Munitions India Receives Export Orders Worth ₹6,000 Crore, Expects Surge in Defence Exports

Munitions India, a leading ammunitions maker, is set to witness a significant boost in its export orders, with commitments worth ₹6,000 crore. The Pune-based company, which was established in November 2021 as part of the reorganization of the Ordnance Factory Board into seven Defence Public Sector Undertakings (PSUs), specializes in the production of bullets, shells, mortars, rockets, and hand grenades. This surge in export orders is evidence of the growing global demand for India's defence products. Growing Demand for Indian Defence Products According to Gnaneshwar Tyagi, Chief General Manager of the High Energy Projectile Factory at Munitions India, the company's products are highly sought after by various countries. He mentioned that the United Arab Emirates (UAE), Vietnam, and an undisclosed European country are among their prominent overseas customers. This surge in demand has positioned Munitions India as a key player in the global defence market. Promising Outlook for Indian Defence Exports The export orders received by Munitions India are indicative of the overall positive trend in India's defence exports. Raj, the Joint Director of the Export Promotion Cell in the Department of Defence Production, Ministry of Defence, believes that India's defence exports will exceed ₹20,000 crore in the fiscal year 2023-24. This growth trajectory is expected to continue, with estimates of ₹25,000 crore in 2024-25 and ₹35,000 crore in the subsequent year. The presentation by Dr Sanjeev Kumar Joshi, Deputy DEO of Brahmos Aerospace, further highlighted the global demand for India's defence products. Reduction in Imports and Strengthening of the Domestic Defence Industry India's defence sector has witnessed a significant shift in recent years, with a decreasing imports-to-exports ratio. While imports of defence products increased from ₹41,198 crore in 2013-14 to ₹50,061 crore in 2021-22, exports surged from ₹1,153 crore to ₹12,815 crore during the same period. This reduction in the imports-to-exports ratio indicates the growing self-reliance and strengthening of the domestic defence industry. Expansion of Munitions India's Product Range Munitions India is set to expand its product range by introducing the production of 125-mm 'mango' tank shells, capable of penetrating a 600mm thick tank skin. This initiative is part of the company's efforts to enhance its capabilities and cater to the evolving needs of the defence sector. The production of these tank shells, licensed from Russian armament major Techmash, will be carried out at Munitions India's manufacturing unit in Tiruchi, Tamil Nadu. Collaboration with MSMEs and Economic Growth Munitions India's success also has a positive impact on the Indian economy. The company procured approximately ₹1,000 crore worth of materials from 2,000 Micro, Small, and Medium Enterprises (MSMEs) in the previous year. The production of the Mango tank shells alone is expected to require ₹150 crore worth of materials from MSMEs. This collaboration not only contributes to the growth of the defence sector but also boosts the overall development of the MSME ecosystem in India. The Way Forward With a robust order book and a promising outlook for defence exports, Munitions India is well-positioned to strengthen its foothold in the global market. As the Indian defence industry continues to grow and evolve, the country's self-reliance in defence production is expected to reach new heights. The surge in export orders for Munitions India underscores the recognition and trust placed in India's defence capabilities. The company's expansion plans and collaboration with MSMEs further contribute to the country's economic growth, making it a significant player in the global defence arena.