SWOT Analysis

Strengths: The region has strong support from Government of Maharashtra, industrial growth and setting up of new facilities to promote industrialization of the state. It has good amount of land available and advanced infrastructure. With proximity to ordnance factories within the range of 300 Km, the ecosystem is quite conducive to manufacturing.

Weakness: Project execution and regular commercial production startup of Defence products take much more time. There exists a missing link between Defence research institutes and SMEs. It is need of the hour to have accredited world class testing facility for ammunition & aviation, R&D facility. Lack of dedicated courses in mechatronics high energy materials, armament sensors & electronics, metallurgy, skill development initiatives hampers the technical skills of the region

Opportunities: Defence, in the Vidarbha region, has limited vendors in production and many of the tendering actions result in single offer against the government tenders. In such cases, the actual users have limited purchase powers, the approval for acceptance lies with the Apex Authority at corporate level. SME’s have a budding opportunity to set up ancillary units. With high concentration of Defence and its related industries present in Vidarbha, there is a need for dedicated cluster for Defence production to promote industries in Aviation, Aerospace, Ammunition and automobiles. Given the case of new Defence production policy along with presence of high energy material production units, MRO and due to modernization of Ordnance Factories, tremendous scope exists to armament industry also through capital acquisitions & offsets and revenue acquisitions as per Defence procurement policy

Threats: Ordnance Factories (OFs) and Defence PSUs (DPSUs) import High Explosives and accept the same based on foreign suppliers’ test certificates without actual testing at receipt. ln the process, these DPSU organizations do not create the desired testing facilities which have become major bottleneck in testing for indigenously produced materials. Rapid advancement done by Hyderabad based industries in precision engineering equipment's, electronics, data analytics

Trends Futuristic battles shall be network centric & will be controlled electronically combined with space encounters. Make in India campaign targets $100 billion worth opportunities, also targets public and private companies manufacturing Defence equipment. Maharashtra state govt. has decided to set up a special offset fund of INR 1000 crore to help Defence equipment manufacturing firms scale production.