VFJ plans to expand local auto component supply for T-72 tank overhauls in MP

Indore: With the commencement of T-72 tank overhauls, the Vehicle Factory Jabalpur (VFJ) is seeking to expand its local auto component vendor base within Madhya Pradesh. This move aims to reduce reliance on outstation suppliers, thereby cutting down logistics costs and transit time, and stimulating growth in the auto component sector across the state.

Sanjeev Kumar Bhola, chief general manager of VFJ said, "We need new suppliers as the overhauling of T-72 has started at VFJ. Most components are sourced from Tamil Nadu, but now the need is to set up a vendor base within Madhya Pradesh. This will help in boosting the auto component sector in the state."

In addition to the tank overhauls, VFJ is planning to expand its offerings to include mine-protected vehicles and enhance its manufacturing capabilities with an investment of approximately Rs 600 crore in a new dedicated tank overhauling facility. The goal is to complete the overhaul of two T-72 tanks by Dec 2025.

Commenting on the implications of this initiative, Rohit Patel, owner of an auto component manufacturer said, "This is a significant opportunity for small and medium enterprises in Madhya Pradesh. With VFJ's push to source locally, we can enhance our production capabilities and create more jobs. It's a win-win situation that could elevate the entire industry's profile in the state."

Currently, less than 20 per cent of the auto component units in Madhya Pradesh supply to govt setups and firms involved in manufacturing for the armed forces. However, with an estimated turnover of over Rs 1,000 crore among local manufacturers, the expansion of the vendor base could help change the landscape of the state's auto component industry.

As VFJ moves forward with its plans, the local auto components sector stands on the brink of a potential revival, fostering an environment that could lead to increased collaboration and innovation within the industry.