Reliance & Diehl Forge ₹10,000 Cr Pact to Produce Vulcano Smart Ammunition in India
Reliance Defence, a unit of Reliance Infrastructure, has signed a landmark agreement with Germany’s Diehl Defence to manufacture advanced Vulcano 155 mm precision-guided ammunition domestically. Valued at ₹10,000 crore, this pact strengthens India’s push for self-reliance in defence and deepens its technical partnerships with global leaders.
Vulcano ammunition
The Vulcano shell represents next-generation artillery, equipped with laser and GPS guidance as well as electronic counter-countermeasure features. This precision capability enables accurate targeting at extended ranges, with the ability to home in on targets using onboard sensors and resist enemy signal jamming.
Defence pact
Under the partnership, Reliance Defence will act as the prime contractor, while Diehl will provide proprietary technology and system integration expertise. A greenfield factory is planned at the Watad Industrial Area in Ratnagiri as part of the Dhirubhai Ambani Defence City (DADC) project—replicating the private-sector roadmap in defence manufacturing initiated in 2019.
Indigenous munitions drive
The collaboration is set to achieve over 50% indigenous content under the Make in India and Atmanirbhar Bharat vision. Reliance aims to emerge as one of India’s top private-sector defence exporters through annual outputs of nearly 200,000 guided shells, besides crafting large volumes of propellants and explosives domestically.
Strategic impact
The initiative is expected to generate ₹10,000 crore in revenue and contribute to the national defence export target of ₹50,000 crore by 2029. It also aligns with India’s priorities for building homegrown technological capabilities and enhancing defence manufacturing ecosystems in collaboration with international partners.
Share price of Reliance Infrastructure surged nearly 3.5% following the announcement, reflecting growing investor confidence in the venture’s potential.
