Reliance Defence, promoted by Anil Ambani’s Reliance Infrastructure, has entered into a strategic partnership with German defence major Rheinmetall AG to manufacture ammunition in India. The collaboration, formalised through a memorandum of understanding, will focus on the production and supply of explosives and propellants for medium and large-calibre ammunition.
Reliance Defence will establish a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra. This facility, to be known as the Dhirubhai Ambani Defence City (DADC), is set to become one of the largest of its kind in South Asia, with an annual capacity to produce up to 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellants. The project is positioned as a significant step in Reliance Defence’s ambition to be among the top three defence exporters in India.
The partnership also includes plans for joint marketing activities and the possibility of further cooperation in the future. The new facility is expected to play a vital role in meeting the requirements of the Indian armed forces and supporting the government’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives. It will also contribute to India’s goal of achieving ₹50,000 crore in defence exports by 2029.
Rheinmetall AG’s CEO, Armin Papperger, highlighted the long-term strategic value of the partnership and reiterated the company’s commitment to collaborating with India. Anil Ambani described the alliance as a transformational moment for India’s private defence manufacturing sector, emphasising the project’s role in strengthening India’s position in the global defence supply chain.
This collaboration marks Reliance Defence’s third major international partnership, following previous alliances with France’s Dassault Aviation and Thales Group. The new manufacturing complex is set to become the largest greenfield defence sector project developed by a private Indian company, reinforcing India’s growing stature in the global defence industry.
