Anil Ambani's Reliance Defence signs ammunition deal with German firm

New Delhi: Anil Ambani's Reliance Defence has signed a strategic partnership agreement with German arms manufacturer Rheinmetall AG for the supply of ammunition. This includes artillery shells and explosives, from a new facility planned in Maharashtra, reported PTI.

Reliance Defence, promoted by Reliance Infrastructure Ltd, and Düsseldorf-based Rheinmetall AG formalised the partnership through a signed agreement, the Indian company said in a statement.

This is the group’s third major defence collaboration following joint ventures with Dassault Aviation and Thales of France.

The partnership will involve Reliance supplying explosives and propellants for medium and large-calibre ammunition to Rheinmetall. Both companies also plan to jointly market selected products and explore further cooperation opportunities.

Rheinmetall AG, with a €80 billion portfolio, is a leader in armoured vehicles, infantry fighting vehicles, advanced air defence systems, and ammunition technology, including the Leopard 2A7 main battle tank.

The collaboration supports India’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, aiming to boost the country’s defence manufacturing and position it among the world’s leading defence exporters.

To support this, Reliance Defence will establish a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra. This facility will be one of South Asia’s largest, with an annual capacity of 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellants. Investment details were not disclosed.

This facility will help Reliance Defence pursue its goal of becoming one of India’s top three defence exporters.

The partnership will also give Rheinmetall better access to critical raw materials, secure supply chains, and growth opportunities. The new facility will significantly contribute to supplying India’s armed forces.

The defence manufacturing complex aligns with India’s target to achieve ₹50,000 crore in defence exports by 2029.

Armin Papperger, CEO of Rheinmetall AG, said, “This strategic partnership with Reliance Defence underlines our strong commitment to India, guided by Prime Minister Modi’s leadership.”

Anil D Ambani, founder and chairman of Reliance Group, said, “We are proud to partner with Rheinmetall AG, a global leader in defence manufacturing. This collaboration marks a transformational moment for India’s private defence sector.”

He added that the partnership supports the vision of ‘Atmanirbhar Bharat’ and aims to position Reliance Defence among the top three defence exporters, helping India meet domestic needs and become a key player globally.

Reliance Defence recently announced plans to develop an integrated manufacturing project for explosives, ammunition, and small arms under the Dhirubhai Ambani Defence City (DADC) in the same Ratnagiri industrial area. Once complete, DADC will be the largest greenfield private defence project in India.