Denel Group division Pretoria Metal Pressings (PMP) has partnered with the Ohotnik group in Russia to deliver commercial ammunition to the Russian market.
Denel PMP said this is the first foray into non-traditional markets and augurs well for growth in the region going forward.
The company told defenceWeb that its relationship with Ohotnik dates back to April 2014. “Since then the relationship has grown to a point where three containers of ammunition have been delivered and follow-up ammunition orders are being received on a regular basis.”
The partnership with Ohotnik paved the way for PMP to start exporting hunting and sporting ammunition to the Russian market, as the company has been in this market for more than 15 years, specialising in categories such as outdoor clothing, weapons and ammunition.
Ohotnik has various outlets, including three shops in Moscow, a large warehouse for arms and ammunition outside Moscow and a wide dealer network into Russia, co-operating with 200 companies in many cities within that country.
“A cardinal issue was also that their consumption patterns and requirements fit in well with the ability of PMP to manufacture in time for both exports and the ability to serve the local hunting market. Hence the arrangements make it possible for PMP to meet the demands of the local Southern African market,” Denel PMP said.
Ohotnik has been promoting Denel PMP’s products in Russia through advertising, shooting competitions, consumer participation and feedback, participation in trade shows and promotional articles in hunting and other magazines. “PMP’s excellent quality products also contributed to ensure that market penetration was faster than anticipated,” the company said.
Denel PMP is mainly exporting hunting ammunition to Russia, but indicated that handgun ammunition is on the cards.
The company noted that being part of the BRICS (Brazil, Russia, India, China and South Africa) group smoothed relationships and eased issues such as permit applications, visas, shipping arrangements, etc.
Apart from the success with Ohotnik, some of PMP’s recent highlights are, according to the latest Denel annual report, getting the first export orders for 20×42 mm Inkunzi weapons and ammunition, manufacturing the demonstrator of the Inkunzi Strike automatic weapon and integrating NAMMO 12.7 mm multi-purpose projectiles into PMP manufactured cartridge cases as part of the strategic alliance with NAMMO.
For the 2015/16 financial year, PMP brought in R503 million in revenue, but made a loss of R61 million. This compares to R828 in revenue in 2014/15 and earnings before interest and tax of R38 million.