Reliance Defence Signs Strategic Cooperation Agreement With Diehl Defence

Reliance Infrastructure Limited promoted Reliance Defence Limited announced a Strategic Cooperation Agreement with Germany’s, Diehl Defence on July 10 for the production of next-generation terminally guided munitions (TGM).

The partnership will drive local production of state-of-the-art, Vulcano 155 mm precision guided munition system, catering to the Indian armed forces. The advanced munition system will incorporate state-of- the-art laser and GPS-guided targeting technology, enhancing precision striking capability, while ensuring high-impact accuracy for designated targets.

Reliance Defence has the market opportunity to potentially generate INR 10,000 Cr in revenue through the development and supply of advanced ammunition systems. The opportunity reflects not only organic growth potential but also the company’s ability to localise critical defence technologies, enhance value capture across the supply chain, and establish itself as a key private-sector partner in India’s defence modernisation roadmap.

Reliance Defence aims to rank among India’s top three private defence exporters. As the prime contractor to the Indian armed forces, it will lead the execution of this high-impact programme, with Diehl Defence providing critical technology and system-level expertise. The manufacturing initiative includes over 50 per cent indigenous value addition.

This marks Reliance Group’s fourth strategic global partnership, expanding upon its established collaborations with Dassault Aviation and Thales Group of France, and Rheinmetall.

Helmut Rauch said, “Diehl Defence looks forward to strengthen the current relationship with Reliance Group in the context of TGM for the Indian armed forces.”

Anil D. Ambani, “We are honoured to partner with Diehl Defence, a globally recognised leader in guided munition technology. 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. This collaboration is a testament to our commitment to operational excellence and innovation, aligning seamlessly with the Prime Minister’s vision of Make in India and Aatmanirbhar Bharat initiative. It exemplifies our resolve to catalyse sustainable growth, foster technological sovereignty, and position India as a formidable leader in international defence arena.”

As part of the agreement, Reliance Defence will establish a high-tech, greenfield manufacturing facility in Watad Industrial Area, Ratnagiri, Maharashtra. The manufacturing facility will contribute significantly to meeting the operational needs of the Indian armed forces, while supporting the country's ambitious defence export target of Rs 50,000 crores by 2029.

In the picture: Reliance Group founder-chairman, Anil Ambani with CEO, Diehl Defence Helmut Rauch