Sunita Tools boosts artillery shell production with INR 126 crore investment

Sunita Tools Limited announced an expansion of its production capacity for empty artillery shells, from 110,000 shells to 360,000 shells per annum. The company will add two new production lines, Line 2 and Line 3, over the next two years. Line 2 is expected to be operational within one year, and Line 3 within two years.

This expansion involves a total investment of approximately INR 126 crore, to be funded through a mix of debt, promoter infusion, and equity. Sunita Tools will partner with a UK-based company for technology transfer related to presses and die design, and 99% of the equipment will be sourced from India, supporting the "Make in India" initiative.

The company's decision follows significant domestic inquiries and Letters of Intent, leveraging its position as a cost-efficient shell manufacturer. Sanjay Kumar Pandey, whole time director, expressed confidence in replicating past successes to meet market demand and strengthen the company's position.