Image Credit: Sourav Mishra
Reliance Defence, Rheinmetall Sign Pact for Artillery and Explosives
In a significant boost to India’s defense manufacturing sector, Anil Ambani-led Reliance Defence has signed a strategic partnership with German defense major Rheinmetall AG to produce and supply artillery shells and explosives. The pact is a step forward in India’s ongoing efforts to bolster indigenous defense production under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.
New Ammunition Plant in Maharashtra
Under the terms of the agreement, Reliance Defence will establish a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra. Once operational, it is expected to be among the largest such facilities in South Asia.
The facility will have the annual capacity to manufacture:
- 200,000 artillery shells
- 10,000 tonnes of explosives
- 2,000 tonnes of propellants
This production capability is aimed at meeting domestic demand as well as export requirements, further integrating India into the global defense supply chain.
Scope of the Indo-German Defence Partnership
The partnership with Rheinmetall AG covers a broad spectrum of ammunition manufacturing and marketing, including:
- Production and supply of propellants and explosives for medium and large-caliber ammunition
- Joint promotion and marketing of select defense products globally
- Exploration of new joint manufacturing opportunities in related sectors
Rheinmetall, headquartered in Düsseldorf, is known globally for its expertise in defense systems, particularly ammunition, armored vehicles, and air defense solutions. The partnership gives the German firm an entry point into India’s growing defense market while enabling Reliance to tap into advanced European defense technology.
Strategic Significance and Future Expansion
This tie-up marks Reliance Defence’s third major defense collaboration, after its earlier agreements with Dassault Aviation and Thales Group. It is expected to:
- Strengthen India’s defense manufacturing ecosystem
- Contribute significantly to India’s target of ₹50,000 crore in defense exports by 2029
- Secure critical raw materials and develop long-term ammunition supply chains
Commenting on the development, Reliance Group Chairman Anil Ambani said, “This strategic partnership brings cutting-edge capabilities to India and will catalyze transformation in the country’s private defense sector.”
