Balu Forge Industries Expands into Defence with NATO Artillery Shell Contract
Balu Forge Industries Ltd is diversifying from agriculture into defence, securing a five-year contract to supply NATO with 155 mm artillery shells. The company plans to reduce agriculture's revenue contribution from 40% in FY25 to 25% by FY28, while increasing defence and aerospace segments. The agreement involves 30,000 M107 shells and 10,000 152 mm shells monthly. BFIL aims to expand production capacity to meet demand, with total revenue expected to exceed ₹1,000 crore at full capacity. The company is also developing products for aerospace and railways, reflecting its strategic diversification.
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Balu Forge Industries Ltd (BFIL) has secured a five-year contract to supply NATO with 155 mm artillery shells, marking its entry into the defence sector. The company is diversifying from agriculture, which contributed 40% of revenue in FY25, aiming to reduce this to 25% by FY28, while increasing defence and aerospace shares.
BFIL will supply 30,000 M107 shells and 10,000 152 mm shells monthly, starting April 2026. Revenue from shell production could exceed ₹1,000 crore. BFIL is also expanding into aerospace and railways, with total consolidated revenue rising 65% year-on-year to ₹941 crore in FY25.
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