Sunita Tools Ltd announces Expansion of Production Capacity for Empty Artillery Shells

Sunita Tools Limited, a leading manufacturer of empty artillery shells, is pleased to announce the expansion of its production capacity, in line with the company's growth strategy and to meet the increasing demand for its products.

1. To expand the Production Capacity from Line -1 to Line 2 & 3 thus increasing the manufacturing capacity of empty Artillery shells (various Calibres) from 1,10,000 Nos. to 3,60,000 efficient output capacity within two years (Line 2 -1 year, Line 3 - 2 years) with the TOT of Presses and Die design from UK, 99% Equipment made and sourced in India of topmost quality better then any in the World, True Make in India initiative and an Total investment for both lines to the tune of approx. Rs. 126 Crore.

2. To arrange the funds through different means required for the proposed expansion.

Key Highlights

1. Capacity Expansion: The company will increase its production capacity from 1,10,000 shells to 3,60,000 shells per annum by adding two new production lines (Line 2 and Line 3).

2. Technology Partnership: The company will partner with a UK-based company for the transfer of technology (TOT) for presses and die design.

3. Make in India Initiative: The company will source 99% of the equipment from India, ensuring high-quality products and supporting the government's "Make in India" initiative.

4. Investment: The total investment for the expansion is approximately Rs. 126 Crore.

5. Timeline: The expansion is expected to be completed in two years, with Line 2 being operational within one year and Line 3 within two years.

Rationale

The company has received significant domestic enquiries and has ample Letters of Intent (LOIs) in place. With the growing demand for empty artillery shells worldwide and in India, the company believes that this expansion will enable it to capitalize on the market opportunity and leverage its position as the most frugal capex shell manufacturing company.

Funding

The expansion will be funded through a mix of debt, promoter infusion, and equity.

Commenting on this development, Mr. Sanjay Kumar Pandey, Whole Time Director of Sunita said: "We are excited about this expansion and are confident that our experience in completing Line 1 project in record time will help us replicate the same success in Line 2 and Line 3. This expansion will enable us to meet the growing demand for our products and strengthen our position in the market."

Shares of Sunita Tools Limited was last trading in BSE at Rs. 791.05 as compared to the previous close of Rs. 763.60. The total number of shares traded during the day was 32250 in over 189 trades.

The stock hit an intraday high of Rs. 801.75 and intraday low of 735.00. The net turnover during the day was Rs. 24640625.00.

Source : Equity Bulls

Keywords

SunitaTools INE0Q1S01010 IndustrialProducts Expansion ProductionCapacity EmptyArtilleryShells