Reliance, Rheinmetall Partner to Boost Ammunition Production

• Reliance Defence and Germany’s Rheinmetall formed a strategic partnership for ammunition supply and co-marketing select products.
• Reliance will set up a major plant in Ratnagiri to produce artillery shells, explosives, and propellants, boosting defence exports.
• The alliance supports ‘Make in India’ and aims to strengthen India’s position as a global defence exporter.

Officials announced on Thursday that Reliance Defence and Germany's Rheinmetall have established a 'strategic partnership' in ammunition. According to an official statement, representatives from the Reliance Infrastructure Limited-promoted company and Rheinmetall, located in Dusseldorf, have now signed an agreement.

“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,' it said.

To facilitate this partnership, Reliance Defence Limited will establish a new manufacturing plant in the Watad Industrial Area in Ratnagiri, Maharashtra.

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'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 Reliance Group said in a statement.

 'Reliance Infrastructure Limited promoted Reliance Defence Limited (Reliance Defence) and Dusseldorf based Rheinmetall AG have agreed on a strategic partnership in the field of ammunition,' it said.

The strategic alliance will enhance India's defence production abilities in line with the government's key initiatives of 'Make in India' and 'Atmanirbhar Bharat.' It promotes Prime Minister Narendra Modi's goal to 'place India among the top global defence exporters', the statement noted.

The partnership provides Rheinmetall with enhanced access to essential raw materials, ensuring the security of its supply chains for the benefit of its customers, while also creating additional growth prospects, it stated.

'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,' Armin Papperger, the CEO of Rheinmetall AG, was quoted as saying in the statement.

'This strategic partnership brings cutting-edge capabilities to India, marking a transformational moment for country's private defence manufacturing sector,' he added.

Ambani stated that this initiative represents a significant advancement in the Reliance Group's long-term plan to invest in the rapidly expanding defense manufacturing industry.

Reliance Defence Ltd has recently revealed intentions to establish a comprehensive project for the production of explosives, ammunition, and small arms within the Dhirubhai Ambani Defence City (DADC).