Keeping pace with the trend of market-driven strategies of the corporate world, the Ordnance Factory is turning business-savvy. For, it is planning to set up a marketing corporation, which will exploit opportunities in both India and abroad for goods & products that the factory produces for civil consumption. The new arm will also be responsible for widening the export market for defence-related equipment.
According to officials in the Ordnance Factory, plans are afoot for setting up such a corporation under the Ordnance Factory Board (OFB), Department of Defence Production.
In another development, OFB has switched over to e-procurement in a phased manner from September for purchases above Rs 10 lakh. Complete switching over to e-procurement is expected to be done by March-end next year. ?Implementation of e-procurement will increase the transparency and efficiency in the purchases done by various factories/units of the OFB,? said defence ministry officials.
In fact, several steps have been taken in order to increase the export of arms and ammunitions. These include, introduction of online response through dedicated e-mail; provision of e-mailable and printable product CD; continuous product promotion in Military Technology & Janes International Defence Review magazines and Participation in international exhibitions.
?We are exporting our products to Nepal and friendly countries in Africa and south-east Asia. In 2001, the export figure was around Rs 11 crore. Since then, there has been a constant upward trend, as we are concentrating on broadening our customer base,? said officials. During 2005-2006, items worth Rs 1247 crore (18.09% of the total issues) were sold to non-defence customers.
The quality audit report shows that on an average, performance level of the factories have increased from 51% in 2004-05, to 73.65% in 2006-07. In 2004-5, orders worth Rs 135 crore were bagged. However, all could not be delivered due to political crisis in Nepal, thus, resulting in a decline in the export figures.
The Ordnance Factory Board has been exporting some of their products for several years after meeting domestic requirements. Currently, arms & ammunition, weapon spares, chemicals & explosives, parachutes and leather & clothing items are being exported to more than 30 countries, including Thailand, Malaysia, Indonesia, Sri Lanka, Bangladesh, Germany, Belgium, Turkey, Egypt, Oman, Israel, Kenya, Nigeria, Botswana, Chile, Surinam and the US.