Reliance Defence, Rheinmetall agree on 'strategic partnership' in field of ammunition

New Delhi, May 22 (PTI) Reliance Defence and Germany-based Rheinmetall have agreed on a "strategic partnership" in the field of ammunition, officials on Thursday said.

An agreement to this effect has now been signed by the representatives of the Reliance Infrastructure Limited-promoted firm and Rheinmetall, based in Düsseldorf, according to an official statement.

"The collaboration between the companies will include supply of explosives and propellants for medium and large caliber ammunition to Rheinmetall by Reliance. Furthermore, the two companies intend to engage in joint marketing activities for selected products and are aiming to further extend their cooperation based on future opportunities," it said.

In order to support this collaboration, Reliance Defence Limited will set up a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra.

"The manufacturing facility, one of the largest in South Asia, will have an annual capacity to produce up to 200,000 artillery shells, 10,000 tons of explosives and 2,000 tons of propellants. This new facility will help Reliance Defence achieve its objective of amongst top three defence exporters in the country," the Reliance Group said in a statement.

This marks the third major partnership for Reliance Defence following its successful strategic alliances with Dassault Aviation and the Thales Group of France.

"Reliance Infrastructure Limited promoted Reliance Defence Limited (Reliance Defence) and Düsseldorf based Rheinmetall AG have agreed on a strategic partnership in the field of ammunition," it said.

The strategic partnership will strengthen India's defence manufacturing capabilities aligning with the government of India's flagship 'Make in India' and 'Atmanirbhar Bharat' initiatives. It advances Prime Minister Narendra Modi's vision to "position India among the world's leading defence exporters", the statement said.

The cooperation gives Rheinmetall further access to important raw materials and secure not only its supply chains, also in the interests of its customers and also creates further growth opportunities, it added.

"In India, the new state-of-the-art facility will make a significant contribution to supplying the country's armed forces," the Indian firm said.

"This strategic partnership of Rheinmetall with Reliance Defence led by Anil Ambani's Reliance Group illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Modi," Armin Papperger, the CEO of Rheinmetall AG, was quoted as saying in the statement.

"We are proud to partner with Rheinmetall AG, one of the world's most respected leaders in defence manufacturing, and to collaborate with visionary leader, Armin Papperger," said Ambani, the founder and chairman of Reliance Group.

"This strategic partnership brings cutting-edge capabilities to India, marking a transformational moment for country's private defence manufacturing sector," he added.

Ambani said this project marks a major step in the Reliance Group's long-term strategy to invest in the fast-growing defence manufacturing sector.

Reliance Defence Ltd recently announced plans to set up an integrated project for the manufacturing of explosives, ammunition and small arms under the Dhirubhai Ambani Defence City (DADC).

The DADC is being built in the Watad industrial area in Ratnagiri and once completed it will be the largest greenfield project in the defence sector ever developed by any private company in India, it said. PTI KND AS AS

Source: PTI