Karnataka 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.
This article was originally published on MACHINIST.IN and is republished here with permission. Read the complete original story at Balu Forge Signs Five-Year MoU with NATO-Affiliated Entity to Supply 155 mm and 152 mm Shells
Thursday, February 26, 2026