NIBE Ltd has signed a Letter of Intent (LOI) with HBE, a South Korean defence company, to establish a joint venture (JV) in India focused on manufacturing defence and aerospace products. This agreement was announced on November 7, 2024, and outlines that NIBE will hold a 51% stake in the JV, while HBE will own 49%.

The JV aims to set up forging facilities in India to produce components for the defence and aerospace sectors, which is a significant step in enhancing local manufacturing capabilities.

The LOI is non-binding and contingent upon due diligence, regulatory approvals, and the finalization of a definitive agreement.

This initiative aligns with India's broader strategy to bolster indigenous defence manufacturing capabilities, contributing to the Make in India initiative.

In conjunction with this LOI, NIBE has also entered into a term sheet with Sig Sauer, a prominent American firearms manufacturer. This partnership will similarly focus on producing military and law enforcement products for Indian security forces, structured under the same 51:49 shareholding arrangement.

These strategic moves highlight NIBE's commitment to expanding its footprint in the defence sector while fostering international collaborations to enhance India's self-reliance in defence technology.