The factory is a joint venture between three companies.

The Ordnance Factory

Board (OFB) owns the controlling stakes of 50.5% while Kalashnikov owns 42%
stake followed by 7.5% stake owned by Rosonboronexport. An Indian CEO from the
Indian Army leads the company.[2]

Background[edit]
Since the late 1950s, the Indian armed forces had been equipped with a locally
produced licensed copy[3] of the L1A1 self-loading rifles.[4] In mid-1980s, the decision
was taken to develop a 5.56×45mm NATO calibre rifle to replace the obsolete rifles.
Trials on various prototypes based on the AKM were carried out by the Armament
Research and Development Establishment (ARDE) in Pune. On the completion of
the trial, The Indian Small Arms System (INSAS) was adopted in 1990. However, to
phase out the still in use bolt-action Lee–Enfield rifles as quickly as possible, India
had to acquire 100,000 7.62×39mm AKM-type rifles from Russia, Hungary, Romania
and Israel in 1990–92.[5]
In April 2015, the Indian government replaced some INSAS rifles of the CRPF with
AKM variants.[6] In early 2017, it was announced that INSAS rifles were to be retired
and replaced by rifles capable of firing 7.62×51mm NATO cartridges.[7]
The factory is located in Amethi, Uttar Pradesh.[8] The factory manufactures the AK-
203 variant of the Kalashnikov family of rifles.[9] The AK-203 along with the SIG716,
manufactured with by United States-based SIG Sauer will replace the INSAS rifles
as well as the AK-47s.[10] The Government of India is also in negotiations with Abu
Dhabi-based Caracal International to acquire the CAR 816 close-quarter carbine.[2]

Product[edit]
The company has been licensed to produce 750,000 AK-203 assault rifles
chambered for 7.62×39mm. The AK-203 is a modernized 200 series AK-103 variant
and one of the modern derivatives of the Russian AK-Pattern series of assault rifles.
The 200 series are technically based on the AK-100 family and the more
expensive AK-12 rifle family.[1][11] The AK-203 is reported as the latest and most
advanced version of the most abundant firearm in the world, the AK-47 assault rifle.[12