Reliance Defence, promoted by Reliance Infrastructure, has signed a major Strategic Cooperation Agreement with Germany-based Diehl Defence to locally produce advanced precision-guided ammunition systems for the Indian armed forces.
The agreement will lead to the manufacturing of the Vulcano 155 mm Terminally Guided Munition (TGM) system in India. This advanced technology, using GPS and laser-based targeting, is designed to deliver high-precision strikes and will significantly boost India’s defence capabilities.
Reliance Defence eying Rs 10,000 crore revenue from defence contract
Reliance Defence expects to generate up to Rs 10,000 crore in revenue from this new venture. The agreement reflects Reliance’s plan to become a top player in India’s growing defence manufacturing sector.
This is Reliance Group’s fourth major international defence partnership. The company has previously teamed up with Dassault Aviation, Thales Group, and Rheinmetall.
Reliance Defence: Key private player in defence sector
The new deal further strengthens Reliance Defence’s position as a key private-sector player in India’s defence sector and as a partner in India’s goal of self-reliance in defence technology. The project will involve more than 50 percent indigenous value addition, aligning with the Government of India’s Make in India and Atmanirbhar Bharat initiatives.
“This strategic alliance not only accelerates the advancement of India’s defence manufacturing capabilities but also positions Reliance Defence as a pivotal player in the global defence supply chain,” said Anil D. Ambani, Founder and Chairman of Reliance Group.
Manufacturing unit to come up in Maharashtra
As part of the agreement, Reliance will set up a fully owned greenfield manufacturing facility in the Watad Industrial Area, located within the Dhirubhai Ambani Defence City (DADC) in Ratnagiri, Maharashtra. This high-tech plant will produce precision-guided munitions to support India’s military needs and boost defence exports.
The manufacturing facility will eventually have an annual capacity to produce up to 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellant.
Reliance aims to become one of the top three private defence exporters from India while supporting the country’s ambitious defence export target of Rs 50,000 crores by 2029.
Diehl to provide technology and system expertise
Germany’s Diehl Defence will supply the key technology and system-level expertise for the production of the Vulcano 155 mm ammunition.
“Diehl Defence looks forward to strengthen the current relationship with Reliance Group in the context of TGM for the Indian Armed Forces,” said Helmut Rauch, CEO of Diehl Defence.
Diehl Defence is a global leader in guided ammunition, missile systems, and air defence technologies, with an annual turnover of over €2 billion (approximately Rs 20,000 crore). The company supplies equipment to armed forces in Germany and around the world.