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
