Reliance Group chairman Anil Ambani (L) with Diehl Defence’s Helmut Rauch. (Photo: Reliance Defence)
Mumbai: Reliance Defence Limited has signed a strategic cooperation agreement with Germany’s Diehl Defence to manufacture terminally guided munitions (TGM) in India, on Tuesday. This marks a significant step in boosting the country’s defence-manufacturing efforts.
According to a Reliance Defence news release, the partnership will establish local production of Vulcano 155mm precision-guided munition (PGM) systems for the Indian armed forces. The advanced ammunition incorporates laser- and GPS-guided targeting technology designed to enhance striking accuracy.
Reliance Defence estimates the partnership could generate ₹10,000 crore in revenue through development and supply of the ammunition systems. The company aims to become one of India’s top three private defence exporters.
As prime contractor, Reliance Defence will lead the programme execution while Diehl Defence will provide technology and system expertise. The manufacturing initiative includes over 50% indigenous value addition, aligning with the government’s “Make in India” policies.
This represents Reliance Group’s fourth major global defence partnership, following collaborations with Dassault Aviation, Thales Group, and Rheinmetall.
“Diehl Defence looks forward to strengthening the current relationship with Reliance Group in the context of TGM for the Indian armed forces,” said Helmut Rauch, chief executive of Diehl Defence.
The founder chairman of Reliance Group, Anil Dhirubhai Ambani, described the partnership as accelerating India’s defence manufacturing capabilities while positioning the company as a key player in the global defence supply chain.
Reliance Defence will establish a manufacturing facility in Watad Industrial Area in Maharashtra’s Ratnagiri. The facility is expected to support India’s defence export target of ₹50,000 crore by 2029.
The agreement is seen as yet another step in India’s efforts to reduce dependence on foreign defence suppliers and build domestic manufacturing capacity in critical military supplies.
