22nd May 2025. Reliance Defence Ltd from India and Düsseldorf-based Rheinmetall AG have agreed on a strategic partnership in the field of ammunition. A memorandum of understanding to this effect has now been signed by representatives of both sides.
Photo: Rheinmetall AG
The collaboration between the companies will include supply of explosives and propellants for medium and large caliber ammunition to Rheinmetall by Reliance. Furthermore the two companies intend to engage in joint marketing activities for selected products and are aiming to further extend their cooperation based on future opportunities.
In order to support this collaboration, Reliance Defence Ltd will set up a greenfield manufacturing facility in the Watad Industrial Area, of Ratnagiri, Maharashtra.
The Reliance manufacturing facility, one of the largest in South Asia, will have an annual capacity to produce up to 200,000 artillery shells, 10,000 tons of explosives and 2,000 tons of propellants.
The cooperation gives Rheinmetall further access to important raw materials and secures not only its supply chains, also in the interests of its customers, but also creates further growth opportunities. In India, the new Reliance state-of-the-art facility will make a significant contribution to supplying the country’s armed forces. At the same time, it will play an important role in realizing the Indian government’s vision of achieving defence exports worth USD 5 billion and an economic power of USD 5 trillion.
Armin Papperger, CEO of Rheinmetall AG emphasized that this Strategic Partnership of Rheinmetall with Reliance Defence led by Anil Ambani’s Reliance Group illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Modi.
We are delighted to partner with Rheinmetall AG, a global major in Defence Industry and a visionary leader like Armin Papperger. This is a transformational moment for the Indian Defence sector and for Reliance Infrastructure’s subsidiary Reliance Defence, said Anil Ambani, founder of the Reliance Group.
Reliance Defence Ltd recently announced plans to set up an integrated project for the manufacturing of explosives, ammunition and small arms under the Dhirubhai Ambani Defence City (DADC).
The DADC is being built in the Watad industrial area in Ratnagiri, Maharashtra, and once completed will be the largest greenfield project in the defence sector ever developed by any private company in India.
🇩🇪 German-Indian 🇮🇳 #cooperation: #Rheinmetall and Reliance enter into #strategic #partnership https://t.co/i1ecpnFn33 pic.twitter.com/HSpXwdj6XA
— Rheinmetall (@RheinmetallAG) May 22, 2025