Reliance Infrastructure promoted Reliance Defence and Düsseldorf based Rheinmetall AG have agreed on a strategic partnership in the field of ammunition. An Agreement to this effect has now been signed by the representatives of both companies.
This marks the third major partnership for Reliance Defence, following its successful strategic alliances with Dassault Aviation and the Thales Group of France.
The collaboration between the companies will include supply of explosives and propellants for medium & 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 will set up a Greenfield manufacturing facility in the Watad Industrial Area, of Ratnagiri, Maharashtra.
The 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. This new facility will help Reliance Defence achieve its objective of amongst top three Defence exporters in the country.
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 state-of-the-art facility will make a significant contribution to supplying the country's armed forces. The defence manufacturing complex will contribute in supporting India's ambitious defence export target of Rs 50,000 crore by 2029.