Reliance Defence and Rheinmetall AG Partner for Ammunition Facility in Maharashtra

Reliance Defence Limited, a subsidiary of Reliance Infrastructure, has signed an agreement with Rheinmetall AG, a defence company based in Germany, to set up an ammunition manufacturing facility in India. The collaboration will cover the supply of explosives and propellants for medium and large-calibre ammunition.

As of 10:19 AM on May 23, 2025, Reliance Infrastructure share price was trading at ₹287, a 1.27% increase, with a 9.72% increase over the past 6 months and a 71.03% over the past year.

Facility Details 

The upcoming plant will be located in the Watad Industrial Area in Ratnagiri, Maharashtra. It is planned as a greenfield project and will have an annual production capacity of up to 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellants. The facility is expected to be among the largest in South Asia.

Partnership

The agreement includes supply of raw materials from Reliance to Rheinmetall, joint marketing of select ammunition products, and possible future collaborations. Rheinmetall is to benefit from increased access to raw materials and a resilient supply chain.

Background 

Rheinmetall AG reported revenues of €9.8 billion in 2024 and has operations across 171 locations worldwide. Its portfolio includes a range of defence products, including artillery systems and smart munitions. Reliance Defence has previously entered into partnerships with Dassault Aviation and Thales.

The manufacturing unit is to contribute to India's goal of achieving ₹50,000 crore in defence exports by 2029. It also aligns with the government’s push for domestic defence production under the ‘Make in India’ and ‘Atmanirbhar Bharat’ programmes.

Read more: Reliance Infra’s Subsidiary to Face ₹358.70 Cr Insolvency Petition by SBI

This will be a major tie-up in the defence space. The facility is part of a plan under the Dhirubhai Ambani Defence City (DADC) project, which aims to integrate manufacturing for a wide range of defence equipment.

Conclusion

The Ratnagiri unit is intended to serve both domestic defence requirements and contribute to India’s export targets, while expanding the manufacturing footprint of Reliance Defence in the sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.