Indian defense company, Axiscades, clinches significant contract valued at approximately 223.95 crore rupees from the Indian Army under the 'Self-Reliant India' initiative.
Axiscades Technologies' wholly owned subsidiary, Axiscades Aerospace & Technologies Private Limited, has secured a significant contract from the Indian Army. The deal, worth Rs 223.95 crore, is for the supply of 212 units of next-generation 50-ton Tank Transporter Trailers [1][2][3].
The contract was awarded by the Directorate General of Capability Development, Integrated Headquarters of the Ministry of Defence (Army), A Wing, Sena Bhavan, New Delhi, and must be executed within two years [3]. The advanced trailers feature hydraulic and pneumatic loading ramps, steerable and liftable axles, enhancing the army’s capability to transport tanks and armored vehicles more efficiently over challenging terrain [3].
This contract is a key strategic push by the Indian government to foster domestic defence production under the Buy (Indian-IDDM) category. It supports both national security and the growth of the domestic defence manufacturing ecosystem. The deal also aligns with broader efforts to generate sustained employment and reduce dependency on foreign suppliers [1][3].
The contract comes at a time when Axiscades is focusing more on defence technology innovation. This is evident in its recent MoU with European defence firm Indra, aiming to boost production and jointly develop cutting-edge defence systems catering to Indian and global markets [2]. The contract is expected to reinforce Axiscades’ financial performance and market reputation, with the company having reported significant recent profit growth and increased revenues [1][4].
In the March quarter of 2024, Axiscades Technologies reported an over three-fold jump in consolidated net profit to Rs 32 crore. Moreover, in the fourth quarter of FY24, the company recorded a net profit of Rs 9 crore. The company's revenue increased 5 per cent to Rs 268 crore in Q4 from Rs 256 crore a year ago [1][4].
Notably, the deal is entirely domestic and does not involve any related party transactions. The contract announcement was made by Axiscades Technologies Ltd on Monday, and the company's shares went up by 0.77 per cent to a trading price of Rs 1,290.00 [5].
In summary, this contract reflects the intersection of India's strategic policy of Atmanirbhar Bharat in defence, Axiscades’ growing role in indigenous defence solutions, and the Indian Army’s modernization drive with logistic assets that enhance battlefield mobility and operational effectiveness [1][2][3][4].
[1] https://www.business-standard.com/article/companies/axiscades-technologies-secures-rs-223-95-cr-contract-from-indian-army-122042200582_1.html [2] https://www.financialexpress.com/industry/defence/axiscades-technologies-signs-mou-with-european-defence-firm-indra-to-boost-production-and-jointly-develop-cutting-edge-defence-systems/2434161/ [3] https://www.livemint.com/industry/auto-commercial-vehicles/axiscades-wins-rs-223-95-crore-contract-to-supply-army-with-tank-transporter-trailers/articleshow/98471938.cms [4] https://www.moneycontrol.com/news/business/stocks/axiscades-technologies-ltd-q4-results-net-profit-up-3-times-to-rs-32-crore-5123561.html [5] https://www.moneycontrol.com/news/business/stocks/axiscades-technologies-ltd-shares-up-0-77-on-bse-at-rs-1290-00-5212921.html
- The deal for the supply of 212 units of next-generation tank transporter trailers to the Indian Army marks a significant milestone in the science and technology of logistics for the military, as it includes features like hydraulic and pneumatic loading ramps and steerable, liftable axles.
- The contract, which falls under the Buy (Indian-IDDM) category, not only supports the growth of the domestic defence manufacturing ecosystem but also aligns with India's strategic policy of Atmanirbhar Bharat in defence.
- In the realm of finance, this deal is expected to reinforce Axiscades Technologies' financial performance and market reputation, as indicated by the company's recent profit growth and increased revenues.
- This domestic contract, executed by Axiscades Technologies' subsidiary, Axiscades Aerospace & Technologies Private Limited, also serves to diminish dependency on foreign suppliers for defence equipment, contributing to the consolidation of the general-news headline on sustained employment in the sector.
