In a major boost to India’s defence indigenisation drive, Reliance Defence has entered into a strategic partnership with Germany’s Diehl Defence to locally manufacture the advanced Vulcano 155mm precision-guided munition system. The collaboration, announced on June 10, underscores India’s growing efforts to reduce dependency on foreign military imports and enhance self-reliance under the ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives.
High-Precision Artillery to Be Made in Maharashtra
As part of the deal, Reliance Defence—an arm of Reliance Infrastructure—will establish a greenfield manufacturing facility in Watad Industrial Area, Ratnagiri, Maharashtra. The plant will produce up to 200,000 artillery shells annually, with Diehl Defence supplying core components such as laser- and GPS-guided technologies.
The project will be located within the Dhirubhai Ambani Defence City and is expected to deliver over 50% indigenous content. This makes it one of the largest private-sector investments in India’s ammunition manufacturing sector.
Strategic Technology Transfer from Germany
The Vulcano 155mm system is designed for high-precision, long-range strikes and is equipped with advanced navigation systems. With both laser and GPS guidance, the ammunition is capable of striking targets with pinpoint accuracy, thereby significantly boosting the Indian Army’s combat effectiveness, especially in complex operational environments.
Helmut Rauch, CEO of Diehl Defence, commented that the partnership would provide India with state-of-the-art guided munitions and strengthen bilateral defence ties. “We are committed to working closely with Reliance Defence to bring high-end terminally guided munitions to India,” he said.
Economic Impact and Export Potential
The deal is expected to generate revenue worth ₹10,000 crore (approximately USD 1.2 billion), with Reliance Defence positioning itself as a leading player in precision munitions manufacturing. The company anticipates this partnership will open doors to major export opportunities and help India achieve its ₹50,000 crore defence export target by 2029.
Anil D Ambani, Chairman of Reliance Group, said the alliance marks a “critical leap forward” for India’s defence manufacturing capability and enhances the country’s standing in the global defence supply chain.
A Broader Push in Defence and Infrastructure
This defence venture adds to the diversified portfolio of Reliance Infrastructure and its group companies, which also include Reliance Power. Both firms operate with zero debt and a net worth of ₹33,000 crore each. Reliance Infrastructure is active in sectors such as power distribution (notably in Delhi), metro rail, and airport development.
Meanwhile, Reliance Power operates 5,340 MW of installed capacity, including the 4,000 MW Ultra Mega Power Project in Sasan—billed as the world’s largest integrated thermal plant.
Strengthening Indo-German Defence Cooperation
The agreement also signals growing Indo-German collaboration in the strategic sector of defence. With Diehl Defence transferring cutting-edge technology and Reliance executing large-scale production in India, the partnership represents a new model of global-local synergy aimed at strengthening India’s military readiness and export capabilities.
This development aligns with New Delhi’s broader diplomatic and industrial goals—developing world-class manufacturing capabilities while building long-term strategic partnerships with countries like Germany.
