Lokesh Machines, a Hyderabad based firm with market capitalisation of Rs 330 crore gained 20 percent in trade on June 15th, after being granted the Initial License (Form VIJ) for manufacturing of small arms by the Ministry of Home Affairs.

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Lokesh Machines is a part of the Machine Tool industry, which is considered as the mother industry as it supplies machinery for the entire manufacturing

sector. The company has now ventured into defence equipment manufacturing.

Lokesh Machines has six branches across Hyderabad and Pune. It exports Computer Numerical Control (CNC) machines to Japan, Germany, Netherlands, Italy, Turkey, Russia, China, and Middle Eastern nations. The company manufactures cam & crank borers, fine borers, and finish milling machines. It has recently delivered a series of Special Purpose Machines to Volvo Eicher Commercial Vehicles for machining EURO VI compliant Engine Cylinder Blocks & Heads.

The machine tools industry which is seeing a meaningful upturn after a long period of sluggish growth, is likely to witness a positive momentum on the back of revival in overall economy. Also there is increasing need for personal

mobility. Introduction of schemes like production-linked incentive and vehicle scrappage policy is likely to increase the competitiveness of the Indian automotive industry globally. Also, with the global supply chains in Engineering and Automotive space starting to source from India as a China de-risking strategy, the future holds promising for India.

Procedure for obtaining an industrial license for the manufacturing of defence items

All applications for granting a license to manufacture small arms with caliber up to 12.7 mm must be submitted directly to the Ministry of Home Affairs using Form A-6. Security clearances should be provided in the specified proforma to the Under Secretary (Arms Section) at the Ministry.

For licenses to manufacture arms and ammunition with caliber above 12.7 mm, intended for defence purposes such as tanks, armoured fighting vehicles, defence aircraft, spacecraft, warships, and other defence equipment, applications must be made to Department for Industry and Internal Trade (DPIIT) using Form A-6 at the Industrial License Section DPIIT.

All other applications for items not covered in the Home Ministry notification must be submitted online through the e-biz portal on DPIIT's website.

(Edited by : Vahishta Unwalla)