Army Ammunition Procurements : News & Updates

Bharat Forge arm Agneyastra buys 950-acre land in Andhra Pradesh for defence manufacturing complex


Forging and precision engineering firm Bharat Forge Limited on Thursday (September 4) said its step-down subsidiary, Agneyastra Energetics Limited, has signed an agreement with Andhra Pradesh Industrial Infrastructure Corporation Ltd for the purchase of a land parcel measuring about 949.65 acres in Madakasira, Anantapur district.


The land will be used to develop an end-to-end defence energetics manufacturing complex. The facility will include a high explosives manufacturing plant, an ammunition filling plant, and a gun propellant facility. Provisions are also being made for future expansion into energetics for rockets, missile systems, space launch vehicles, and advanced energetics.

Agneyastra Energetics was incorporated through Kalyani Strategic Systems Limited, a wholly-owned subsidiary of Bharat Forge. The company said the land acquisition aligns with its growth objectives and will enable further expansion of its presence in the defence sector.
 
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Goodluck India to invest ₹400 crore to boost artillery shell production amid global trade uncertainties


Specialized steel and engineering products maker Goodluck India Ltd is looking to invest ₹400 crore to expand artillery empty shell production at its defence arm at Sikandrabad, Uttar Pradesh, over 12-18 months.
The move comes as the company seeks to diversify its revenue base amid global trade uncertainties fuelled by US president Donald Trump’s tariff war. The US has imposed 50% tariffs on Indian exports, making it difficult for businesses to plan their capital expenditure.

The investments in Goodluck Defence and Aerospace Ltd, to be funded through a mix of debt and equity, underscore the Ghaziabad-headquartered company’s intent to balance its traditional export-oriented portfolio, largely focused on the auto and engineering segments, with a steady domestic demand from the defence sector.

Ram Aggarwal, chief executive officer, Goodluck India Ltd, said that the expansion at the defence unit will raise the annual production capacity from 150,000 artillery shells to 400,000 over the next one year. The unit, which came up at an investment of ₹275 crore, is currently under trial run and is expected to generate a revenue of ₹300 crore by March 2027.
 

MoD year-end review 2025:
32 variants of ammunition have been offered to the Indian Industry for long term contracts under ‘Manufacturing of Ammunition for IA by Indian Industry, a Government of India Initiative’. These are being progressed as 12 procurement cases (clubbed based on calibre/ platform) amounting to ₹ 15,899 Crore. Four cases worth ₹5,696 Cr have been placed with DPSUs & Private players and balance cases are at advance stages of evaluation and likely to fructify during the next six to twelve months. Most of these ammunitions are likely to be indigenized by 2027-28.

- IA has a clear roadmap as part of the Aatmanirbharta vision for 10 years. In the Phase-I (2025-26), indigenization (including private industry) for all import dependent ammunition for major platforms is underway for a total of 32 variants amounting to ₹15,899 Cr. In Phase-II (2026-27), five additional ammunition have been identified for production through Indian Industry to expand vendor base and secure affected by supply chain disruption. In Phase-III (2027 onwards), the experience and expertise gained in first two Phases would provide the requisite wherewithal in terms of infrastructure and technology, laying the foundation for indigenous development of next generation of hi-tech ammunition based on indigenous R&D in niche technology and Indian IPR for the world market. The aim of the Aatmanirbhar project is to build up ammunition stocks to desired levels, minimize imports and achieve self-sufficiency in the country as also establish at least two sources for each type of ammunition, obtain critical technologies and set up manufacturing infrastructure and capability.

- IA has a large inventory of ammunition, currently comprising 175 scaled in-service variants ranging from ammunition for vintage platforms to advance precision guided munitions. Through concerted efforts and close coordination with DRDO, DPSUs and Private Industry, 159 ammunition variants (90.85%) have been indigenised and are being sourced from indigenous source (single source - 110 and more than one source – 49).

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Import bill down, 90% Army ammo now made in India

The Army has reduced its reliance on imported ammunition and now secured indigenous sourcing for 90 per cent of its needs. The push for indigenisation is reshaping ammunition preparedness and long-term war-fighting capability.

Almost 200 variants of ammunition and precision ammunition is used by the Army across its weapon systems – which range from a pistol at the lowest-end and Brahmos missile at the highest. This array of weapons includes, rifles, automatic machine guns, anti-tank missiles, artillery guns, rockets like Pinaka and ammunition used by the Army aviation.

A policy reform and industry engagement with the private sector has resulted in more than 90 per cent of the ammunition being indigenised and is now sourced through domestic manufacturers.

To have a make-in-India option for the remaining imported ammunition, the Army is also working with research agencies, public sector manufacturers and other private players. To give an example, sources said the precision-guided artillery ammunition, the Excalibur, used effectively in Operation Sindoor, is imported from the US. Efforts are on to make a precision ammunition.

Over the last four to five years, procurement processes have been restructured to promote competition and multiple sourcing options. As off today, there is an order of around Rs 16,000 crore worth of ammunition on the domestic industry. In the past three years, ammunition supply orders worth nearly Rs 26,000 crore have been placed on indigenous manufacturers.

Vendor diversification has improved supply resilience, with many ammunition variants now supplied by multiple domestic sources.

India’s security environment is increasingly shaped by uncertainty, rapid technological change and prolonged crises. In this backdrop, military readiness depends not only on advanced weapons but also on the ability to sustain operations over time. For this, the supply chain needs to be localised, sources said.

Ammunition, spares and logistics form the backbone of combat endurance. Recognising this, the Army has placed self-reliance in ammunition production at the core of its preparedness strategy. This was kicked off in the past five years or so and has picked up speed after Operation Sindoor.

For years, ammunition supply relied heavily on legacy production systems in the public sector and overseas sourcing, leaving it vulnerable during global disruptions. Recent conflicts like the longdrawn Russia-Ukraine conflict highlighted a reality -- nations that can sustain ammunition supplies domestically are better positioned to maintain operational momentum.

Reacting to the changed global scenario, the Army accelerated indigenisation in line with the national vision of Make in India. The next phase focuses on consolidating gains. Priority areas include strengthening domestic raw-material supply chains for propellants and fuzes, modernising manufacturing infrastructure, accelerating technology transfers and ensuring rigorous quality standards. Together, these measures aim to build a robust and self-sustaining ammunition ecosystem.
 
Himachal Pradesh is all set to break into the defence production sector with the Baddi-Barotiwala-Nalagarh industrial belt, till now more known as Asia’s biggest pharmaceutical hub, emerging as the state’s new destination for manufacturing and supplying military necessities.

The senior industries department officials confirmed to Outlook on Wednesday that a mega private military ammunition plant, being set up by M/s Shakti Missile Private (SMPP) Limited at Nalagarh, bordering Chandigarh, will start production by March 2026.

The plant, aimed at boosting India’s domestic manufacturing facility to meet the crucial operational needs of the defence forces, will manufacture 155 mm artillery shells, giving a significant push for 'Aatmanirbhar Bharat' (Self-Reliant India) in defence production.

The SMPP has already participated in the two tenders of the Indian Army issued in the year 2021 for the procurement of BMCS (Bi Modular Charge Systems) and 155 mm Shells. Now that SMPP has also entered into an agreement with Rheinmetall-Denel Munitions (RDM) of South Africa to produce the utmost quality of this ammunition in India, the upcoming facility in Himachal Pradesh will play a significant role in the coming times, says officials of the Industries department.