Reliance Defence ties up with German arms maker Rheinmetall AG to make explosives for export markets

The Print

22-05-2025

'Reliance Infrastructure Limited promoted Reliance Defence Limited (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,' it added.
To support this collaboration, Reliance Defence Ltd will set up a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra, according to a statement issued by the Reliance Group.
New Delhi: The Anil Ambani-promoted Reliance Defence Limited (Reliance Defence) has tied up with Düsseldorf-based Rheinmetall AG—a company banned from doing business with the Indian defence ministry—to manufacture explosives and propellants for medium and large caliber ammunition for international customers.
Incidentally, this marks the third major partnership for Reliance Defence, following its alliances with Dassault Aviation and the Thales Group of France.
The Reliance Group said the collaboration 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 2012, the German company was blacklisted by the Indian defence ministry over allegations of corruption, and remains so till date. The ban was extended for three more years this year.
Incidentally, state-run Munitions India Limited had sold close to 500 tons of explosives to the Germany company in 2023 and early 2024.
The Reliance Group statement said that the proposed manufacturing facility, to be 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 being amongst top three defence exporters in the country, it added. '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.'
Armin Papperger, CEO of Rheinmetall AG emphasised that 'this strategic partnership…illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Modi'.
On his part, Anil Ambani said, 'We are proud to partner with Rheinmetall AG, one of the world's most respected leaders in defence manufacturing..our objective is clear—to position Reliance Defence among the top 3 defence exporters, enabling India to not only meet its domestic defence needs, but also emerge as a key player in the global defence supply chain. This project marks a major step in the Reliance Group's long-term strategy to invest in the fast-growing defence manufacturing sector.'
With a market capitalisation of over €80 billion, Rheinmetall AG concluded the calendar year 2024 with an annual revenue of €9.8 billion, from operations spanning 171 global locations.
(Edited by Gitanjali Das)
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