How Nibe Is Helping Boost India's Defence

'If you take any ministry of defence project, Nibe is up there, getting orders.'

Minister of State for Defence Ajay Bhatt inaugurated a production facility for a defence component manufacturer called Nibe in Pune last month.

This 250,000 square feet shop floor will produce components for a new generation of Indian weaponry -- Pinaka rocket launchers and medium range surface-to-air missiles (MR-SAMs).

These new weapons systems have been designed by the Defence Research and Development Organisation (DRDO), with large private companies such as the Tata Group, Larsen & Toubro (L&T) and the Kalyani Group as production partners.

Each of these big manufacturers co-opted dozens of smaller firms to feed into the final production line.

Nibe has grown quickly and is seeking a leadership role in organising micro, small and medium enterprises (MSMEs) in the industrial zones around Pune.

"We have been appointed knowledge partners to the defence exposition (DefExpo) being organised by the Maharashtra government for MSMEs. The smaller production units do not confine themselves to manufacturing for one or two big firms, says says Balakrishnan Swamy, chief technical officer, Nibe.

Instead, they feed into multiple production lines, maximising their output.

When L&T won the contract to build 100 K-9 Vajra self-propelled howitzers for the Indian Army, Nibe pitched to build the Vajra's hull and turret.

"Having begun as a Tier-2 company for L&T, we are in a position today to function as original equipment manufacturers (OEMs) for many technologies," says Swamy.

Encashing its close relationship with L&T, Nibe began fabricating large components for the modular bridges that are built by combat engineering units to cross canals and rivers on the battlefield.

The Swatantra bridge was developed by DRDO's Pune-based laboratory, Research and Development (Engineers).

They gave L&T the production order and Nibe won an order that made it a feeder shop to L&T.

"We do much of the contract manufacturing and heavy engineering fabrication for L&T. That is how we started our journey," says Swamy.

Meanwhile, the firm won a contract to build fuel storage tanks for Canada.

The Nibe facility is in discussion with US small arms (rifles, carbines and light machine guns) manufacturer, Sig Sauer, for setting up a production line for supplying to the Indian Army.

"We are dedicating 40,000 square feet of space to manufacturing Sig Sauer small arms, and another possible 20,000 square feet of mezzanine space. We have applied to the ministry of home affairs for permission to assemble small arms and expect it to be granted soon," says Swamy.

The company is a debt-free organisation already and has a market capitalisation of about Rs 1,200 crore.

In the last financial year, Nibe posted a turnover of Rs 100 crore (Rs 1 billion), which Swamy says is likely to triple this year to Rs 300 crore (Rs 3 billion).

The company hopes to exceed that rate of growth in FY25 by posting a turnover of Rs 1,000 crore (Rs 10 billion_.

"If you take any ministry of defence project, Nibe is up there, getting orders. Having the right resources, qualified welders and a competitive team gives us an edge," says Swamy.

"I already have 475 qualified welders in-house. So, when any project comes up, I'm up there and ready."

Feature Presentation: Aslam Hunani/Rediff.com