Nibe Defence and Aerospace Limited (NDAL), a subsidiary of NSE-listed NIBE Limited, has also been granted an official licence to produce and test firearms and ammunition, a development that is likely to bring substantial change to the Indian private defence manufacturing industry. This licence is awarded to the company by the Ministry of Home Affairs, Government of India and is a significant milestone towards the company and its presence in the defence industrial base of the country.

Strategic expansion

The award of this licence pursuant to the provisions of the Arms Act of 1959 and the Arms Rules of 2016 is a formal introduction of Nibe into the specialisation of making firearms. Before this, Nibe was mainly recognised as an expert in the fabrication and machining of major defence systems components, which were of a major scale, like missile canisters and launcher systems. Under this new regulatory approval, the company is currently permitted to manufacture a broad range of small arms and related systems.

Based on the official disclosures, the licence includes the production of various key sets, such as 9mm pistols, specifically including 9mm Parabellum models, Assault Rifles and Machine Guns, which allows the company to fulfil the need of the armed forces as a core weaponry, Pressure-Bearing Components, critical parts, including barrels, slides, cylinders, bolts, and breech locks, necessary to the safety and effectiveness of the firearms, and Manufacturing Machinery, the right to produce the specialised machinery needed to produce and proof-test firearms in.

Strengthening and operational synergy

This can be compared to the objectives of the Indian government in its programme of Atmanirbhar Bharat (Self-Reliant India), where it aims to decrease the reliance on imports by developing a strong domestic defence ecosystem. Nibe is also on its way to becoming an end-to-end supplier in the small arms segment by obtaining the rights to produce and proof-test firearms. The company has already shown its interest in the indigenous design and development of the next generation weaponry and ascertained that the products would be of high quality to meet the demanding field-testing requirements by the Indian defence force.

The licence is also associated with infrastructural requirements. NDAL now has a responsibility to build its own factory plant and install modern plant and machinery within seven years after the award of the licence. This will be a long-term commitment that will see technological innovation and employment creation in the company’s base in Maharashtra.

Nibe is a logical extension into the production of firearms, and with its current levels of precision engineering, the firm can enter the market. The company is already in several verticals of defence, such as electronics, aeronautics, and space. With the addition of Small Arms to its portfolio, Nibe will be able to provide a more holistic set of solutions to its core clients, which are the Indian Army and other defence entities across the world.

Nibe has shown a strong operational momentum as it has already won a domestic contract of ₹293 crore in the Indian Army for universal rocket launchers. The introduction of a gun-making production line offers a new source of revenue and a change in the order book of the company, other than heavy structural fabrication. This diversification comes at a critical time because India is in the process of modernising its infantry equipment and is in search of strong domestic sources in high-stakes defence contracts.

Conclusion

Nibe Defence and Aerospace acquiring the firearms manufacturing and proof-testing licence is a milestone for the company and sets a precedent for the rest of the Indian defence sector. It also transforms the company into a full-fledged manufacturer of lethal defence systems rather than a component manufacturer. Since the establishment of its new production bases is about to start, the capability of Nibe to provide high-precision, localised manufactured small arms will be vital in supporting the strategic objectives of self-sufficiency and increased national security of India.