Belagavi’s industrial landscape has received a major boost. Balu Forge Industries Ltd has signed a legally binding five-year Memorandum of Understanding for the supply of large calibre ammunition shells, with production to be executed from its greenfield manufacturing campus at Kakti Industrial Area, Belagavi.
This development places Belagavi firmly on the global defence manufacturing map.
The agreement, effective from February 25, 2026, covers the supply of:
- 155 mm M107 shells – 30,000 units per month
- 152 mm shells – 10,000 units per month
All units will be supplied in “Ready to Fill” condition for a period of five years.
Supplies Begin April 2026
Serial production will commence in April 2026, initially focusing on 155 mm M107 and 152 mm variants. Extended range variants (155 mm ERFB BB/BT) will be added after trials and approvals. The agreement also covers future expansion into 105 mm, 120 mm, 81 mm and other categories.
The pricing is set at USD 315 per unit, indexed to the London Metal Exchange to account for raw material fluctuations. Payments are structured at 20% advance, with the balance through an irrevocable Letter of Credit.
Capacity Expansion Planned in Belagavi
The agreed volumes exceed the company’s current installed capacity of 3.6 lakh units annually. However, Balu Forge has already initiated plans to significantly scale up production at its 46+ acre integrated manufacturing campus in Belagavi, funded through internal accruals.
This expansion is expected to generate:
- Increased industrial activity in Kakti Industrial Area
- Skilled employment opportunities
- Strengthening of Belagavi’s position in the defence manufacturing ecosystem
NATO Supply Chain Integration
This MOU marks the next phase after Balu Forge’s onboarding into the NATO supply chain and commercialization of its empty shell line. The agreement has been signed with a NATO-affiliated entity. Due to the sensitive nature of defence supplies, the end user’s identity remains confidential.
About Balu Forge Industries
Founded by Mr. Prehlad Singh Chandock, Balu Forge Industries Limited is a precision engineering company manufacturing forged and machined components ranging from 1 kg to 1,500 kg and up to 3 meters in length.
From its advanced Belagavi facility, the company serves multiple global sectors including automotive, wind energy, aerospace, defence, oil & gas, railways and marine.
The Belagavi plant houses:
- High-capacity hydraulic hammers and forging presses
- Fully integrated machining units
- In-house tool room and metallurgical laboratories
- Dedicated R&D division for new material development and rapid prototyping