Anil Ambani. (File photo)
New Delhi: Reliance Defence Limited, promoted by Reliance Infrastructure Limited, has entered into a strategic partnership with German defence manufacturer Rheinmetall AG for ammunition production, marking the third major international alliance for the Anil Ambani-led company.
The collaboration, formalized through a signed agreement between representatives of both firms, will see Reliance supply explosives and propellants for medium and large-calibre ammunition to the Dusseldorf-based Rheinmetall. The partnership also encompasses joint marketing activities for selected products, with both companies exploring opportunities for expanded cooperation.
This alliance follows Reliance Defence's successful strategic partnerships with French aerospace firms Dassault Aviation and Thales Group, positioning the company as a significant player in India’s defence-manufacturing sector.
To support the collaboration, Reliance Defence will establish a greenfield manufacturing facility in Ratnagiri’s Watad Industrial Area in Maharashtra.
The facility, described as among South Asia’s largest, will possess annual production capacity for 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellants.
The partnership aligns with India’s “Make in India” and “Atmanirbhar Bharat” initiatives. The facility is expected to contribute towards India’s ambitious defence export target of ₹50,000 crore by 2029.
For Rheinmetall, the collaboration provides enhanced access to crucial raw materials whilst securing supply chains for its customers and creating additional growth opportunities. The German company will benefit from the state-of-the-art Indian facility’s contribution to supplying the country’s armed forces.
“This strategic partnership between Rheinmetall and Reliance Defence, led by Anil Ambani’s Reliance Group, demonstrates our strong commitment to partnering with India,” said Armin Papperger, chief executive of Rheinmetall AG.
Anil Ambani, founder and chairman of Anil Dhirubhai Ambani Reliance Group, described the alliance as transformational for India’s private defence manufacturing sector.
“We are proud to partner with Rheinmetall AG, one of the world’s most respected defence manufacturing leaders, and to collaborate with visionary leader Armin Papperger,” he said.
The partnership represents a significant component of Reliance Group’s long-term strategy to invest in India's expanding defence manufacturing sector, with the objective of positioning Reliance Defence among the country’s top three defence exporters.
The new facility will form part of the Dhirubhai Ambani Defence City (DADC), currently under development in Ratnagiri’s Watad industrial area.
Once completed, the DADC will represent the largest greenfield defence project ever undertaken by a private company in India, encompassing integrated manufacturing of explosives, ammunition, and small arms.
