Sunita Tools has secured a significant defence contract to supply 1,00,000 artillery shell casings annually. The contract is valued between $23 million and $35 million. This order involves the production of 155mm M107 empty artillery shells and was awarded through a Letter of Intent (LOI) from an unidentified defence company. The LOI indicates that the order is expected to be fulfilled within one year following the acceptance of trial samples.

Production Timeline: Sunita Tools has been given eight months to ramp up production capabilities for large-scale manufacturing. In the interim, they will provide trial samples and small batches from existing facilities.

This contract marks a pivotal expansion for Sunita Tools into the defence sector, leveraging its 36 years of technical expertise. The company’s subsidiary, Tripathi Aerotech & Weapons Systems, which was previously known as Shigna Industrial Corporation, played a crucial role in securing this LOI after Sunita Tools acquired a majority stake in it.

Sanjay Pandey, chairman and technical director of Sunita Tools, expressed optimism about this development, noting that it positions the company for significant growth in the defence manufacturing industry. He highlighted the increasing global demand for artillery shells due to changing military dynamics and emphasized that this contract could lead to further orders in the future.

Following the announcement, Sunita Tools' stock experienced a notable rise, hitting an upper circuit limit on the stock exchange. This reflects investor confidence in the company's strategic direction and its potential for future growth in defence manufacturing.

Agencies