Sunita Tools Limited has entered into an interim sales agreement to supply 240,000 empty NATO Spec and Standard 155mm M107 artillery shells.
The company described the arrangement as an interim sales agreement and stated that it will be converted into a sales agreement after clearance of the prototype batch. It referred to receipt of a purchase order for the same quantity, indicating that the transaction has been formalised for regulatory reporting while remaining subject to clearance of the prototype batch. The company said the order was awarded by a domestic entity, whose name has not been disclosed due to confidentiality. The company classified the contract as a deemed export leading to international supply.
Sunita Tools stated that approximate monthly billing under the agreement is INR 240 million and will commence after completion of formalities and receipt of advance. Supplies will be executed at a rate of 10,000 units per month over 24 months, with a grace period.
The company outlined payment terms, including a rolling 50 percent advance covering three months of supply. It added that monthly supplies will be paid for before delivery, with the advance adjusted against that month’s payment.
“We are pleased to announce this strategic Sales Agreement, the largest yet in Sunita Tools and which represents an inflection point in Sunita Tools Limited history, This Sales Agreement strengthens our presence in the global arena for NATO standard 155mm M107 shells, This Sales agreement seals the deal for our Line 1 and Line 2 in our factory and opens pathway for supplies to more NATO std customers. With the Trusted Team and efficient working, we will make sure that the supplies are made well in time and of specified quality standards,” said Sanjay Pandey, Chairman and Whole Time Director of Sunita Tools Limited.
The company also confirmed that neither the promoter nor the promoter group has any interest in the awarding entity and that the order does not fall within related party transactions.
Sunita Tools Limited has over 36 years of experience in the engineering and mould base industry. The company manufactures ground plates, mould bases, and precision CNC machined components serving sectors including automotive, pharmaceutical, electronics, consumer goods, aerospace, and defence.
