Reliance Defence inks pact with German firm for artillery shells, explosives supply

New Delhi: Anil Ambani’s Reliance Defence has signed an agreement with German arms manufacturer Rheinmetall AG for the supply of ammunitions like artillery shells and explosives from a new facility to be set up in Maharashtra.

“Reliance Infrastructure Ltd-promoted Reliance Defence Ltd (Reliance Defence) and Dusseldorf-based Rheinmetall AG have agreed on a strategic partnership in the field of ammunition. An Agreement to this effect has now been signed by the representatives of both companies,” the Indian firm said in a statement.

This is the third defence tie-up by the group after joint ventures with Dassault Aviation and Thales of France.

“The collaboration between the companies will include the supply of explosives and propellants for medium and large calibre ammunition to Rheinmetall by Reliance,” it said.

Furthermore, the two companies intend to engage in joint marketing activities for selected products and may extend their cooperation based on future opportunities.

The EUR 80 billion Rheinmetall AG excels in critical domains, such as armoured vehicles, infantry fighting vehicles, advanced air defence systems, and state-of-the-art ammunition technology. At the pinnacle of its portfolio is the Leopard 2A7, widely recognised as one of the most sophisticated main battle tanks worldwide.

The strategic partnership will strengthen India’s defence manufacturing capabilities aligning with the government’s flagship ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. It advances the vision to position India among the world’s leading defence exporters.

“In order to support this collaboration, Reliance Defence Ltd will set up a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra. The manufacturing facility, one of the largest in South Asia, will have an annual capacity to produce up to 2,00,000 artillery shells, 10,000 tonnes of explosives and 2,000 tonnes of propellants,” the statement said without giving details of investment to be made.

This new facility will help Reliance Defence achieve its objective of being among the top three Defence exporters in the country.

“The cooperation gives Rheinmetall further access to important raw materials and secures not only its supply chains, but also the interest of its customers, but also creates further growth opportunities. In India, the new state-of-the-art facility will make a significant contribution to supplying the country’s armed forces,” it said.

The defence manufacturing complex will contribute to supporting India’s ambitious defence export target of Rs 50,000 crore by 2029.