Defence PSU showcases India-made munitions at Prague show amid scrutiny after official's arrest

Munitions India Ltd, or MIL, is a state-owned defence public-sector undertaking headquartered in Pune. It is one of seven defence companies created from the former Ordnance Factory Board. MIL’s main role is to manufacture ammunition for India’s armed forces and to sell selected products overseas.

Its product range covers several battlefield needs. The company makes tank rounds, bombs and rockets, along with a wide range of other ammunition. This broad portfolio helps MIL serve different military platforms and missions rather than relying on one product line.

MIL is also an important defence exporter. Its exports were around ₹4,000 crore last year, while its 2025-26 revenue reached a record ₹10,954 crore. The company is now displaying indigenous products in Prague to attract foreign buyers, even as a corruption investigation brings renewed attention to its oversight.

MIL displayed its India-made ammunition at the Future Forces Exhibition and Forum in Prague to reach international customers. The event, held from October 21 to 23, brought defence and security companies together in the Czech Republic. MIL joined Yantra India Ltd and Bharat Electronics Ltd among the Indian exhibitors.

The company’s approach is straightforward. It presents indigenous military products directly to foreign buyers, using a major trade show to strengthen visibility and develop export opportunities. MIL manufactures tank rounds, bombs, rockets and other ammunition, giving it several product categories to promote.

The effort supports a wider government priority to increase defence exports. MIL’s exports were around ₹4,000 crore last year. The company is pursuing overseas growth despite scrutiny following arrests in an alleged bribery case linked to a ₹500-crore ammunition contract.

The CBI is investigating an alleged corruption and bribery case connected to a ₹500-crore ammunition contract involving MIL. The arrests have placed the company’s internal oversight and accountability under scrutiny. The investigation concerns alleged wrongdoing, not a finding that MIL as a whole committed corporate misconduct.

Three people named in the case were arrested on October 14. They are MIL executive director Anil Kumar, his brother B Harshavardhan and Ashish Kansal, the chief executive officer of private defence company SMPP Ltd. SMPP manufactures ammunition, loitering munitions, bullet-proof jackets and helmets.

The Department of Defence Production is closely tracking the case. The allegations may damage MIL’s reputation, but officials stressed that allegations against one executive do not establish corporate wrongdoing. The company is expected to face a clean-up and renewed push for accountability.

MIL is a major defence manufacturer by both profitability and scale. In 2025-26, it recorded profit after tax of ₹1,250 crore, the highest among the seven companies formed from the former Ordnance Factory Board. Together, those seven companies earned ₹2,801 crore.

MIL’s revenue reached a record ₹10,954 crore in 2025-26, a 33% increase over the previous year. Its exports stood at around ₹4,000 crore last year. The company also had an order book worth ₹42,864 crore as of April 1, 2026, giving it substantial future business.

These figures explain why MIL is seeking more overseas customers at the Prague trade show. They also make the corruption allegations especially significant. The company is performing strongly, but it must now protect its reputation and strengthen oversight while pursuing further export growth.

The corruption allegations create reputational concerns for MIL, even though officials said misconduct by one executive does not establish wrongdoing by the entire company. The Department of Defence Production is closely monitoring the case. MIL is expected to undergo a clean-up and renewed effort to improve accountability.

SMPP Ltd faces a more direct procurement risk. The company could be suspended or debarred from government contracts under defence procurement rules because its CEO, Ashish Kansal, was arrested in the case. However, SMPP was not included in the ministry’s October 19 list of 22 firms barred or suspended.

That omission may not be final. Officials said the list is periodically reviewed and SMPP could appear in a later update. The government can suspend dealings while an inquiry continues, ordinarily for up to one year, or longer in exceptional national-security cases.

Defence procurement rules protect government contracting by allowing action before a corruption inquiry is complete. The government may suspend business dealings with an entity when allegations require investigation. This prevents the company from continuing to receive government work while officials examine the facts.

Suspension can begin when a complaint is referred to the CBI or another investigating agency. It can also follow official notice that a criminal investigation has started. The rules therefore create an immediate safeguard, rather than waiting for a final court outcome or a completed departmental inquiry.

The ordinary suspension period does not exceed one year. In exceptional cases involving national security, the government may impose a longer ban. Debarment is a stronger restriction that blocks a firm from government business. SMPP could face either action after the allegations are assessed.

The article does not explain why the former Ordnance Factory Board was reorganised. It states only that seven defence companies were carved out of it five years ago. They include MIL, Yantra India Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, India Optel Ltd, Armoured Vehicles Nigam Ltd and Gliders India Ltd.

The reported structure gives separate companies distinct business identities and allows their results to be measured individually. MIL’s performance illustrates this clearly: it recorded the highest profit among the seven, while the group’s combined profit reached ₹2,801 crore. The article does not state that this was the reform’s intended mechanism.

The reorganisation’s connection to exports is presented through results and policy goals. MIL exported around ₹4,000 crore last year, while India targets ₹50,000 crore in defence exports by 2029-30. The government is prioritising export growth, but the article does not provide further reform details.