Shares of Reliance Infrastructure will be in focus on Wednesday after its subsidiary, Reliance Defence, and Germany’s Diehl Defence announced an expansion of their strategic partnership to supply precision-guided munitions to the Indian Armed Forces.
The two companies signed a strategic cooperation agreement on 10 June to locally produce the Vulcano 155mm precision-guided munition system—an advanced artillery shell designed for high-accuracy, long-range strikes.
The agreement marks a significant step in India’s push to reduce reliance on defence imports and strengthen its domestic manufacturing capabilities. The Vulcano 155mm uses laser and GPS guidance to deliver pinpoint accuracy, making it a valuable asset for modern warfare.
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Under the agreement, Reliance Defence will act as the prime contractor, while Diehl Defence will provide core technology and system-level expertise. Manufacturing will take place at a new greenfield facility in the Watad Industrial Area in Ratnagiri, Maharashtra, as part of the Dhirubhai Ambani Defence City (DADC).
Rs 10,000 crore opportunity
Reliance Defence estimates that the partnership could generate up to Rs 10,000 crore in revenue, driven by growing demand for advanced ammunition and the localisation of critical defence technologies. The company plans to achieve over 50% indigenous value addition, in line with the government’s defence indigenisation targets.This also supports India’s broader goal of reaching Rs 50,000 crore in defence exports by 2029.
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Diehl Defence, based in Überlingen, Germany, is a global player in advanced defence systems, including guided missiles, air defence, and ammunition. The company employs about 4,500 people and generates annual revenues of over €2 billion.
“We look forward to strengthening our relationship with Reliance Group in the context of TGM for the Indian Armed Forces,” said Helmut Rauch, CEO of Diehl Defence.
This marks Reliance Group’s fourth major international defence partnership, following previous collaborations with Dassault Aviation, Thales Group, and Rheinmetall.
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