Machine Tool Prototype Factory, situated at Ambarnath, Thane, 65 km from Mumbai, was set up in 1953 in technical collaboration with M/s Oerlikon Machine Tool Works, Switzerland for design, development and manufacturing of Machine tools. The factory was inaugurated by the prime minister late Pandit Jawahar Lal Nehru. It is spread in 38 Acre with 48 buildings.
The purpose to establish Machine Tool Protype Factory was to equip ordnance factories with machine tools but gradually it diversified and started the production of vehicle gear boxes, gear boxes for Arty equipments & Tanks, ammunition stores, civil trade items (revolvers), Kavach and sub-assembly of Project Dhanush.
Various types of Gear Boxes for T-90 & T-72, BMP-II, L-70 Gun, 155mm, 105mm Artillery Gun and their spare parts Centre of excellence for Development and Indigenisation of various types of Electronic Fuzes Design, development & manufacturing of multi barrel rocket Chaff Decoy System ‘KAVACH’ Mod II.