Sunita Tools Signs Interim Sales Agreement For NATO 155mm Shells

04 Mar 2026 CW Team

Sunita Tools Limited has entered into an interim sales agreement to supply 240,000 empty NATO specification and standard 155mm M107 artillery shells. The company said the contract calls for supplies at a rate of 10,000 units per month and for completion over 24 months. The agreement is described as an interim arrangement that may convert to a full sales agreement following prototype batch clearance.

Under the terms the deliveries will be scheduled at the stated monthly rate with some contractual grace period and the supply obligation spans a two year period. Payment terms set a rolling 50 per cent advance covering three months of supply while monthly shipments are to be paid before delivery with adjustments against the advance for that month. Monthly billing is expected to amount to Rs 240 million (mn) once formalities are completed and advance payments are received.

The buyer is registered with the Department for Promotion of Industry and Internal Trade and will issue DP02 authorisations, enabling the buyer to accept supplies until the company obtains its own DPIIT registration. The initial supplies are to begin as soon as possible following completion of required formalities. The deal is non-exclusive, allowing the company to allocate part of production to other customers when opportunities arise.

Sunita Tools described the agreement as a strategic milestone that supports its long term plan to expand international defence and aerospace business and said the company will leverage its experienced team and factory capability to fulfil the order efficiently. The company noted it has 36 years of experience in engineering and mould base manufacturing and supplies components to automotive, pharmaceutical, electronics, consumer goods, aerospace and defence sectors. The release included a standard forward looking statement advising that actual outcomes may differ due to regulatory, political, economic and technological risks.

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