Nibe Limited has entered into a supply contract with the Indian Army under the Ministry of Defence for the manufacturing and supply of ground equipment, accessories, ESP and ammunition for a universal rocket launcher system. The total consideration for the contract is INR 2.93 billion, inclusive of all taxes and duties.
The contract relates to a universal rocket launcher system designed to integrate multiple rocket types, including rockets capable of striking targets at ranges of 150 kilometres and 300 kilometres. The scope of work includes manufacturing and supplying ground equipment, associated accessories, ESP and ammunition required for the system.
As part of the contractual terms, Nibe will be required to furnish a performance-cum-warranty bank guarantee equivalent to 10 percent of the total contract value, including taxes and duties. The guarantee is to be submitted within 30 days of signing the agreement, the company disclosed.
The execution of the contract will be carried out in tranches, with deliveries scheduled to be completed within 12 months. The company did not disclose tranche-wise quantities or delivery milestones in its filing.
The order adds to Nibe’s defence manufacturing portfolio at a time when procurement by the Indian armed forces continues to emphasise domestically manufactured systems. However, the company has not provided any financial guidance on the impact of the contract on revenues or margins, nor has it indicated whether additional capital expenditure will be required to execute the order.
Nibe Limited is engaged in manufacturing activities and operates from its facility in Chakan, Pune, Maharashtra.
