Private companies to start defence production

[pran80]

Saw this news item today.

http://www.financialexpress.com/news/In ... rs/582568/

Read a ticker on ET now today morning that Punj Llyod will commence production of small arms in Gwalior from 2011. Lets hope to see some quality weapons coming out of these factories.

[hvj1]

Small arms wont be too far behind,

[xl_target]

Indian firms are making high quality parts for prestigious firearms manufacturers like SIG and IWI. They also make parts for firms like Sarsilmarz and Meprolight.
While the private sector is quite capable of making world class firearms, the monopoly created by IOF and the government is what creates the current poor quality, high priced firearms available in the Indian market. It would a boon to Indian firearms enthusiasts if these companies were allowed to sell decent quality firearms on the domestic market.

I recently came across this article that should be interesting to readers of IFG:
http://www.thefirearmblog.com/blog/2010 ... -in-india/

[Sakobav]

xl_target

Its not surprising that Indian companies are providing parts thats an interesting blog good old Mehul baba has already graced that site and I think another member overunder too..
This would be great or is required because DRDO has its hands full frankly some of the biggest and richest companies in US are defense contractors so it makes sense that private companies want a piece of this pie and money makes the mare go.hopefully this could be the catalyst...Imagine how much money could Colt or S and W make from Indian civilian market even with the current restrictions?


Best



xl_target

Its not surprising that Indian companies are providing parts thats an interesting blog good old Mehul baba has already graced that site and I think another member overunder too..
This would be great or is required because DRDO has its hands full frankly some of the biggest and richest companies in US are defense contractors so it makes sense that private companies want a piece of this pie and money makes the mare go.hopefully this could be the catalyst...Imagine how much money could Colt or S and W make from Indian civilian market even with the current restrictions?


Best

[timmy]

There is clearly no lack of expertise in India for making good weapons. There does seem to be a lack of understanding regarding sound economics, however.

I think just about everyone here agrees with this: that IOF's monopoly is not a good thing. The lack of competition in this market sector practically ensures that there will be substandard products sold at outrageous prices, whether to the individual consumer or to the Defense establishment.

However, my own caution here is that the notion that unfettered free market, private sector approaches are not always a panacea. A balance must be struck, because private sector firms, if left to their own devices, can also cause great mayhem.

For instance, kickbacks to politicians and other officials for throwing a contract to a certain supplier are not unknown -- I'm recalling Bofors here. Secondly, for domestic production, the establishment of a plant in a certain political district will bring many high paying jobs, which is also a fertile area for back room shenanigans between politicians, officials, and private businesses (just as it is with state-run firms).

Right now, the problem is that too many eggs are clearly in one basket, with regard to arms manufacture. Whatever approach is tried (and, of course, we all hope RKBA will be an integral part of that approach), EVERYONE needs to be watched, so that no hands are sneaking into cookie jars. Governmental officials, politicians, and businessmen are all subject to the same motivations and passions - none is more honest or more evil than the other.

Personally, I would be delighted to see Indian arms marketed all over the world. There's no reason why they could not be competitive, given a free hand to conjure up innovative designs and manufacturing processes.

I would like to note that I am already a proud owner of a firearm made in India: my RFI 2A. So when it comes to Indian guns, you can, as the old advertisement slogan for Packard automobiles used to say, "Ask the man who owns one!"

[m24]

Found 2 Indian private players doing defence production. I think Punj Llyod was supposed to be third, but don't see anything on their website.

1) L&T

2) Mahindra - Only they seem to be interested in Small arms and ammo.

Regards

[The Doc]

Mahindra - Only they seem to be interested in Small arms and ammo.

So what now, a .22LR "Xylo Pistol" for you m24 ?

I do believe that the pvt companies will manufacture sporting arms for civilians. What will they manufacture exactly, what quality , how soon and what would be the price tag are some questions which probably everyone wants to ask .

best,

Rp.

[m24]

So what now, a .22LR "Xylo Pistol" for you m24 ?

Why not, Rp?? Atleast (hopefully) it'll be better than what IOF is doling out.

Regards

[The Doc]

Atleast (hopefully) it'll be better than what IOF is doling out.

Exactly ! Lets hope for the best.

Rp.

[shyboy]

if we can build rockets and satellites, a gun is like making a bolt or nut.
Leave it to the TATA's.

[m24]

if we can build rockets and satellites, a gun is like making a bolt or nut.
Leave it to the TATA's.

Unfortunately, I think, they are not interested.

Regards

[m24]

I take my word back about Tata's.

Source: Business Standard

India’s defence industry is poised at a landmark. On August 25, four Indian companies — three private and one public — will submit bids in the defence ministry’s first-ever ‘Indian industry only’ competition to develop a high-tech weapon system for the defence forces.

The four companies — Tata Motors; the Mahindra Group, L&T and the Ministry of Defence (MoD)-owned Ordnance Factory Board (OFB) — are competing to design and build 2,600 new-generation Future Infantry Combat Vehicles (FICVs) to replace the Indian Army’s aging fleet of Russian-designed BMP-IIs. In an American-style showdown, two of these vendors will be nominated to develop a prototype each and the winning design selected for the FICV.

As per Ajai Shukla:

There are three pitfalls that the private sector must avoid. First, the selected vendor(s) must not fall short of the army’s expectations, or in providing users with a development experience that contrasts tellingly with past experience with the DRDO and OFB. In this, a draw would be a loss; only an innings victory would suffice.

Secondly, the private sector must not front for foreign partners, who seek to bring in existing products through the back door. As the debutante private vendors step into the FICV arena, the spotlight will play unkindly on those clutching the arm of a muscular foreign partner.

Global arms majors have figured that a risk-free way of cracking India’s difficult procurement procedures is to partner an Indian company in a “Make” contract, and pass off existing products under the rubric of “joint development”. A top manager in one of the private companies vying for the FICV contract recounts, “I have received more partnership proposals for the FICV than I ever received for any other weapons platform.”

Reflecting this trend, private companies worry that the OFB is about to join hands with Russian export controller, Rosonboronexport, to “jointly develop” a variant of the tested BMP-3 ICV. To circumvent such a possibility, the private vendors must accept the developmental risk of proposing an FICV that is technologically beyond anything on the market today. They have been asked to develop a Futuristic ICV. The specifications they submit on the 25th must go well beyond avant-garde.

Thirdly, when history is written, the FICV will be less about who built it or how much profit was made. This chapter will be more about whether India’s private sector used this heaven-sent, MoD-funded opportunity to build its technological capability. Private sector managers argue that each technology decision — whether to develop or buy — should be treated as a business case. But this irreproachable commercial logic misses the significance of this turning point. The private sector’s success in grabbing the moment will be measured in the currency of technologies that were developed along with the FICV.

Regards