Reliance Defence partners Rheinmetall to build major arms facility in Maharashtra
NOOR MOHMMED
24/May/2025

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Reliance Defence signs a major strategic partnership with German firm Rheinmetall to manufacture explosives and ammunition for domestic and global markets
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A massive new plant to be built in Dhirubhai Ambani Defence City in Ratnagiri will produce artillery shells, explosives and propellants at large scale
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The project supports Make in India and aims to make Reliance one of the top three private defence exporters from India by 2029
Reliance Defence Limited, a fully owned subsidiary of Reliance Infrastructure Limited, has entered a major strategic partnership with Rheinmetall AG, one of the world's top defence technology companies based in Germany. The collaboration is focused on building India's largest integrated defence manufacturing facility in the private sector, located in Ratnagiri, Maharashtra.
The proposed facility will be part of the upcoming Dhirubhai Ambani Defence City, a mega industrial zone planned by Reliance Group. The new plant will have the capacity to produce 200000 artillery shells, 10000 tons of explosives, and 2000 tons of propellants annually. This volume will not only cater to India’s growing defence needs but also support Rheinmetall’s global supply chains.
This marks Reliance Defence’s third key global alliance, after partnering with Dassault Aviation and Thales Group of France. The company now expands its presence in the ammunition and energetics sector, including manufacturing of propellants and explosives for medium and large calibre ammunition. The partnership also includes joint marketing of selected defence products and exploring future growth areas in defence production.
Rheinmetall AG is a global leader in defence solutions with a presence in over 171 locations worldwide. It manufactures world-class land platforms like the Leopard 2A7 battle tank, Lynx KF41 infantry fighting vehicle, and Skynex Air Defence System. It is also a global leader in ammunition systems, including cutting-edge smart projectiles like SMArt 155 and Assegai V-LAP.
This project supports India’s Make in India and Atmanirbhar Bharat policies by significantly enhancing indigenous production capacity in ammunition. It also advances Reliance’s aim to become one of India’s top three private defence exporters by 2029.
The project will be located in the Watad industrial area of Ratnagiri, which falls under the Maharashtra Industrial Development Corporation. It will be a 100 percent owned greenfield facility, meaning built from scratch by Reliance Defence. Once operational, the plant will be among the largest private-sector defence facilities in South Asia.
The new plant will also contribute to job creation and regional development. Thousands of direct and indirect employment opportunities are expected to be created through the project in Maharashtra.
Anil Ambani, Chairman of Reliance Group, said the partnership with Rheinmetall will bring advanced ammunition technology to India and support the country's defence self-reliance goals. He called it a cornerstone of the Group’s long-term strategy to participate in and contribute to India's defence sector growth.
Armin Papperger, CEO of Rheinmetall AG, highlighted the importance of this partnership in expanding Rheinmetall's role in India. He reaffirmed the company’s commitment to Prime Minister Narendra Modi’s vision of a self-reliant defence industry in India.
Rheinmetall currently has a global turnover of over USD 11 billion, with a market capitalisation exceeding USD 80 billion. The firm is known for advanced defence platforms, high-precision ammunition and extensive R&D capabilities in military technologies.
The Reliance-Rheinmetall partnership is also expected to boost India’s defence exports. The Indian government aims to increase exports to INR 50000 crore by 2029 and reduce reliance on imported defence products. This initiative contributes directly to that vision.
Reliance Group, led by Anil Ambani, operates across various sectors including infrastructure, energy and defence. Its flagship companies Reliance Infrastructure Limited and Reliance Power Limited are both debt-free and have a combined net worth, turnover and market cap of INR 33000 crore. The Group has over 4 million shareholders.
Reliance Infrastructure is involved in power generation, power distribution and transport infrastructure, including the Mumbai Metro, roads and airports. Reliance Power operates one of the world’s largest integrated power projects, the Sasan Ultra Mega Power Plant in Madhya Pradesh, with a capacity of 4000 MW.
This new defence project is another step in Reliance’s broader ambition to emerge as a key private player in the Indian defence ecosystem, reduce dependency on imports and help India become a net exporter of defence equipment.
Media Contacts:
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Daljeet Singh – 9818802509 – daljeet.s.singh at reliancegroupindia dot com
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Biswajit Baruah – 9920747639 – biswajit.baruah at reliancegroupindia dot com
The upcoming facility in Ratnagiri will not only reshape India’s ammunition manufacturing capacity but will also play a pivotal role in the nation’s journey towards strategic autonomy in defence production. This project signals Reliance Defence’s long-term commitment to building global-scale capabilities in India and becoming a world-class private defence manufacturer.
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