In a significant push towards India’s defence self-reliance and export ambitions, Indian conglomerate Reliance Defence and German defence giant Rheinmetall have formalized a strategic partnership aimed at manufacturing and supplying ammunition and explosives. The agreement, cemented through a Memorandum of Understanding (MoU), sets the stage for establishing one of South Asia’s largest greenfield ammunition facilities.
Key Collaboration on Ammunition and Explosives Supply
According to a statement by Rheinmetall, the partnership involves Reliance supplying explosives and propellants for medium- and large-caliber ammunition. In addition to the manufacturing collaboration, both firms will jointly explore marketing opportunities for select defence products, with plans to broaden the partnership based on emerging prospects.
“The partnership will support future needs and open new avenues of cooperation,” Rheinmetall said, underlining the deal’s strategic value for both sides.
Massive Ammunition Facility Planned in Maharashtra
Central to the deal is Reliance’s plan to develop a greenfield manufacturing facility in the Watad Industrial Area in Ratnagiri, Maharashtra. Once completed, the facility is expected to be among the largest of its kind in South Asia.
The site is projected to produce up to:
200,000 artillery shells per year
10,000 tons of explosives annually
2,000 tons of propellants per year
Though no official timeline for the facility’s commissioning was announced, Rheinmetall emphasized its importance in strengthening the Indian armed forces’ supply chains and contributing to India’s target of $5 billion in annual defence exports.
Strategic Access to Raw Materials and Supply Chain Security
Rheinmetall noted that the collaboration not only helps secure access to critical raw materials but also strengthens its global supply chain. “This alliance enhances reliability for our customers and opens up long-term growth opportunities,” the company stated.
Reliance’s Defence Vision: A ‘Transformational Moment’
Calling the tie-up a milestone in India’s defence sector evolution, Reliance Group founder Anil Ambani described it as a “transformational moment.” He said the partnership aligns with the company’s broader goals of creating an integrated defence manufacturing ecosystem.
Reliance had earlier announced plans to build a comprehensive defence production complex under the Dhirubhai Ambani Defence City (DADC) initiative, also located in Watad. According to Rheinmetall, once completed, DADC will be the largest greenfield project ever undertaken by a private player in India’s defence sector.
Broader Global Defence Partnerships on the Horizon
The latest development builds on Reliance’s prior defence partnerships. As reported in a stock exchange filing last year, the company is considering joint ventures with at least six global defence firms to support its DADC initiative. Currently, Reliance has active collaborations with France’s Thales (radars and electronic warfare) and Dassault Aviation (components for Rafale jets).
Rheinmetall’s Parallel Deal with Spain’s Indra
In a related development, Rheinmetall also revealed a separate strategic agreement with Spain’s Indra. Signed under a new MoU, the partnership is focused on armored vehicle programs for the Spanish Armed Forces. The move reflects Rheinmetall’s broader strategy to deepen its international footprint through collaborative defence projects.
The Reliance-Rheinmetall partnership marks a major step forward in India’s defence manufacturing roadmap, with potential to reshape ammunition supply dynamics in South Asia while opening up global market opportunities. It is also a key boost for Prime Minister Narendra Modi’s ‘Make in India’ initiative in the strategic defence sector.
