Balu Forge Industries Ltd has entered into a five-year Memorandum of Understanding (MoU) for the supply of large calibre ammunition shells from its greenfield manufacturing campus in Belgaum, Karnataka. The agreement, effective from 25 February 2026, covers monthly supplies of 155 mm and 152 mm variants, with serial deliveries scheduled to commence from April 2026.
The company said that the MoU includes supply of 30,000 units per month of 155 mm M107 shells and 10,000 units per month of 152 mm shells in “Ready to Fill” condition for a period of five years. The pricing for both variants has been set at USD 315 per unit, indexed to the London Metal Exchange, with terms on a free on board (FOB) basis at Nhava Sheva. Payment terms include 20 percent advance and the balance through an irrevocable Letter of Credit payable within 30 days from invoice issuance.
The volumes under the agreement exceed the company’s present capacity. Balu Forge has outlined plans to increase production capacity beyond 360,000 units per annum through internal accruals.
The agreement covers the large calibre ammunition category beginning with 155 mm M107, 152 mm, and 155 mm ERFB/BT variants, with potential extension to 105 mm, 120 mm and 81 mm variants. Initial supplies will be limited to the 155 mm M107 and 152 mm variants. The 155 mm ERFB BB/BT variant will be added as an addendum following trials and approval.
The MoU has been signed with a NATO-affiliated entity, although the end user has not been disclosed due to the confidentiality and sensitive nature of the supplies. The company stated that the agreement is legally binding on both parties.
Balu Forge Industries Limited operates fully integrated forging and machining facilities at its manufacturing campus in Belgaum, Karnataka, spread across more than 46 acres. The plant is equipped with high-capacity hydraulic hammers and forging presses, supported by an in-house tool room, metallurgical laboratories, and CNC machining units to enable precision manufacturing. The company’s infrastructure supports the production of forged and machined components ranging from 1 kilogram to 1,500 kilograms and up to 3 metres in length across multiple industrial applications. The company serves sectors including automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine and agriculture.
