Reliance Defence Limited, a company promoted by Reliance Infrastructure Limited, has entered into a strategic partnership with Rheinmetall AG, a defence technology company headquartered in Düsseldorf, Germany. The agreement focuses on collaboration in the field of ammunition manufacturing and supply.
This marks the third strategic collaboration for Reliance Defence, following earlier partnerships with Dassault Aviation and Thales Group of France.
As part of this agreement, Reliance Defence will supply Rheinmetall with explosives and propellants for medium and large caliber ammunition. Both companies also plan to undertake joint marketing initiatives for selected defence products. The partnership may expand further based on future opportunities.
To support this collaboration, Reliance Defence will establish a new Greenfield manufacturing facility in the Watad Industrial Area, located in Ratnagiri, Maharashtra. The facility is expected to be one of the largest of its kind in South Asia, with a projected annual capacity of:
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200,000 artillery shells
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10,000 tons of explosives
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2,000 tons of propellants
This development aligns with India’s ongoing efforts to increase domestic defence manufacturing under initiatives such as ‘Make in India’ and ‘Atmanirbhar Bharat’. The project aims to contribute to India’s defence production and export capabilities, which include a national target of INR 50,000 crore in defence exports by 2029.
For Rheinmetall, the partnership offers improved access to critical raw materials and supports supply chain stability. The collaboration is intended to serve both the Indian Armed Forces and international markets.
