Reliance Group Founder & Chairman, Anil Ambani along with Helmut Rauch, CEO, Diehl Defence of Germany on the occasion of signing of strategic cooperation agreement. PC-Financial Express
In a major boost to India’s defence manufacturing ambitions, Reliance Defence—an arm of Reliance Infrastructure—has entered into a strategic cooperation agreement with Germany-based Diehl Defence to produce advanced precision-guided munitions locally. The partnership is expected to generate revenue of up to ₹10,000 crore and significantly enhance India’s defence export capabilities.
The agreement, signed in the presence of Reliance Group Chairman Anil Ambani and Diehl Defence CEO Helmut Rauch, will see the local production of the Vulcano 155 mm Terminally Guided Munition (TGM) system, a state-of-the-art artillery shell equipped with GPS and laser-based targeting for high-precision strikes. (Financial Express)
As part of the agreement, a fully owned greenfield manufacturing facility will be established in Maharashtra’s Ratnagiri district, within the Dhirubhai Ambani Defence City (DADC), specifically at the Watad Industrial Area. This facility will eventually have an annual capacity to produce up to 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellant.
“This strategic alliance not only accelerates the advancement of India’s defence manufacturing capabilities but also positions Reliance Defence as a pivotal player in the global defence supply chain,” said Anil D. Ambani, Founder and Chairman, Reliance Group.
This marks Reliance Defence’s fourth major international defence collaboration, following previous alliances with Dassault Aviation, Thales Group, and Rheinmetall. The company is positioning itself as a key contributor to India’s defence self-reliance under the Make in India and Atmanirbhar Bharat initiatives. The new venture will feature over 50% indigenous value addition.
Reliance aims to be among the top three private-sector defence exporters in India, supporting the national goal of reaching ₹50,000 crore in defence exports by 2029.
Diehl Defence, which will provide core technology and system-level expertise for the project, is a global leader in precision-guided munitions and missile systems, with an annual turnover of over €2 billion. “Diehl Defence looks forward to strengthening the relationship with Reliance Group in the context of TGM for the Indian Armed Forces,” said CEO Helmut Rauch.
The collaboration is poised to not only enhance India’s military capabilities but also open new avenues for high-value defence exports, making it a landmark step in India’s defence manufacturing journey.
