD has issued a tender in support of its bid to corporatise the state-owned Ordnance Factory Board. The enterprise specialises in developing and producing land systems such as this 155 mm/45 calibre Sharang towed gun. (Janes/Akshara Parakala)

The Indian MoD has issued a tender in support of its bid to corporatise the state-owned Ordnance Factory Board. The enterprise specialises in developing and producing land systems such as this 155 mm/45 calibre Sharang towed gun. (Janes/Akshara Parakala)

According to the tender, which was published by the MoD’s Department of Defence Production (DDP), the consultant will assist the DDP to determine “the best-suited model for converting the OFB into one or more corporate entities in light of existing financial, legal, operational, and economic scenarios”.

The scope of work under the tender includes the creation of a “five-year strategic vision and roadmap” for the OFB and to determine the optimum structure for the enterprise, including the possibility of converting it into a single company or multiple corporate entities.

It will also define and restructure the OFB’s senior leadership model as well as look to increase the turnover and profitability of the enterprise. Other priorities include supporting the OFB in the facilitating of the “timely supply [of equipment] to the Indian armed forces” and to provide “greater incentives for exports”.

The tender indicated that the DDP would look to start restructuring the OFB in 2021.

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The Indian Ministry of Defence (MoD) has issued a tender seeking assistance in support of its planne...

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