Anil Ambani’s Reliance Defence Ltd has entered into a strategic partnership with German arms manufacturer Rheinmetall AG to supply artillery shells, explosives, and propellants, marking a significant development in India’s private defence manufacturing sector.

The two companies have signed a memorandum of understanding that outlines a collaboration focused on the supply of explosives and propellants for medium and large calibre ammunition, with plans to jointly market selected products and potentially expand cooperation in the future.

To support this partnership, Reliance Defence will establish a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra.

This facility, set to become one of the largest in South Asia, will have an annual production capacity of up to 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellants.

The facility is also part of the broader Dhirubhai Ambani Defence City (DADC) project, which, upon completion, will be the largest greenfield defence sector project ever developed by a private company in India.

This agreement is the third major defence tie-up for Reliance Defence, following joint ventures with Dassault Aviation and Thales of France. The partnership aligns with the Indian government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, aiming to boost indigenous defence manufacturing and position India as a leading global defence exporter.

The new facility is expected to contribute significantly to India’s target of achieving ₹50,000 crore in defence exports by 2029 and help Reliance Defence become one of the top three defence exporters in the country.

For Rheinmetall, the collaboration not only secures access to critical raw materials and strengthens its supply chains but also opens up further growth opportunities in the Indian and global markets.

The partnership is seen as a transformational step for India’s private defence sector, bringing advanced manufacturing capabilities and supporting the modernisation of the country’s armed forces.

Both company leaders have highlighted the strategic importance of this alliance. Armin Papperger, CEO of Rheinmetall AG, emphasised the company’s commitment to partnering with India under Prime Minister Modi’s leadership, while Anil D Ambani described the partnership as a milestone that brings cutting-edge capabilities to India and advances its long-term strategy in the fast-growing defence manufacturing sector.

Based On PTI Report