Artillery is no longer a background military tool. It is the backbone of modern land warfare. And within artillery, one calibre dominates global strategy today: 155mm.
Over the last decade, major militaries have increasingly standardized around 155mm systems because they offer the optimal balance of range, lethality, accuracy, and logistical efficiency. NATO platforms, modern tracked howitzers, and long-range artillery programs are built around this calibre. Standardization improves interoperability and simplifies ammunition logistics across allied forces.
What recent conflicts have revealed, however, is not just high demand, but structural imbalance.
Global demand for 155mm shells is currently estimated at 7.5 to 8 million rounds annually. At the peak of the Ukraine–Russia conflict, reported usage reached 60,000 to 100,000 shells per day. Such sustained consumption rapidly depleted stockpiles across multiple countries.
On the supply side, effective global capacity is estimated at only 3 to 3.5 million shells per year, constrained by bottlenecks in certified forging, explosives integration, and specialized machining. Cold War-era reserves have largely been drawn down. New production is increasingly flowing directly into active conflict zones and strategic reserve rebuilding.
This imbalance has altered defence procurement priorities. Ammunition is no longer treated as a background inventory item. It is now viewed as a continuously consumed strategic asset. Industry observers expect structural tailwinds for at least 3 to 5 years, supported by rising defence budgets and stockpile replenishment programs worldwide.
That is the global backdrop.
India’s Structural Opportunity
India’s artillery manufacturing ecosystem has historically been concentrated within public sector ordnance factories. Domestic output levels have not matched the potential scale required in a globally supply-constrained environment.
Recent policy reforms have reshaped the landscape. Licensing processes have been streamlined, and private sector participation has expanded. The removal of earlier procedural bottlenecks has enabled industrial players with metallurgical and precision engineering capabilities to enter ammunition manufacturing.
In a world facing structural shortages, incremental capacity creation is strategically significant.
This is where Goodluck Defence & Aerospace Ltd enters the narrative.
Goodluck Defence & Aerospace: From Licensing to Production
Goodluck Defence & Aerospace Ltd, a subsidiary of Goodluck India Ltd, has secured an Industrial License under the Indian Arms Act, 1959 to manufacture artillery ammunition across calibres including 105mm, 120mm, 125mm, 130mm, and 155mm.
Approved variants include HE M107, ERFB, ERFB BB, and ERFB BT, configurations commonly deployed in modern artillery systems.
As per official disclosures filed on the exchanges by Goodluck India Ltd, the company inaugurated its manufacturing facility in October 2025.
Initial production capacity stands at 1,50,000 shells per annum. The company has outlined a scale-up plan to add another 2,50,000 shells within the next 12 months, taking overall capacity to 4,00,000 shells annually. To support this expansion, an estimated additional investment of approximately ₹5,000 million has been earmarked to strengthen infrastructure and production capabilities.
Commercial production commenced during the quarter ended 31 December 2025. The first completed order is ready for dispatch and is currently waiting for just some final approvals. Management has indicated strong order visibility in the Defence segment for FY27.
The transition from license approval to operational production materially reduces execution uncertainty.
Why 155mm Manufacturing Carries Strategic Weight
Artillery shell manufacturing is not limited to metal forming. It requires certified forging, precision machining, compliance with military-grade quality standards, and integration capabilities that cannot be scaled overnight. Certification timelines and technical compliance create meaningful entry barriers.
Globally, supply constraints have emerged precisely because these capabilities require capital, time, and regulatory clearance.
In such an environment, companies that have secured regulatory approvals, invested in dedicated facilities, commenced commercial production, and established a defined expansion roadmap are positioned within a structurally tight supply market.
Goodluck Defence’s targeted expansion toward 4,00,000 shells annually places it within a meaningful production bracket in India’s private defence manufacturing space, particularly in the globally standardized 155mm segment.
The Broader Defence Thesis
The renewed focus on 155mm artillery shells is not cyclical noise. It reflects a deeper reset in how nations assess ammunition reserves and sustained conflict readiness.
When demand persistently exceeds supply, manufacturing capability becomes strategically valuable.
Against this backdrop, Goodluck Defence & Aerospace has secured industrial licensing across key calibres, commissioned a dedicated artillery manufacturing facility, initiated commercial production, and outlined a defined capacity expansion plan.
For investors tracking India’s defence manufacturing evolution, this development represents participation in a structural global supply gap rather than a short-term order cycle.
The 155mm story is about sustained consumption, constrained global capacity, and strategic manufacturing capability.
Goodluck Defence has positioned itself within that framework at a time when global ammunition economics are undergoing a structural shift.