SOURCE: AFI
Sunita Tools Limited, a rising star in India’s defense manufacturing sector, has achieved a significant milestone with the receipt of a Major Letter of Intent (LOI) on March 21, 2025, for the supply of 100,000 empty 155mm M107 artillery shells. Valued between ?200-300 crore ($23-35 million), this order from a prominent defense supplier in a neutral and friendly Far Eastern country marks a pivotal moment for the Mumbai-based company, reinforcing its growing stature in the global defense supply chain. The contract not only underscores Sunita Tools’ technical prowess but also aligns with India’s ambitious goal of achieving $5 billion in defense exports by 2025, driven by the “Make in India” initiative.
The LOI, issued by a well-established defense supplier backed by the Ministry of Defence (MoD) of the Far Eastern nation, stipulates the delivery of 100,000 empty 155mm M107 artillery shells at a rate of 7,500 pieces per month, with the entire order to be fulfilled within 14 months. The 155mm M107 shell, a NATO-standard projectile, is a versatile and widely used munition compatible with various howitzers, including the Indian Army’s Dhanush, DRDO ATAGS, and K9 Vajra systems. Its global demand has surged amid ongoing conflicts and military modernization efforts, making this contract a strategic win for Sunita Tools.
The deal’s credibility is further enhanced by the direct issuance of an End-User Certificate (EUC) by the purchasing country’s MoD, ensuring compliance with international arms trade regulations. An advance payment to secure Sunita Tools’ manufacturing capacity is expected imminently, signaling the buyer’s confidence in the company’s ability to deliver. Sanjay Pandey, Chairman and Whole-Time Technical Director of Sunita Tools, expressed enthusiasm about the order, stating, “This is the biggest LOI for the Sunita Tools group. It propels us into a fast-growing, highly profitable industry, leveraging our 36 years of technical expertise to meet both domestic and global demand for artillery munitions.”
To meet the contract’s requirements, Sunita Tools is gearing up to establish large-scale infrastructure and a dedicated team. The company plans to commence deliveries as soon as possible, with initial trial samples and low-volume batches supplied from its existing facility in Vasai, Mumbai. The LOI allows eight months for setting up a new manufacturing setup to support mass production, ensuring the delivery of 7,500 shells per month over the 14-month period. This ambitious timeline reflects Sunita Tools’ commitment to quality and reliability, critical factors in the defense industry.
The order is being executed through Sunita Tools’ subsidiary, Tripathi Aerotech & Weapons Systems Pvt Ltd (formerly Shigna Industrial Corporation), which recently qualified financially and technically for such high-value defense projects following its acquisition by Sunita Tools. The company’s expertise in precision manufacturing, including mold bases, CNC machining, and aerospace components, has positioned it to capitalize on the growing market for artillery munitions. Pandey noted, “With global stockpiles shifting from two to 20 months due to changing warfare dynamics, the export demand for 155mm shells is immense. We are confident that successful trial samples will open doors for renewed contracts and supplies to other entities.”
This contract is a significant boost for India’s defense export ambitions, which have seen remarkable growth in recent years. India’s defense exports reached ?21,083 crore in FY 2023-24, a 174% increase since the launch of “Make in India,” with the government targeting $5 billion by 2025. The 155mm M107 shell’s compatibility with artillery systems used by over 75 armies worldwide makes it a high-demand item, and Sunita Tools’ entry into this market showcases the capability of India’s private sector to deliver critical defense components.
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