VFJ gets just 10% supplies from state vendors amid lack of advanced manufacturing in MP
Vehicle Factory Jabalpur
(
VFJ
), a key production unit under the ministry of Defence, gets not more than 10 per cent of its annual component procurement from Madhya Pradesh-based vendors. The remaining 90 per cent of crucial automobile and defence-grade components continue to come from states like Tamil Nadu and other states, owing to the absence of local firms with advanced manufacturing capabilities.In the fiscal year 2024-2025, VFJ's annual procurement stood at Rs 2000 crore.
VFJ manufactures a wide range of vehicles, including Stallions, Mine Protected Vehicles (MPVs), and Light Military Trucks (LPTAs) for the Indian Armed Forces. The factory also began overhauling T-72 tanks to meet the growing demand for upgraded battle-ready platforms. Yet, most components used for these high-end operations are imported from outside the state."We annually spend close to Rs 2000 crore in procuring components from vendors, but the share from MP remains below 10 per cent. This is not due to a lack of intent, but due to the absence of vendors meeting the defence sector's stringent quality and technology benchmarks in the state despite having a lot of potential," said VFJ chief general manager Sanjeev Kumar Bhola.Highlighting the untapped potential in the region, VFJ is now actively scouting for collaborations with manufacturers in
Madhya Pradesh
. "Partnering with local vendors can significantly reduce logistics costs and help us streamline production schedules," Bhola said.Industry experts highlight that currently, less than 20 per cent of auto component units in Madhya Pradesh engage with govt setups or firms involved in manufacturing for the armed forces. The local auto component manufacturing sector has an estimated turnover exceeding Rs 1000 crore, indicating significant growth potential.Pithampur Audhyogik Sangathan president Gautam Kothari said, "It's a growing sector and industries are willing to be part of it, but norms are stringent.
A proper technical know-how and platform is required to guide industries in the right direction."
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