Artillery Shells

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DEFENCE SECTOR - HIGHLIGHTS

  • India is undergoing a major defence transformation—shifting from being the world’s second-largest importer (8.3% of global imports in 2020–24) to becoming a net exporter.
  • Domestic Defence Manufacturing Gets a Major Boost
    • India’s defence production reached ₹1.46 lakh crore in FY25, with projections to double to ₹3 lakh crore well before FY29, driven by accelerated manufacturing. The Ministry of Defence signed 193 contracts in FY25, with 92% by number and 80% by value awarded to Indian firms, strengthening the Aatmanirbhar Bharat mission.
  • The Rise of Private Players
    • Private sector contribution crossed .32,000 crore (~22%) in FY25. While DPSUs still lead with 70–80% share, private companies are growing faster, with a projected CAGR of 25–40% (vs. 15–18% for DPSUs). Agile, innovative, and globally connected, private firms are driving the next phase of defence growth.
  • Key Growth Areas in:
    • Air Force & Navy Modernisation: Major share of capital allocation.
    • Defence Electronics: Expected to grow at 1.5–2× the defence budget, driven by demand for sensors, radars, and secure communications.
    • Missiles & Ammunition:Programs like QRSAM (₹25,000 Cr), Astra, and MRSAM offer strong potential; BrahMos showcases India’s global capability.

STRATEGIC ACQUISITIONS

  • Purchased Ready to use Plant and Machinery from T.S. Kisan & Co. - a company manufacturing shells from 1996 - 2006.
  • Exhaustive experience of veteran Mr. Tarun Thapar who has been manufacturing shells since 1996. He joins us as Executive Director ( Technical)

*: Line2 to add 12,000 units artillery shells per month

155mm SHELL

  • 155 mm (6.1 inches) is a NATO-standard artillery shell caliber that is used in many field guns, howitzers, and gun-howitzers.
  • The cost of a 155mm artillery shell can vary widely depending on factors like the type of shell, manufacturer, and intended use. According to IDRW, Indian-produced 155mm shells cost approximately $230-$400 per unit.
  • Development of advanced 155mm shells, like those with extended range, higher accuracy, and diverse payload options (e.g., smoke, illumination), further fuels demand.

Future Prospects

  • Complete explosives-filled shells in association with filling company ( explosives).
  • PGK (Precision Guidance Kit) & CCF( Course Correcting Fuze) fuses - Turns a shell into a ‘smart’ one.
  • India's 155mm artillery shells are known for being costeffective, making them attractive to many countries, especially those with limited defense budgets.

Reasons for high demand

  • Indian Production and Exports:
    • India has become a key supplier of 155mm artillery shells, with companies like Munitions India Limited (MIL) and Yantra India Limited (YIL) ramping up production to meet domestic and international demand.
  • Cost-Effectiveness:
    • India's 155mm artillery shells are known for being cost-effective, making them attractive to many countries, especially those with limited defense budgets.
  • Indian Army Modernization:
    • The Indian Army is moving from older 130mm guns to 155mm systems like the ATAGS and K9 Vajra-T. This upgrade requires a significant increase in the number of 155mm shells for its arsenal.
  • Geopolitical instability
    • The ongoing conflicts, particularly in Ukraine, have created a surge in demand for 155mm artillery shells globally, as they are a vital part of modern artillery systems.

SWOT ANALYSIS

STRENGTHS

  • Strategic Location
  • Compatibility with NATO/Indian Systems
  • LOI for capacity till FY28
  • Advance payment: 30%

WEAKNESSES

  • Heavy Regulations.
  • Export Restrictions
  • CapEx heavy

OPPORTUNITIES

  • Huge margin improvement for contracts with filled shells explosives
  • Export to Friendly Nations
  • Indian defence modernization

THREATS

  • Technology & Design Bottlenecks
  • Supply Chain Disruptions
  • Safety & Legal Risk