NIBE Limited has announced a strategic licensing agreement with the Defence Research and Development Organisation (DRDO), specifically with the Research & Development Establishment (Engineers), Pune, for the manufacturing of modular bridging systems. The agreement marks a key move in advancing India’s defense self-reliance under the government’s indigenization drive.
Under the terms of the technology transfer (ToT) pact, NIBE will pay a total of Rs 3.76 crore in tranches over a 10-year period, during which it is authorized to use DRDO’s proprietary technology to produce modular bridges ranging from 14 to 46 meters in length. These bridges are designed as complex, mechanically launched systems capable of rapid deployment, enabling tracked and wheeled military vehicles to traverse challenging terrain and obstacles with ease.
The product is targeted at the Indian Armed Forces as well as central and state government agencies, with DRDO set to provide comprehensive technical know-how and testing methodologies. NIBE aims to roll out the product within the next 24 months.
The deal reflects a significant shift for NIBE, which traditionally operates in the electronic components and fabrication materials sector. The company also offers consultancy and turnkey services for the design, supply, erection, testing, and commissioning of low- and medium-voltage power lines and substations.
Despite this major defense development, NIBE reported a subdued financial performance in Q4 FY25. Its consolidated net profit fell by 30% year-on-year to Rs 7.64 crore, while total income dropped by 25.8% to Rs 113.64 crore. However, investor sentiment remained positive following the DRDO deal, with the company’s shares closing slightly higher at Rs 1,675.85 on Friday, June 6.
The agreement positions NIBE as a key player in India’s defense mobility ecosystem and is expected to contribute to the nation’s strategic and operational capabilities in the years to come.
