After reviewing requirements of Propellant for high caliber ammunitions via-a-vis then capacities available in 1969-70 in Chemical Ordnance Factories, a new propellant factory was considered necessary and OFI was set up. OFI manufacture Double, Triple and Ball Powder base Propellant Under Integrated Guided Missile Development Program (UIGMDP) of DRDO. The IS/ISO-9001:2015, 14001:2015 certified
Factory’s production activities range from making propellants of Gun Ammunitions, Ball Powder for small arm ammunitions and Picrite, intermediaries, like nitric acid, sulphuric acid, Nitrocellulose and Nitroglycerine to propellants for integrated guided missiles viz. Pinaka, Trishul, Pechora, Milan, RZ-61, Akash and Nag. Safety & Human Resource Development are the basic & vital concerns of the factory. Research & Development are the areas of its endeavor.