Nibe Limited has announced a significant development in its defense sector expansion, with its subsidiary Nibe Defence and Aerospace Limited (NDAL) receiving approval for firearms manufacturing from the Ministry of Home Affairs. This strategic milestone marks the company's formal entry into the defense manufacturing and proof-testing sector under the provisions of the Arms Act, 1959.

License Details and Regulatory Framework

The Ministry of Home Affairs, Government of India, has granted NDAL the license for manufacturing and proof testing of firearms and ammunition under the Arms Act, 1959, Arms Rules, 2016, and related notifications. This regulatory approval enables the subsidiary to operate within the established legal framework for defense manufacturing in India.

Manufacturing Capabilities and Product Range

The license authorizes NDAL to manufacture a comprehensive range of firearms and related components, positioning the company strategically within the defense sector. The approved manufacturing scope demonstrates the subsidiary's potential to serve various defense requirements.

The license covers the following products and components:

• Pressure-bearing parts and components including barrels, slides, cylinders, bolts, breech locks, and firing pins
• 9mm Parabellum pistols and standard 9mm pistols
• Manufacturing machinery for 5.56 X45 mm firearms
• Machine guns and rifles
• Associated proof-testing equipment and systems

Strategic Impact and Implementation Timeline

This license represents a significant strategic milestone for Nibe Limited, formally establishing the company's presence in the defense manufacturing sector. The approval enables NDAL to participate in the growing defense manufacturing market and contribute to India's defense capabilities through domestic production.

Under the license terms, NDAL must establish the necessary infrastructure within a specified timeframe. The subsidiary is required to construct factory premises and set up plant and machinery within seven years of the license grant, ensuring proper implementation of the manufacturing capabilities.

Regulatory Compliance and Disclosure

Nibe Limited has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, by informing both BSE Limited and National Stock Exchange of India Limited about this development. The company has provided comprehensive details about the license approval, its impact, and implementation requirements as mandated by regulatory guidelines.

Nibe Limited, a defence engineering firm, announced that it has secured a substantial order worth ₹292.69 crore from the Indian Army. This significant contract marks another milestone for the Pune-headquartered company in the defence sector.

Order Details and Specifications

The comprehensive order encompasses manufacturing and supplying critical components for a universal rocket launcher system. The contract includes:

The universal rocket launcher system is specifically designed to integrate multiple rocket types, including long-range variants with strike capabilities extending up to 150 km and 300 km. This versatility makes it a valuable addition to the Indian Army's artillery capabilities.

Contract Terms and Financial Obligations

As part of the contract requirements, Nibe Limited must fulfill specific financial guarantees to ensure project completion. The company will be required to furnish a performance-cum-warranty bank guarantee equal to 10% of the total contract value, including all applicable taxes and duties, within 30 days of signing the agreement.

The company has clarified that the promoter, promoter group, or group companies have no interest in the entity that awarded the contract, ensuring transparency in the procurement process.

Strategic Significance and Market Impact

This latest order reinforces Nibe Limited's growing presence in the defence sector and demonstrates the company's capability to handle large-scale military contracts. The contract value of ₹292.69 crore represents a significant business win for the aerospace and defence company.

The order builds upon the company's expanding portfolio in advanced defence systems, highlighting its technological capabilities in manufacturing sophisticated military equipment. The 12-month execution timeline indicates the company's readiness to deliver complex defence solutions within specified timeframes.