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Government Asks Bharat Forge, Mahindra to Scale Up Defence Production

Written by: Team Angel OneUpdated on: May 12, 2025, 2:46 PM IST
The government has asked Bharat Forge and Mahindra to step up production of defence gear like anti-drone weapons and armoured vehicles to meet growing needs.
Government Asks Bharat Forge, Mahindra to Scale Up Defence Production
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The Indian government has asked private defence manufacturers, including Bharat Forge and Mahindra & Mahindra, to increase the production of certain military equipment and ammunition, according to a report by The Indian Express. This includes items such as anti-drone and smart ammunition, and armoured vehicles.

These instructions are for additional supplies beyond what is already being produced by the public sector ordnance factories. A follow-up meeting with these companies is expected soon.

Bharat Forge’s Defence Work

Bharat Forge runs a major defence facility in Jejuri, Maharashtra. It has a contract with the Ministry of Defence to deliver 184 units of the Advanced Towed Artillery Gun System (ATAGS). The ATAGS was developed in collaboration with the Defence Research and Development Organisation (DRDO). It has a 155/52 mm calibre, a firing range of 48 km, and can move at 18 kmph. It uses an all-electric drive and can fire six rounds per minute. The gun system can operate with existing ammunition without modifications.

Mahindra’s Role

Mahindra holds a licence to manufacture small arms and ammunition. It also produces armoured and non-armoured vehicles for military use. Two of its known vehicles include the Marksman, for use in urban operations, and the Rakshak, an armoured utility vehicle.

Read more: Best Drone Stocks in India in May 2025: Zen Tech, RattanIndia, HAL and More – 5Yr CAGR Basis

Conclusion 

Earlier, the Indian Army had issued a request for information regarding the local manufacturing of 23mm anti-drone ammunition. 

India’s defence production reached ₹1.27 lakh crore in FY24. About 65% of the equipment was made domestically, compared to a time when 65-70% was imported. The private sector contributed 21% of total output. There are currently over 430 licensed private defence companies and around 16,000 MSMEs working in the sector, alongside 16 public sector units.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 12, 2025, 2:46 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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