| Project Value | ₹545 CrStrategic MoU |
|---|---|
| Annual Capacity | 100M RoundsMunitions |
| PE TTM | 11.06Sector 19.07 |
| Market Cap | ₹1,131.7 CrMetals & Mining |
| Execution period | 2028–2029 |
| Deal value | ₹545 Cr |
| Share of market cap | 48.2% |
| Share of annual revenue | 47.6% |
Key highlights
- Project valued at €50 million (approximately ₹545 crore) for a dedicated ammunition production line
- Collaboration between subsidiary Tembo Classic Engineering and Belgium's Lachaussee SA
- Designed annual production capacity of 100 million rounds for two types of ammunition
- Project execution and machinery deliveries are scheduled to take place during 2028 and 2029
- Expansion supports the Make in India vision for domestic defense manufacturing capabilities
What Is the Partnership?
Tembo Global Industries, through its subsidiary Tembo Classic Engineering Pvt. Ltd., has entered a Memorandum of Understanding with Belgium-based Lachaussee SA. The strategic collaboration aims to establish a complete manufacturing facility in India dedicated to producing two specific types of ammunition.
Valued at approximately 50 million euros, the project includes the setup of high-precision machinery and technology transfer. The production line is designed to deliver a substantial annual capacity of 100 million rounds, with the first deliveries scheduled for the 2028 and 2029 cycles, marking a significant entry into the domestic defense supply chain.
Partner Profile
- Headquartered in Milmort, Belgium, Lachaussee SA is a specialized engineering company with a heritage dating back to 1830
- The company is globally recognized for designing high-precision machinery used in the production of ammunition, primers, and detonators
- Lachaussee provides end-to-end solutions including equipment design, installation, commissioning, and technical commissioning for pyrotechnic components
- The firm has a long-standing history of supplying defense-related manufacturing technologies to international markets and government agencies
What It Unlocks
The agreement aligns with the Make in India initiative, which seeks to reduce import dependency and foster a robust domestic defense manufacturing ecosystem. By integrating Lachaussee’s specialized engineering expertise, Tembo Global strengthens its capabilities in project execution and high-precision manufacturing. This move allows the company to transition from its traditional metal component roots into the high-barrier defense sector.
The establishment of this production line provides a foundation for long-term growth in the strategic ammunition market, positioning the company as a contributor to India’s goal of strengthening domestic defense production infrastructure.
Financial and Business Context
- Tembo Global reported a TTM net profit of 102.36 crore, reflecting a year-on-year annual growth of 79.21 percent
- The company operates with a trailing twelve months price-to-earnings ratio of 11.06, compared to the industry average of 34.04
- Consolidated operating revenue for the trailing twelve months stands at 1,144.41 crore, supported by its core industrial and EPC segments
- Institutional holding in the company remains at 9.81 percent, with Foreign Institutional Investors accounting for 8.25 percent of the total equity
“This partnership brings together complementary engineering and manufacturing capabilities to establish a complete ammunition production line in India. We believe this association will further strengthen our presence in the defence manufacturing ecosystem and provide a strong foundation for sustainable growth in this strategic sector.”
| Share price | ₹58.47 |
|---|---|
| Market capitalisation | ₹1,131.70 Cr |
| Revenue (annual) | ₹1,090.19 Cr |
| Net profit (annual) | ₹91.33 Cr |
| Revenue (latest quarter) | ₹302.35 Cr-12.61% vs previous quarter |
| Net profit (latest quarter) | ₹30.05 Cr+11.66% vs previous quarter |
| P/E (TTM) | 11.06×Sector 19.07× |
| Promoter holding | 39.04%+2.66% QoQ |
| FII holding | 8.25%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Tembo Global Industries Limited announcing a Memorandum of Understanding for a new ammunition production facility. Market figures from a third-party data provider.
