Reliance Defence enters into strategic partnership with Rheinmetall AG
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Reliance infrastructure promoted, Reliance Defence Limited enters into strategic partnership with Rheinmetall AG, one of the World’s largest defence manufacturers
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After two successful joint ventures with global majors, Dassault Aviation and Thales Group of France, this is the 3rd significant international partnership for Reliance Defence
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Rheinmetall with turnover of more than usd 11 bn (Rs. 100,000 cr) and market cap of more than usd 80 Bn (Rs. 700,000 Cr) is the market leader in the field of armoured vehicles, ammunition and infantry fighting vehicles
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Reliance Defence aims to rank among India’s top three defence exporters, to set up 100% owned greenfield facility at Dhirubhai Ambani Defence City (DADC), Maharashtra
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The greenfield facility at DADC, Ratnagiri, Maharashtra will house India’s largest integrated defence manufacturing facility
Mumbai, May 22. 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.
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.
The strategic partnership will strengthen India’s defence manufacturing capabilities aligning with the Government of India’s flagship ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. It advances the vision of Prime Minister Narendra Modi to position India among the world’s leading defence exporters.
In order to support this collaboration, Reliance Defence Ltd 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 INR 50,000 crore by 2029.
Armin Papperger, CEO of Rheinmetall AG emphazised that “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”.
Anil D. Ambani, Founder and Chairman, Reliance Group said “We are proud to partner with Rheinmetall AG, one of the world’s most respected leaders in defence manufacturing, and to collaborate with visionary leader, Armin Papperger. This strategic partnership brings cutting-edge capabilities to India, marking a transformational moment for country’s private defence manufacturing sector. Guided by the vision of ‘Aatmanirbhar Bharat’, as championed by Prime Minister, Mr. Narendra Modi, 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.”
Reliance Defence Ltd recently announced plans to set up an integrated project for the manufacturing of explosives, ammunition and small arms under the Dhirubhai Ambani Defence City (DADC).
The DADC is being built in the Watad industrial area in Ratnagiri, Maharashtra, and once completed will be the largest greenfield project in the defence sector ever developed by any private company in India.
