Reliance Defence has entered a strategic cooperation agreement with Germany’s Diehl Defence to manufacture the advanced Vulcano 155mm precision-guided munition system in India. This partnership supports the government’s Make in India and Atmanirbhar Bharat initiatives.
Reliance Defence, a subsidiary of Reliance Infrastructure, announced a significant collaboration with Diehl Defence to locally produce the Vulcano precision-guided artillery shells. This initiative is aimed at strengthening India’s defence manufacturing capabilities by reducing reliance on imports and fostering domestic production.
The manufacturing will take place at a newly established greenfield facility located in the Watad Industrial Area, Ratnagiri, Maharashtra. This site will be part of the Dhirubhai Ambani Defence City (DADC), reflecting a significant investment in India’s defence infrastructure.
The Vulcano system is designed for long-range precision strikes and utilises laser and GPS guidance technologies. This advanced munition provides the Indian Armed Forces with high accuracy in modern combat environments, where precision targeting is crucial.
Reliance Defence will serve as the prime contractor overseeing manufacturing operations, while Diehl Defence will contribute the essential technology and system expertise required for production.
The partnership is projected to generate revenue of approximately ₹10,000 crore, reflecting the growing demand for precision ammunition in India and globally. Over 50% of the manufacturing will consist of indigenous components and value addition, thereby supporting India’s defence indigenisation objectives.
This project also aligns with the government’s broader ambition of reaching ₹50,000 crore in defence exports by 2029, positioning India as a global defence manufacturing hub.
Diehl Defence, headquartered in Überlingen, Germany, is recognised internationally for its expertise in defence systems, including guided missiles, air defence, and ammunition. The company employs roughly 4,500 personnel and achieves annual sales exceeding €2 billion.
Helmut Rauch, CEO of Diehl Defence, expressed enthusiasm about deepening collaboration with the Reliance Group, highlighting the importance of this partnership for the Indian Armed Forces.
This marks Reliance Group’s fourth major international defence partnership, following collaborations with Dassault Aviation, Thales Group, and Rheinmetall.
On June 11, 2025, at 9:40 AM, Reliance Infrastructure share price is trading at ₹407.75, a 0.78% increase.
Despite the collaboration’s prominence in India, reports have emerged of Diehl Defence promoting its IRIS-T air defence system to Pakistan. The IRIS-T is notable for its missile interception capabilities, similar to India’s BrahMos system, raising strategic concerns about Germany’s defence diplomacy in South Asia.
Read More: Reliance Infra Foray Into the Aircraft Upgrades Business!
The Reliance-Diehl Defence partnership marks a major milestone in India’s pursuit of defence self-reliance and advanced weapon manufacturing. With a ₹10,000 crore investment and over 50% indigenous content, this pact strengthens India’s defence production capabilities and enhances strategic cooperation with global defence leaders.
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Published on: Jun 11, 2025, 10:25 AM IST
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