Sunita Tools Signs Interim Agreement for NATO 155mm Shells
ECONOMY & POLICY

Sunita Tools Signs Interim Agreement for NATO 155mm Shells

Sunita Tools Limited has entered into an interim sales agreement to supply 240,000 empty NATO standard 155mm M107 artillery shells. The contract requires delivery at a rate of 10,000 units per month over a period of 24 months with some grace period. The agreement is non-exclusive allowing the company to allocate part of production to other customers as capacity permits.

Payment terms under the agreement provide for rolling 50 per cent advance covering three months' supply, with monthly supplies paid before delivery and adjusted against that month's advance. The company indicated that approximately Rs 240 million (mn) of monthly billing will commence once formalities are completed and the advance is received. Billing figures are expressed as Rs and monetary amounts are converted to million and abbreviated as mn thereafter.

The buyer is registered with the Department for Promotion of Industry and Internal Trade and will issue required DP02 documentation and accept supplies until the company's DPIIT registration is finalised. Initial supplies are expected to begin as soon as possible following prototype clearance and completion of pre delivery formalities. The interim agreement is expected to be converted to a full sales agreement after the prototype batch is cleared.

Sunita Tools noted that the order marks an inflection point in its strategy to expand international defence and aerospace operations and that the company will leverage its experience, technical team and manufacturing capacity to meet contractual quality and delivery expectations. The company highlighted its more than 36 years in engineering and mould base manufacturing and its capabilities in ground plates, mould bases and precision CNC machining that support aerospace and defence component production. The company also committed to provide after sales technical support and senior management engagement to address concerns promptly.

Sunita Tools Limited has entered into an interim sales agreement to supply 240,000 empty NATO standard 155mm M107 artillery shells. The contract requires delivery at a rate of 10,000 units per month over a period of 24 months with some grace period. The agreement is non-exclusive allowing the company to allocate part of production to other customers as capacity permits. Payment terms under the agreement provide for rolling 50 per cent advance covering three months' supply, with monthly supplies paid before delivery and adjusted against that month's advance. The company indicated that approximately Rs 240 million (mn) of monthly billing will commence once formalities are completed and the advance is received. Billing figures are expressed as Rs and monetary amounts are converted to million and abbreviated as mn thereafter. The buyer is registered with the Department for Promotion of Industry and Internal Trade and will issue required DP02 documentation and accept supplies until the company's DPIIT registration is finalised. Initial supplies are expected to begin as soon as possible following prototype clearance and completion of pre delivery formalities. The interim agreement is expected to be converted to a full sales agreement after the prototype batch is cleared. Sunita Tools noted that the order marks an inflection point in its strategy to expand international defence and aerospace operations and that the company will leverage its experience, technical team and manufacturing capacity to meet contractual quality and delivery expectations. The company highlighted its more than 36 years in engineering and mould base manufacturing and its capabilities in ground plates, mould bases and precision CNC machining that support aerospace and defence component production. The company also committed to provide after sales technical support and senior management engagement to address concerns promptly.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement