Goodluck India to Invest ₹500 Crore to Boost Artillery Shell Output from 1.5 Lakh to 4 Lakh Units Annually

Ghaziabad-based Goodluck India Limited is preparing to expand its defence manufacturing capacity. Through its subsidiary, Goodluck Defence & Aerospace, the company plans to increase annual production of artillery shell casings from the current 150,000 units to about 400,000 units per year. The expansion will involve an investment of approximately ₹500 crore.

Goodluck India recently received an industrial licence under the Arms Act, 1959, to manufacture a range of medium-calibre shells, including 105mm, 120mm, 125mm, 130mm, and 155mm types. These include standard high-explosive and extended-range variants. The approval allows the company to begin large-scale production for both domestic and export markets.

The manufacturing facility in Sikandrabad, located in Bulandshahr district of Uttar Pradesh, has already produced prototype batches of 155mm M107 shells. Trial production is expected to begin in the third quarter of FY26. The investment will be used to expand production infrastructure, install new machinery, and improve quality control systems to meet required standards.

According to the company, the ₹500 crore expansion will be financed through internal resources and borrowings. The plan is intended to meet increasing domestic demand while also exploring export opportunities. With global demand for ammunition rising, Goodluck India has received early interest from foreign customers, including some in Czechia and other European countries. The company expects its defence business to generate additional revenue of about ₹250–300 crore over the next two years.

The defence segment currently contributes a small portion of Goodluck India’s total operations, which also include steel tubes, precision structures, and automotive components. The shift toward defence manufacturing is part of a broader plan to diversify into new product areas. The company expects to achieve 50–60 percent capacity utilisation in the first year of expansion, gradually increasing as new contracts are secured.

Goodluck’s initiative aligns with the government’s “Atmanirbhar Bharat” programme, which aims to strengthen local defence production and reduce reliance on imports. India’s requirement for artillery shells continues to grow as production and training needs expand. Developing a local supply base supports both readiness and cost stability.

The upcoming scale-up will involve the addition of new automated forming and inspection systems to ensure production consistency. Shell casings require precision and strict quality standards, and the company is setting up processes to maintain uniform output. Work is also underway to establish long-term arrangements for raw materials and component supplies.

Reaching full capacity will depend on order flow, export permissions, and sustained production quality. Financial and operational management will be important to maintain efficiency as capital spending increases.

Overall, Goodluck India’s expansion reflects a gradual strengthening of private participation in India’s defence manufacturing sector. The company’s investment is expected to contribute to the local production base while supporting future export potential.