GOODLUCK

to Invest ₹400 Crore to Quadruple Artillery Shell Production

, a manufacturer of specialized steel and engineering products, plans to invest ₹400 crore to expand the production of artillery shells at its defense arm in Sikandrabad, Uttar Pradesh. → The investment, to be completed over 12–18 months through a mix of debt and equity, aims to raise the annual production capacity from 150,000 to 400,000 artillery shells. → The company is seeking to diversify its revenue base and balance its traditional export-oriented portfolio, which currently faces global trade uncertainties and 50% US tariffs on Indian exports. → Goodluck's traditional business, primarily focused on auto and engineering exports, contributed about ₹1,000 crore (25%) to its ₹4,000 crore revenue last financial year. → The expansion will significantly increase the contribution of the defense sector, which currently accounts for only 2% of the company's total revenues. Management is targeting a defense revenue of ₹300 crore by March 2027 for the defense unit, which was incorporated in 2024 with an initial investment of ₹275 crore. → The defense segment offers significantly higher profitability, with EBITDA margins around 20%, which is roughly twice the 8–10% margins of the company's specialty steel and engineering products businesses. Goodluck is looking to strengthen its presence in the defense sector, competing with major Indian conglomerates like Adani Defence, , and .