The Anil Ambani-owned Reliance Defence Limited, which is a subsidiary of Reliance Infrastructure Limited, has announced in an official statement that it has signed a strategic agreement with Germany-based Rheinmetall AG to manufacture military grade ammunition in India.

The partnership will focus on the supply of explosives and propellants for medium and large-calibre ammunition, with joint marketing of selected products and scope for further collaboration, according to a company statement.

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“The new state-of-the-art facility will make a significant contribution to supplying the country’s armed forces. The defence manufacturing complex will support India’s ambitious defence export target of Rs 50,000 crore by 2029,” the Anil Ambani-owned Reliance Group said in a statement.

“This strategic partnership brings cutting-edge capabilities to India, marking a transformational moment for the country’s private defence manufacturing sector. The project marks a major step in the Reliance Group’s long-term strategy to invest in the fast-growing defence manufacturing sector,” Founder and Chairman Anil D Ambani said.

Reliance Defence plans to establish a fully-owned greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, in Maharashtra. The plant is expected to become one of the largest of its kind in South Asia, with proposed annual production capacities of 200,000 artillery shells,
10,000 tonnes of explosives and 2,000 tonnes of propellants.

“This strategic partnership of Rheinmetall with Reliance Defence, led by Anil Ambani’s Reliance Group, illustrates our strong commitment to partner with India,” Rheinmetall AG’s CEO Armin Papperger said.

The collaboration supports Reliance Defence’s ambition to become one of India’s top three defence exporters. The new unit will be integrated into the Dhirubhai Ambani Defence City (DADC), which is an upcoming comprehensive defence production complex being constructed in Ratnagiri. Once completed, it will represent the largest greenfield defence initiative undertaken by a private company in India, according to the company statement.