Reliance Infrastructure (RInfra) promoted Reliance Defence Ammunition has entered into a strategic partnership with Yugoimport of Serbia for ammunition manufacturing in India.
Reliance Infrastructure (RInfra) promoted Reliance Defence Ammunition has entered into a strategic partnership with Yugoimport of Serbia for ammunition manufacturing in India. Anil D Ambani, chairman Reliance Group, after his meeting with Aleksandar Vucic, the President of Serbia, announced the partnership with Yugoimport covering wide areas of cooperation in the Defence sector. Amongst those present during the meeting included defence minister of Serbia, Zoran Dordevic; assistant minister of defence Nenad Moloradovic and CEO of Yugoimport. According to company release, two companies will work together in the field of ammunition amongst others, with projected minimum requirement of Rs20,000 crore over next 10 years from Indian armed forces. In addition, there is a large requirement which is currently being met through imports and there is a potential for greater indigenisation.
Given the large Indian market size, economies of scale offer option for exports. Indian government recently issued eight RFPs for different grade of ammunition, opening the field to the private sector for the first time. Proposal envisages transfer of technology by the original equipment manufacturer (OEMs) and indigenous manufacturing in India. Yugoimport, a state owned enterprise, is a market leader in the field of ammunition and has offered a fully compliant technical solution to meet the Make in India requirements of the government. Ammunition manufacturing by Reliance is proposed at a greenfield facility, catering to the current and future requirements. The company will also undertake joint development of next generation ammunition to meet the future requirements of the Indian armed forces. India currently imports nearly 50% of its ammunition requirements by value term, with an annual spending of more than Rs10,000 crore on ammunition. With new inductions of Air Defence and Artillery guns, this requirement is bound to increase significantly.