Sigma Advanced Systems bags ₹1,013 crore export order for artillery shells

The order from a North American customer will be executed over the next six to 12 months and strengthens the company's position in the global defence supply chain

Sigma Advanced Systems Ltd secured a $104.9 million, or around ₹1,013 crore, export order from a North American customer to manufacture and supply 147,000 next-generation 155 mm base bleed artillery shell bodies, the company said in an exchange filing on Monday. The contract will be executed over the next six to 12 months.

 

The Hyderabad-based defence manufacturer said the order marks its move into more advanced artillery ammunition after previously securing contracts for 155 mm fuzes and M107 artillery shell bodies. The latest programme is expected to improve the company’s revenue and Ebitda margins while strengthening its credentials as a long-term global defence supplier.

 

 

What are base bleed shells?

 

Base bleed technology addresses a basic problem in artillery: aerodynamic drag at the rear of a shell as it flies, which shortens its range. Base bleed rounds fix a gas-generating unit at the base of the projectile that burns during flight, filling the low-pressure zone behind the shell and reducing drag.

 

Manufacturers say this can extend range by roughly 15-30 per cent over conventional shells while remaining compatible with existing 155 mm howitzers already in service, making it a relatively low-cost way for militaries to extend the reach of guns they already operate.

 

Global demand for such ammunition has risen sharply amid ongoing conflicts in Ukraine and West Asia, which have depleted stockpiles across Nato and allied militaries and pushed governments to prioritise ammunition production and extended-range fire support.

 

"Defence manufacturing is ultimately built on trust, earned through consistent execution, uncompromising quality, and the ability to scale complex programmes," said Sunil Kalidindi, chief executive officer and executive director of Sigma Advanced Systems, in a statement.

 

"Such contracts reflect the confidence global customers place in Sigma’s manufacturing capabilities and reinforce our ambition to become a long-term partner to leading defence organisations across global markets," he added.

 

The company said the order is expected to be margin-accretive and to strengthen its credentials as an export-qualified supplier, which could open doors to further contracts with overseas customers.