Goodluck India to invest ₹500 cr to scale up artillery shell casing output

To meet rising demand from domestic and European buyers, Goodluck India Limited plans to invest up to ₹500 crore to scale up artillery shell casing output at its Uttar Pradesh (UP) facility to 400,000 units from 150,000 over the next year, the company’s leadership said on Tuesday.

 

The facility manufactures empty M107 155 mm medium-calibre artillery shells. The investment — aimed at expanding shell production capacity and installing machinery for aerospace component manufacturing — will be funded through a mix of debt and equity.

 

European nations have been scrambling to secure ammunition — both artillery shells and the explosives that fill them — as the Russia-Ukraine conflict has exposed critical gaps in their production capacity. 

A manufacturer of specialised engineered steel products, Goodluck India established a plant to manufacture empty artillery shells in Sikandrabad, UP’s Bulandshahr district, in 2024. It was granted an industrial licence under the Indian Arms Act, 1959, in October.

 

Production of a test batch of empty shells commenced at the facility earlier this month, said Goodluck India Chief Executive Officer (CEO) Ram Agarwal

 

He added that prospective customers include foreign nations, several of which — particularly in Europe — have already signed letters of intent. “Countries such as Czechia have already expressed interest in procuring shells,” Agarwal said.

 

In November last year, Ukraine’s leadership warned that, according to its intelligence estimates, by 2025, Russia could produce 30 per cent more artillery shells than all European Union member states combined.

 

However, the European Union Institute for Security Studies (EUISS) has said that European production will reach 2 million 155 mm artillery shells in 2025.

 

The shells are being manufactured by its subsidiary, Goodluck Defence and Aerospace Limited, with the company indicating order visibility for at least a year. “We expect orders worth around ₹300 crore in the coming year,” said Agarwal.

 

“We are among the select companies to have received approval for artillery shell manufacturing, which is a testament to our strong technical and engineering capabilities and relentless pursuit of innovation and operational excellence,” said Agarwal.

 

He added, “We have been receiving significant enquiries for the supply of shells. So, we feel that it is an opportune time to expand our capacity to be able to cater to this demand.”

 

Goodluck Defence has received a licence to manufacture all major shell sizes, including 105 mm, 120 mm, 125 mm, 130 mm, and 155 mm. 

 

Last month, Goodluck India signed a tripartite memorandum of understanding with BrahMos Aerospace Thiruvananthapuram Ltd and Axiscades Technologies Ltd to compete for the contract to develop and build the prototype of India’s first indigenous stealth fighter jet, the Advanced Medium Combat Aircraft (Amca). The consortium has responded to the expression of interest issued by the programme’s design agency, the Aeronautical Development Agency (ADA).