Armoured Vehicles Nigam Limited has accomplished 100% indigenization of MBT Arjun engines. (File photo)
New Delhi: The defence minister, Rajnath Singh, has approved Miniratna “Category I” status for three defence public sector undertakings: Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL). Singh congratulated these companies for their remarkable transformation from government organisations to profitable corporate entities within just three years.
The defence minister expressed satisfaction with the management initiatives undertaken by MIL, AVNL, and IOL to boost company turnover, maximize indigenization, and meet performance parameters required for Miniratna “Category I” designation.
Munitions India Limited Shows Stellar Growth
MIL has achieved remarkable milestones since its inception, recording extraordinary sales growth from ₹2,571.6 crore in the second half of 2021-22 to ₹8,282 crore (provisional) in financial year 2024-25.
The company's export performance has been particularly impressive, surging from ₹22.55 crore in the second half of FY 2021-22 to ₹3,081 crore in FY 2024-25 (provisional). MIL manufactures small, medium, and high-calibre ammunition, mortars, rockets, and hand grenades, with in-house production of initiatory compositions, propellants, and high explosives.
AVNL Achieves Complete Engine Indigenization
Armoured Vehicles Nigam Limited has demonstrated significant growth, with sales rising from ₹2,569.26 crore in the second half of 2021-22 to ₹4,986 crore (provisional) in FY 2024-25.
AVNL has accomplished 100% indigenization of engines across all three platforms: T-72, T-90, and BMP-II. The company produces armoured and combat vehicles including T-90, MBT Arjun, and infantry combat vehicle BMP-II Sarath, alongside support vehicles and defence mobility solutions, such as Stallion and LPTA systems.
India Optel Limited Triples Revenue
India Optel Limited has substantially increased its sales over three years, growing from ₹562.12 crore in the second half of 2021-22 to ₹1,541.38 crore (provisional) in FY 2024-25.
IOL specializes in opto-electronic systems and vision equipment used in land system platforms and weapons, including battle tanks T-90 and T-72, infantry combat vehicle BMP-II, artillery guns, and naval guns.
Strategic Transformation
The Miniratna status will further empower these companies to achieve accelerated growth and reach new heights in defence production and exports. This recognition comes as part of a broader strategic transformation that saw the erstwhile Ordnance Factory Board converted into seven DPSUs on October 1, 2021, to enhance functional autonomy, efficiency, and unleash growth potential and innovation.
MIL and AVNL operate as “Schedule A” DPSU, while IOL functions as a “Schedule B” DPSU under the administrative control of the Department of Defence Production (DDP).
