Lokesh Machines Ltd. Secures License for Heavy Machine Gun Manufacture

Key Takeaways from the Deal

• Lokesh Machines Ltd. has been granted a Form VII licence by the Department for Promotion of Industry and Internal Trade.

• This allows them to manufacture fixed/towed heavy machine guns with calibres from 12.7mm to 30mm.

• This licence expands Lokesh Machines' product portfolio, enabling them to produce advanced heavy weaponry.

Lokesh Machines Limited has announced that it has been granted a licence under the Arms Act, 1959, by the Department for Promotion of Industry and Internal Trade, Government of India, New Delhi. The Licensing Committee recommended the approval on September 18, 2024, enabling the company to manufacture fixed/towed heavy machine guns with calibres exceeding 12.7mm and up to 30mm.

The new licence, issued in Form VII, represents a significant expansion of Lokesh Machines' product offerings. It will allow the company to enter the advanced heavy weaponry market, enhancing its capabilities and product portfolio. The licence is valid subject to the provisions of the Arms Act, 1959, the Arms Rules, 2016, and any relevant notifications issued under these regulations.



About Lokesh Machines Limited

Established on December 17, 1983, Lokesh Machines Limited commenced commercial operations in 1985 in Hyderabad. The company operates from six locations across Hyderabad and Pune, and it is listed on both the BSE and NSE, having issued its IPO in 2007. Lokesh Machines exports CNC machines to several countries, including Japan, Germany, the Netherlands, Italy, Turkey, and Russia. Renowned for its expertise in Cam & Crank Borers, Fine Borers, and Finish Milling Machines, Lokesh Machines is a leader in the precision manufacturing sector.

Key Takeaways from the Award Win

• DCX Systems Limited received an export order from Israel-based M/s. Elta Systems Ltd. is worth US$ 18.49 million (approximately INR 154.80 crores).
• The order involves the supply of RF Electronic Modules and is expected to be fulfilled within 12 months.
• There is no promoter or related party involvement in the transaction, ensuring that the contract is conducted at arm’s length.

M/s. ELTA Systems Ltd. from Israel has awarded a purchase order to supply RF Electronic Modules, with the total contract valued at US$ 18,495,779.10 (approximately INR 154.80 crores at an exchange rate of 1 USD = INR 83.70). 

As per a stock exchange filing, the order, placed by an international entity, is to be executed within a 12-month timeframe. There is no involvement or interest of the promoter, promoter group, or group companies in the awarding entity, and the contract does not fall under related party transactions.

About DCX Systems Limited

Incorporated in 2011, DCX Systems Ltd. specialises in system integration and the manufacturing of cables and wire harness assemblies. The company is recognised as a prominent Indian Offset Partner (IOP) for international OEMs, particularly within the aerospace and defence sectors. DCX Systems Ltd. is a key partner for ELTA Systems Limited and Israel Aerospace Industries Limited (IAI Group), focussing on the Indian defence market for producing electronic sub-systems and cable and wire harness assemblies. Over time, DCX Systems has developed a strong reputation for its system-driven efficiency, quality control, and timely delivery, fostering long-term relationships with its OEM clients and contributing to significant growth and a robust order book.

Key Takeaways from Fed Rate Cut Implication on D-Street

• Fed’s rate cut could lead to increased capital flows in India, enhancing foreign investment and improving overall market sentiment for Indian equities.

• Indian markets are likely to be positive, especially in sectors such as financials, real estate, and consumer discretionary, with reduced borrowing costs.

• Growth in US economic activity could therefore also translate to increased sales and stock prices for technology and pharma.

The immediate impact of the rate cut by the Fed would be in terms of a huge shift in capital. Fewer yields from US assets mean it can be translated into reduced interest rates in the United States. This means investors are going to push back for a higher return in some other markets, like India. Foreign Institutional Investors would pour into Indian equity markets, thereby further improving liquidity, boosting stock prices and improving market sentiment.

Indian markets are likely to react positively to the Fed rate cut, mainly in interest-rate-sensitive sectors. Financial, real estate and consumer discretionary sectors may experience heightened activity as lower borrowing costs create a favourable environment for investment.

Technology and pharmaceutical sectors, two major contributors to India's export economy, may also benefit due to higher US economic activity as a result of lower interest rates. The pick-up in their sales may push up the prices of their shares and thereby propagate the rally.

Key Takeaways from the Acquisition and Investment

• Tilaknagar Industries acquires a 36.17% stake in Bartisans with a Rs 8 crore investment through primary and secondary acquisition.

• Bartisans founders retain 56.54% equity, while Tilaknagar Industries could further invest upon Bartisans meeting pre-agreed milestones.

• Bartisans, founded in 2021, has achieved Rs 3.5 crore revenue in FY24, with a product portfolio of 17 all-natural cocktail mixers.

Following this investment, Bartisans' founders, Jovita and Jordan Mascarenhas, will retain 56.54% ownership of the company, with the remaining shares allocated for an Employee Stock Ownership Plan (ESOP) pool. 

According to the company, the executed definitive arrangements will also grant Tilaknagar Industries the option to invest or acquire further shares according to a pre-agreed valuation, contingent on Bartisans meeting certain milestones.

The investment of Rs 8 crore will constitute Rs 3 crore as a primary investment for business expansion and marketing across India and will also consist of Rs 5 crore towards secondary acquisitions from existing shareholders. Tilaknagar Industries will also acquire the right to appoint a director on Bartisans' board. 

Ameya Deshpande, President, Strategy and Corporate Development, Tilaknagar Industries, said, “Bartisans has developed mixers with unique, in-house recipes that resonate with the Indian palate and add a twist for an extraordinary drinking experience. Its products evoke strong customer loyalty, a trait it shares with our leading brands, Mansion House Brandy and Courrier Napoleon Brandy.”

“Tilaknagar Industries' expertise in the alco-bev sector coupled with our vision for innovative cocktails experiences creates an exciting opportunity to scale Bartisans to new heights. We are confident that this partnership will elevate our brand and expand our reach across the market,” Jovita Mascarenhas, Co-Founder, Round the Cocktails Private Limited, said.

About Tilaknagar Industries Limited

Tilaknagar Industries Limited (TIL) ranks among India’s prominent manufacturers of Indian-Made Foreign Liquor (IMFL). Established in 1933 by Shri Mahadev L. Dahanukar as Maharashtra Sugar Mills, the company initially focused on producing sugar and related products. Under the leadership of Shri Amit Dahanukar, TI has grown to become India’s leading premium brandy manufacturer, with a portfolio that includes two 'Millionaire' brandy labels, Mansion House and Courrier Napoleon. Additionally, the company has expanded into whisky, rum, and gin, offering brands like Mansion House Whisky, Madira Rum, and Blue Lagoon Gin.

About Round The Cocktails Private Limited

Incorporated on 19 August 2021, Round The Cocktails Private Limited is classified as a non-government company and is registered with the Registrar of Companies (ROC) in Mumbai. The company operates in the beverage manufacturing industry, and the directors of Round The Cocktails Private Limited are Jovita Mascarenhas and Jordan Mascarenhas, who guide the company's operations and strategic direction.

About Bartisans 

Bartisans, founded in 2021, offers a range of 17 all-natural cocktail mixers. The company generated Rs 3.5 crore in revenue during FY24, selling across more than 70 Indian cities. Known for its premium pricing and strong unit economics, Bartisans benefits from high customer retention and operates across various distribution channels, including direct-to-consumer, modern retail, and quick commerce.