Project Report on MANUFACTURING OF ARTILLERY SHELL BODIES/BOMBSHELL
[EIRI/EDPR/4785] J.C.: 3005XL
India’s ambitious defense modernization programs are a key driver of growth in the Ammunition industry. The modernization efforts are backed by financial commitments, including a significant allocation of the defense budget to capital expenditures. The Government’s initiatives to promote defense production and export play a pivotal role in this context, aiming to increase domestic production and reduce reliance on imports.
The Indian Ammunition industry is on a fast track to grow. In the current defense budget, 27.67 percent of the total was allocated for capital acquisition. Self-reliance is a significant growth driver, propelling the industry towards greater independence and enhanced capabilities. The Indian Government’s ‘Atmanirbhar Bharat’ initiative underscores this focus by prioritizing domestic production and reducing dependency on imports.
In the positive indigenization list released to date, there are approximately 85 items that have been identified by Ministry of Defense (MoD) to be indigenized by 2034.
COST ESTIMATION
Plant Capacity 1200 Nos/Day
Land & Building (10 Acres) Rs. 34.43 Cr
Plant & Machinery Rs. 134.73 Cr
Working Capital for 2 Months Rs. 83.26 Cr
Total Capital Investment Rs. 262.09 Cr
Rate of Return 36%
Break Even Point 43%
CONTENTS
INTRODUCTION
MARKET SIZE
OVERVIEW OF AMMUNITION IMPORTS AND EXPORTS
IMPORT
EXPORT
CHALLENGES AND OPPORTUNITIES
TECHNOLOGICAL HURDLES
SUPPLY-SIDE CONSTRAINTS
REGULATORY BARRIERS
WAY FORWARD
INTERNATIONAL COLLABORATION
TECHNOLOGICAL CAPABILITIES
INDUSTRY OVERVIEW
MACROECONOMIC OUTLOOK
MACROECONOMIC OVERVIEW
PUBLIC ADMINISTRATION, DEFENCE, AND OTHER SERVICES SECTOR GVA GROWTH
BUDGET ALLOCATION TOWARDS DEFENSE IN INDIA
GEOPOLITICAL OVERVIEW
MANUFACTURING GVA GROWTH
GLOBAL GEOPOLITICAL CONTEXT
INDIA GEOPOLITICAL CONTEXT
IMPACT OF RECENT WARS ON THE DEFENCE SECTOR
IMPACT OF INLAND AND CIVILIAN CONFLICTS ON DEFENCE SECTOR
IMPACT OF TERRORISM ON DEFENCE SECTOR
DEFENCE INDUSTRY OVERVIEW
GLOBAL DEFENCE SPENDING OVERVIEW GLOBAL DEFENCE SPENDING
KEY TRENDS
INDIA’S DEFENCE SPENDING OVERVIEW
INDIA’S DEFENCE SPENDING
SHARE OF CAPITAL VERSUS REVENUE EXPENDITURE
GROWTH DRIVERS OF INDIA’S DEFENCE SPENDING
INDIAN DEFENCE MODERNIZATION PROGRAMME
FINANCIAL BUDGET FOR CAPITAL EXPENDITURE
GOVERNMENT’S ‘AATMANIRBHAR BHARAT’ INITIATIVE TO PRIORITIZE DOMESTIC PRODUCTION ACROSS SECTORS
GOVERNMENT INITIATIVES TO PROMOTE DEFENCE PRODUCTION
EFFORTS TO REDUCE RELIANCE ON IMPORTS AND PROMOTE EXPORTS
STRATEGIC MILITARY DEVELOPMENTS
POSITIVE INDIGENIZATION LIST BARRING AMMUNITION IMPORTS
INDIA’S DEFENCE EXPORTS
INDIA’S DEFENCE IMPORTS
INDIGENIZATION TRENDS AND IMPACT ON IMPORTS AND EXPORTS
INDIAN DEFENCE INDUSTRY EVOLUTION
INDIAN DEFENCE INDUSTRY POLICY AND REGULATION UPDATES
KEY TRENDS IN INDIAN DEFENCE INDUSTRY
INDIA DEFENCE MODERNIZATION PROGRAMS AND INCREASE IN BUDGET FOR MODERNIZATION OF
DEFENCE
FAVOURABLE FACTORS SUPPORTING DEFENCE PRODUCTION AND EXPORT PROMOTION
AMMUNITION MARKET
OVERVIEW OF AMMUNITION AND VALUE CHAIN AND MANUFACTURING
VALUE CHAIN AND MANUFACTURING
GLOBAL AMMUNITION MARKET
GLOBAL AMMUNITION MARKET BREAKDOWN BY VARIOUS TYPES – SMALL, MEDIUM AND LARGE
INDIAN AMMUNITION MARKET
INDIAN AMMUNITION MARKET BREAKDOWN BY VARIOUS TYPES – SMALL, MEDIUM AND LARGE
KEY GROWTH DRIVERS OF AMMUNITION MARKET
COST ANALYSIS OF AMMUNITION
KEY TRENDS IN AMMUNITION
IMPACT OF INDIGENIZATION POLICY
REGULATORY COMPLIANCES FOR SETTING UP A DEFENCE COMPANY IN INDIA
EXPORT POTENTIAL
INDIAN MANUFACTURING INDUSTRY
INTRODUCTION
INVESTMENT
GOVERNMENT INITIATIVES
STEEL INDUSTRY
GLOBAL ECONOMY OUTLOOK
CHART 1: GLOBAL GROWTH OUTLOOK PROJECTIONS (REAL GDP, Y-O-Y CHANGE IN %)
ADVANCED ECONOMIES GROUP
EMERGING MARKET AND DEVELOPING ECONOMIES GROUP
TABLE : GDP GROWTH TREND COMPARISON - INDIA V/S OTHER EMERGING AND DEVELOPING ECONOMIES (REAL GDP, Y-O-Y CHANGE IN %)
GLOBAL & INDIAN STEEL INDUSTRY
GLOBAL STEEL PRODUCTION
GLOBAL PER CAPITA CONSUMPTION (IN KG)
REGION-WISE GLOBAL CAPACITY IN CY22 (IN MT)
GLOBAL STEEL PRODUCTION
GLOBAL CRUDE STEEL PRODUCTION
STEEL PRODUCTION GEOGRAPHICAL REGION IN CY22- 1,885 MT
GLOBAL STEEL CONSUMPTION
GLOBAL STEEL DEMAND
GLOBAL MACROECONOMIC VIEW
GLOBAL GDP GROWTH TO STAY MODERATE
GLOBAL ECONOMIC REVIEW AND OUTLOOK
P: PROJECTED
INFLATION TO EASE AFTER PEAKING IN CY 2022.
CPI INFLATION REVIEW AND OUTLOOK
DOMESTIC FOCUS TO RESTRICT WORLD TRADE GROWTH IN 2023
WORLD TRADE IN GOODS AND SERVICES
P: PROJECTED
GLOBAL FOREIGN DIRECT INVESTMENTS ACROSS WORLD DECLINED 12% IN 2022. INDIA WITNESSED A DECLINE IN TOTAL FDI3 BY 16% IN FISCAL 2023
SUPPORTIVE POLICY ENVIRONMENT TO MAKE INDIA KEY DESTINATION UNDER CHINA PLUS ONE
AMMUNITION MANUFACTURING PROCESS
THE LAPING PROCESS CAN BE BROADLY DEPICTED BY A PROCESS FLOW CHART GIVEN BELOW:
DETAILED SPECIFICATION
155MM AMMUNITION
AMMO 155M FOR IMMEDIATE DELIVERY FROM THE STOCK:
1. 155MM HE QUANTITY 12.100 PCS YEAR OF PRODUCTION 1975-1999
AMMUNITION FILLING PLANT METHOD OF SCREW EXTRUSION
FILLING OF AMMUNITION BY THE METHOD OF SCREW EXTRUSION
BASIC SPECIFICATION
ADVANTAGES OF FILLING AMMUNITION BY SCREW EXTRUSION METHOD
HOW DOES THE SCREW EXTRUSION FILLING WORK?
QUALITY CONTROL
LAYOUT OF FILLING PLANT
BASIC DATA FOR IMPLEMENTATION OF SCREW EXTRUSION FILLING MACHINE
ROOMS DESIGNATION
SA-11 SCREW EXTRUSION FILLING MACHINE
SPECIFICATION
FEATURES
SECTIONS OF THE FILLED ARTILLERY SHELLS
OPTIONS IN SHELL HANDLING SYSTEM (SHS)
OPTION 1
MANUAL SHELL HANDLING SYSTEM
OPTION 2
SEMI - AUTOMATIC SHELL HANDLING SYSTEM
KEY REGULATIONS AND POLICIES IN INDIA
I. INDUSTRY SPECIFIC LEGISLATIONS
DEFENCE ACQUISITION PROCEDURE 2020, AS AMENDED (“DAP”)
DRAFT DEFENCE PRODUCTION & EXPORT PROMOTION POLICY, 2020 AS AMENDED (“DRAFT DPEPP”)
INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951 (“INDUSTRIES ACT”)
THE ARMS ACT, 1959 AS AMENDED (“ARMS ACT”) AND THE ARMS RULES, 2016 AS AMENDED (“ARMS RULES”)
EXPLOSIVES ACT, 1884 AS AMENDED (“EXPLOSIVES ACT”) AND THE EXPLOSIVES RULES, 2008 AS AMENDED (“EXPLOSIVES RULES”)
BUREAU OF INDIAN STANDARDS ACT, 2016 (“BIS ACT”)
I. LABOUR AND WELFARE RELATED LEGISLATIONS
FACTORIES ACT, 1948, AS AMENDED ( THE “FACTORIES ACT”)
OTHER LABOUR LAW LEGISLATIONS
I. INTELLECTUAL PROPERTY LAWS
THE TRADE MARKS ACT, 1999 (THE “TRADEMARKS ACT”)
THE PATENTS ACT 1970, AS AMENDED (THE “PATENTS ACT”)
THE DESIGNS ACT, 2000 (THE “DESIGNS ACT”) AND THE DESIGNS RULES 2001, AS AMENDED
II. FOREIGN INVESTMENT AND TRADE REGULATIONS
FOREIGN EXCHANGE LAWS
FOREIGN TRADE POLICY (THE “FTP”) 2023
CUSTOMS ACT, 1962 (“CUSTOMS ACT”), THE CUSTOMS TARIFF ACT, 1975 AND RULES MADE THEREUNDER
I. OTHER APPLICABLE LEGISLATIONS
VI. STEEL AND STEEL PRODUCTS (QUALITY CONTROL) ORDER, 2020 (“QC ORDER”)
NATIONAL STEEL POLICY, 2017 (“NSP 2017”)
PROJECT LOCATION: GUJARAT
LIST OF DOCUMENTS REQUIRED TO GET FOR LICENSES
DOCUMENTS:
OTHER LICENSES REQUIRED FOR THE SETUP:
PRINCIPLES OF PLANT LAYOUT
STORAGE LAYOUT:
EQUIPMENT LAYOUT:
SAFETY:
PLANT EXPANSION:
FLOOR SPACE:
UTILITIES SERVICING:
BUILDING:
MATERIAL-HANDLING EQUIPMENT:
RAILCOADS AND ROADS :
SOME OF THE FACTORS IN RAIL-TRACK PLANNING ARE:
MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE :
PLANT LOCATION FACTORS
PRIMARY FACTORS
1. RAW-MATERIAL SUPPLY:
2. MARKETS:
3. POWER AND FUEL SUPPLY:
4. WATER SUPPLY:
5. CLIMATE:
SPECIFIC FACTORS
6. TRANSPORTATION:
7. WASTE DISPOSAL:
8. LABOR:
9. REGULATORY LAWS:
10. TAXES:
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME ATTACK:
14. FLOOD AND FIRE CONTROL:
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
DEPRECIATION:
FIXED ASSETS:
WORKING CAPITAL:
BREAK-EVEN POINT:
OTHER FIXED EXPENSES:
MARGIN MONEY:
TERM LOANS:
TOTAL LOAD:
LAND AREA/MAN POWER RATIO:
UTILITIES
POWER
WORKING
TOTAL MANPOWER AND PAYROLL
UTILITIES
PLANT & MACHINERY MANUFACTURER
VESSEL SUPPLIERS
LABORATORTY EQUIPMENTS MANUFACTURERS
D.G. SET MANUFACTURERS & SUPPLIERS
SUPPLIERS OF BILLET CUTTING MACHINE
SUPPLIERS OF ELECTROPLATING PLANT
SUPPLIERS OF ANNEALING FURNACES
SUPPLIERS OF HEAT TREATMENT FURNACE
SUPPLIERS OF HARDNESS TESTING MACHINE
SUPPLIERS OF CLOSE DIE HOT FORGING MACHINE
SUPPLIERS OF FORGING DIES
SUPPLIERS OF INDUCTION HEATING FURNACE
SUPPLIERS OF CNC MACHINING CENTRE
SUPPLIERS OF METAL TESTING MACHINE
SS PIPE & TUBE MANUFACTURER
ELECRICAL GOOD & SWITCH MANUFACTURE
ELECTRICAL PANEL & BOARD MANUFACTURERS
LATHE MACHINE MANUFACTURERS
CNC MACHINE MANUFACTURERS
PANEL/SHEET BENDING MACHINE MANUFACTURERS
BRAZING MACHINE MANUFACTURERS
EXPANDER MANUFACTURER
SUPPLIERS/MANUFACTURERES OF EOT CRANE
WEIGHING BREIDGE MANUFACTURER
STEEL PRODUCTS MANUFACTURING PLANT & MACHINERY SUPPLIERS
PREHEATING FURNACE MANUFACTURERS
HIGH CAPCITY BOILERS MANUFACTURERS & SUPPLIERS
SWOT ANALYSIS
SWOT FOR THE DEFENCE INDUSTRY
ORGANIZATION CHART
PLANT LAYOUT
IMPLEMENTATION SCHEDULE
DRAFT
DEFENCE PRODUCTION & EXPORT PROMOTION POLICY (DPEPP) 2020
1. PREAMBLE
2. VISION
3. GOALS AND OBJECTIVES
4. FOCUS AREAS
5. PROCUREMENT REFORMS
6. INDIGENIZATION AND SUPPORT TO MSMES/STARTUPS
IN ORDER TO ACHIEVE THIS OBJECTIVE, FOLLOWING STRATEGIES ARE PROPOSED:
7. OPTIMIZE RESOURCE ALLOCATION
8. INVESTMENT PROMOTION, FDI AND EASE OF DOING BUSINESS
9. INNOVATION AND R&D
DEFENCE R&D
INNOVATION
10. DPSUS/OFB
11. QUALITY ASSURANCE AND TESTING INFRASTRUCTURE
12. EXPORT PROMOTION
13. GOVERNANCE
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
