Hyderabad-based Lokesh Machines Limited has secured a significant ₹9.5 crore contract from the Sashastra Seema Bal (SSB). The deal involves supplying indigenous ASMI 9×19mm submachine guns (SMGs), marking a milestone for private sector involvement in small arms manufacturing.
The company confirmed this in a stock exchange filing on March 17, 2026.
This contract, valued at approximately $1 million, underscores the growing trust in home-grown defence production. Lokesh Machines, a precision engineering firm with expertise in aerospace and defence components, will deliver the ASMI SMGs to bolster SSB’s operational capabilities.
The ASMI, developed by the Defence Research and Development Organisation (DRDO), represents a leap in indigenous small arms technology. Chambered in the standard 9×19mm Parabellum round, it combines high reliability with low recoil, making it ideal for close-quarters combat.
Modern features of the ASMI include a ambidextrous design, Picatinny rails for optics and accessories, and a modular construction for easy maintenance. Its lightweight polymer frame enhances mobility, crucial for SSB personnel guarding India’s porous borders with Nepal and Bhutan.
SSB, tasked with securing these sensitive frontiers and countering cross-border threats, benefits immensely from such advanced weaponry. The force often operates in rugged terrains where weapon durability and rapid handling are paramount.
This order aligns with India’s Atmanirbhar Bharat initiative, promoting self-reliance in defence. Private firms like Lokesh Machines are filling critical gaps left by traditional public sector undertakings, accelerating indigenisation of infantry arms.
DRDO’s role in ASMI’s development highlights successful public-private partnerships. The gun underwent rigorous trials, proving superior to many imported counterparts in tropical and high-altitude conditions prevalent along SSB’s deployment zones.
Lokesh Machines’ selection as the production partner stems from its proven track record. The company already manufactures precision parts for missiles and aircraft, bringing high-quality machining to small arms assembly.
Financially, the ₹9.5 crore deal boosts Lokesh Machines’ order book in defence. It signals potential for larger contracts, as the government pushes for 75% indigenous content in procurements by 2025-26.
For SSB, integration of ASMI SMGs enhances internal security operations too. The force frequently tackles insurgency and smuggling in the Terai region, where the weapon’s controllability during sustained fire proves advantageous.
This development bodes well for India’s small arms ecosystem. With ASMI now entering serial production, other paramilitary forces like CRPF and BSF may follow suit, reducing import dependence that once exceeded 70%.
Strategically, arming SSB with ASMI strengthens India’s border posture amid rising tensions with neighbours. The SMG’s reliability in adverse weather supports round-the-clock vigilance.
This contract exemplifies the private sector’s rising stature in defence manufacturing. It paves the way for more such deals, fostering innovation and economic growth in Hyderabad’s burgeoning defence hub.
IDN (With Agency Inputs)
