Vapnope
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Jon Grevatt, Bangkok 06/08/2019
India’s Ordnance Factory Board says it has concluded its largest-ever single export order
The USD45.75 million deal involves the sale of 155 mm high-explosive projectiles to the UAE
India’s state-owned Ordnance Factory Board (OFB) has received its largest-ever defence export contract: a deal worth USD45.75 million to sell munitions to the United Arab Emirates (UAE), the Indian Ministry of Defence (MoD) has announced.
The MoD said in a recent notice that the export contract features the sale of 50,000 155 mm high-explosive projectiles and accessories. The MoD described the deal, which was concluded in June, as the OFB’s “largest-ever single export order”.
The new order reportedly follows a deal in 2017 through which the OFB supplied the UAE with 40,000 artillery shells.
In September 2018 former chairman of the OFB, P K Shrivastava, said the defence enterprise was aiming to achieve exports worth about INR10 billion (USD141 million) within the ensuing two years. He said the target represented a fourfold increase over the INR2.5 billion in exports secured in 2017.
Supporting its export objectives, the OFB has recently completed an “international road show” to inform the Indian government’s defence embassies and attachés around the world about its capabilities and products.
The export push has also been supported by an Indian government programme to modernise the OFB’s production facilities. The Indian MoD annual report for 2018–19 said it had approved 15 proposals from the OFB, worth INR8.6 billion, to upgrade and modernise its production equipment.
The OFB operates 41 defence factories across India and specialises in developing and producing weapons, ammunition, missiles, and military vehicles, primarily for the Indian Army. In terms of exports, sales have traditionally included firearms, ammunition,and explosives, mostly to developing markets in Africa, Asia, the Middle East, and South America.
Analysis
A new online portal – or ‘dashboard’ – managed by the MoD’s Department of Defence Production shows that Indian defence exports are expanding quickly.
The dashboard shows that up until 31 July 2019 the value of Indian defence export approvals in fiscal year 2019–20 (FY 2019–20) was INR34.17 billion. The export target for FY 2019–20 is INR150 billion. The dashboard also shows that defence exports in FY 2018–19 reached INR107.45 billion: a 129% increase over exports in FY 2017–18.
However, the dashboard also shows that India is increasingly reliant on the private sector to meet export targets. In FY 2019–20 and FY 2018–19 private-sector companies in India secured about 90% of total defence exports in each year, with state-owned enterprises such as the OFB winning the remainder.
In FY 2017–18 private-sector companies secured 68% of total exports and one year earlier won just 13% of export contracts, with state-owned companies winning the remainder.
https://www.janes.com/article/90296/india-s-ofb-wins-its-largest-ever-export-deal
India’s Ordnance Factory Board says it has concluded its largest-ever single export order
The USD45.75 million deal involves the sale of 155 mm high-explosive projectiles to the UAE
India’s state-owned Ordnance Factory Board (OFB) has received its largest-ever defence export contract: a deal worth USD45.75 million to sell munitions to the United Arab Emirates (UAE), the Indian Ministry of Defence (MoD) has announced.
The MoD said in a recent notice that the export contract features the sale of 50,000 155 mm high-explosive projectiles and accessories. The MoD described the deal, which was concluded in June, as the OFB’s “largest-ever single export order”.
The new order reportedly follows a deal in 2017 through which the OFB supplied the UAE with 40,000 artillery shells.
In September 2018 former chairman of the OFB, P K Shrivastava, said the defence enterprise was aiming to achieve exports worth about INR10 billion (USD141 million) within the ensuing two years. He said the target represented a fourfold increase over the INR2.5 billion in exports secured in 2017.
Supporting its export objectives, the OFB has recently completed an “international road show” to inform the Indian government’s defence embassies and attachés around the world about its capabilities and products.
The export push has also been supported by an Indian government programme to modernise the OFB’s production facilities. The Indian MoD annual report for 2018–19 said it had approved 15 proposals from the OFB, worth INR8.6 billion, to upgrade and modernise its production equipment.
The OFB operates 41 defence factories across India and specialises in developing and producing weapons, ammunition, missiles, and military vehicles, primarily for the Indian Army. In terms of exports, sales have traditionally included firearms, ammunition,and explosives, mostly to developing markets in Africa, Asia, the Middle East, and South America.
Analysis
A new online portal – or ‘dashboard’ – managed by the MoD’s Department of Defence Production shows that Indian defence exports are expanding quickly.
The dashboard shows that up until 31 July 2019 the value of Indian defence export approvals in fiscal year 2019–20 (FY 2019–20) was INR34.17 billion. The export target for FY 2019–20 is INR150 billion. The dashboard also shows that defence exports in FY 2018–19 reached INR107.45 billion: a 129% increase over exports in FY 2017–18.
However, the dashboard also shows that India is increasingly reliant on the private sector to meet export targets. In FY 2019–20 and FY 2018–19 private-sector companies in India secured about 90% of total defence exports in each year, with state-owned enterprises such as the OFB winning the remainder.
In FY 2017–18 private-sector companies secured 68% of total exports and one year earlier won just 13% of export contracts, with state-owned companies winning the remainder.
https://www.janes.com/article/90296/india-s-ofb-wins-its-largest-ever-export-deal
